Is it possible to create large European banks?

The incentive for consolidation in the euro-zone banking sector is strong: there is no large pan-European bank, whereas there are now certainly increasing returns in banking, and such pan-European banks would help unify capital markets. The low market valuation of euro-zone banks may also facilitate this consolidation, especially since the purchasing bank will now be able to recognise badwill as capital. There remains the argument of the danger of big banks, which are "too big to fail". This argument may not be very relevant: The failure of a mid-sized bank is as unacceptable as that of a large bank; The Single Resolution Mechanism (SRM), which will have the Single Resolution Fund (EUR 55 billion in the long term), manages banking crises at European level; If large banks are more efficient than mid -sized banks thanks to increasing returns to scale, they will be more profitable and therefore less fragile.