Geopolitics and Its Impact on European Banking
Type
journal article
Date Issued
2026-09-14
Author(s)
Abstract
Abstract: This white paper examines how geopolitical tensions are reshaping European banking. It identifies two main channels of change: shifts in market conditions, including trade fragmentation, energy security, industrial competition and defence financing; and the growing geopolitical dimension of financial regulation and supervision. It then examines how European banks are adapting through changes in geographic exposure, consolidation, diversification into strategic sectors and technological transformation. The paper concludes by identifying strategic implications for banks, including integrating geopolitics across risk and strategy, strengthening decision intelligence, engaging with public authorities and developing partnerships with public financial institutions.
HSG Classification
contribution to practical use / society
Refereed
Yes
Subject(s)
Division(s)