The University of Cantabria had the pleasure to receive last week a lecture by Philip Molyneux, main researcher of the SANFI project “Government, Incentives and Risk Management in Global Banks” that was the organiser of this event. Philip Molyneux, professor of banking and finance at the Bangor University (United Kingdom) gave a talk about the state of banking in the world after the financial crisis. He showed that the EU banking system has too many Banks, which are much bigger than their national GDP. Banks in the EU grew too fast and this represents an important risk. This means that banks are too big to fail as if one fails it could seriously affect the whole economy.
He also discussed the Liikanen Report and assessed how adequate it is given the challenges. He discussed how it was trying to implement a restructuring of the EU banking industry, a resolution framework and European Banking Union.
BREXIT means that some banks will move their euro business out of London and into the EU, but he thinks the rest of their business will most likely stay in London.