The effects from the Covid-19 crisis come on top of the combination over the past decade of persistently low interest rates, regulatory changes, and competition from shadow banks and new digital entrants that challenged the traditional bank business model pre-Covid-19. The second report in the CEPR/IESE series on The Future of Banking tackles these crucial challenges, examining the competitive responses of the different players – both incumbents and new entrants – and the associated policy and regulatory issues.

There is no doubt that the Covid crisis represents a challenge for European unity and another crash test for the euro. This eBook brings together a collection of Vox columns proposing and analysing the appropriate responses to 'flatten the economic recession curve' and to safeguard the most impacted groups from the economic fallout of the health crisis.