The European Banking Regulation Framework Between Risk and Economic Growth the Euro Area Versus the Non-euro Area

The European banking market faces, on the one hand, a level playing field gap compared to the US market and, on the other hand, first and foremost for that matter, an internal level playing field gap between the “Euro area + ” versus the “Non-Euro area − ”. In this context, we have deepened the essential aspects that led to these gaps along with the means to a subsequent redirecting towards the intended path, through the analysis of some quantitative and structural ratios. Besides these quantitative factors, there are some qualitative ones that need to be considered in order to determine a full and complete image. The type of economy, the depth of financial, the governance, and the soundness of state institutions, economic freedom versus political freedom, the level of general financial education and of entrepreneurial education, the quantity, structure, and quality of the entrepreneurial environment, the funding structure, should be considered, but first and foremost the main qualitative factor that needs to be considered is the degree of regulation and how this may vary substantially between these areas. The analysis of the main quantitative and qualitative factors has revealed that a unique approach for the regulatory treatment between the two areas has opposite effects and does not support the target—the accession of the “Non-Euro area” to the “Euro area + ” or the completion of the much coveted and expected banking union that would create most of the prerequisites to solve the level playing field gap between Europe and the USA.