LONDON, June 18 Reuters Supporters for more consolidation in the euro zone39;s banking sector have been watching Spanish lender BBVA39;s hostile bid for Sabadell, alongside comments from some supervisors and lawmakers supporting the idea of more tieups.

Regulators are keen for more consolidation both within and across countries because they believe fewer, stronger lenders will boost the economy and enable euro area banks to compete more effectively with larger, more profitable rivals in the United States and Asia.

Yet big banking takeovers have been rare since the 200809 global financial crisis, with most dealmaking forged out of necessity.

SOME CONCENTRATION

Banking industry concentration, as measured by the share of bank assets accounted for by the largest five credit institutions, varies widely across the bloc.

In Greece, Cyprus and the Baltic states, that share ranged between 88 and 95 in 2023, according to data from the European Central Bank analysed by Reuters.

Several of these countries have also seen the biggest increase in concentration in the past decade, as financial crises forced lenders to acquire weaker rivals.

In Spain, where the top five credit institutions39; 69 share of bank assets is close to the euro zone average, the number of banks has fallen to 10 from 55 before the global financial crisis.

Germany, by contrast, has hundreds of banks, according to data from its central bank.

BIG AND FRAGMENTED

Euro zone banking concentration by country…