Expansionary monetary policy vs. bank concentration: The Eurozone & other European countries

Expansionary monetary policy combined with unconventional measures led to a decline in the profitability of U.S. and European banks. This paper studies whether such also affect asset concentration banking sector. The findings this research add value previous research, taking step deeper into examining consequences expansionary policy. It is found that reductions central bank?s (ECB?s) key rate can predominantly explain growth eurozone countries. Furthermore, ECB?s had more substantial influence on banks outside than those countries? own policies. Thus, poses specific challenges financial stability Europe.