Using a hierarchical cluster analysis and considering a large range of harmonized banking indicators, this article assesses the impact of the recent crisis on the fragmentation of the euro area banking system. Results show that the crisis has led to a growing heterogeneity of banking structures across euro area countries. There is a lack of banking integration for Greece and Italy since the creation of the euro zone. Our findings confirm, therefore, the need to construct a banking union that will mitigate cross-country differences in terms of banking structure and promote a fully integrated banking system.
