Study on the impact of state aid rules for banks in difficulty

Abstract (EN) This study evaluates the impact of State aid for banks in difficulty in five areas of assessment: financial stability, competition, banks’ viability, market discipline and moral hazard, and efficiency of State aid rules. Based on a unique dataset combining European bank-level data between 2007 and 2021 with information on State aid from the European Commission, relevant outcome indicators for aided banks and their matched nonaided control banks are compared via difference-in-difference regression analyses at the bank level.

Source: op.europa.eu