Specialized banks thrive in Europe, challenging traditional mergers and acquisitions.
The study looked at European banks to see how efficient they are and how they can compete better. They found that bigger, more specialized banks that focus less on regular customers are better at saving money and making profits. Banks don't need to be a specific size to be efficient, but they should focus on improving how they work. Bank mergers might not always make sense. Efficiency varies more within countries than between them, showing that some countries' banking markets are not fully competitive.