In fact, M&A activity in the euro area banking sector, and especially across borders, has been declining since 2000, especially in the aftermath of the crisis.6 The overall value of M&A transactions declined from an average of € billion in 2000-06 to less than € billion in 2017.
Of this amount, cross-border euro area transactions accounted for 17% in 2017 compared with 21% in 2000-06.7 Given the economic benefits of further consolidation in the euro area banking market, we should pause for a moment to consider what is stopping us from reaping these benefits. There are certain structural challenges that still need tackling.