In the years since the outbreak of the crisis, financial markets have persistently reduced the market value of European banks, as consequence of macroeconomic, regulatory and structural factors. Even if these factors affected the whole European banking industry, differences characterized market evaluation of banks along country, size and business mix profiles. Following the extant literature on bank market valuation, our paper tests for the difference between market to book ratios of the large

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... uropean banks, using three blocks of indicators typically affecting the banks' market value. To verify our research question, we first regress the market to book ratio over performance measures and risk indicators. Then, we verify whether bank business size and composition affect bank market valuation. Lastly we evaluate the relevance of country context variables, by considering both macroeconomic and banking structure indicators. Our panel consists of all large publicly traded bank holding companies at European level. Large publicly traded banks are all listed banks with consolidated assets exceeding 50 billion euro in 2015. The results highlight that the market considers the fundamental variables (current performance and volatility) as the main factors affecting the evaluation process. Furthermore a significant share of variability in banks' market-book values is explained by country context variables. the banks' earnings prospects especially hurting the smaller deposit-funded and less diversified banks. See Borio et al. (2015), IMF (2017), Claessens et al. (2017). 2 In a recent study on the determinants of value creation within U.S. commercial banks, Egan et al. (2017) add evidence to the extant literature that the screening and monitoring of information-intensive loans is an important source of bank value while the ability to raise sticky short-term funding is a key source of bank synergies. 3 With the words of Philippon (2017): "Fintech...innovations can disrupt existing industry structures and blur industry boundaries, facilitate strategic disintermediation, revolutionize how existing firms create and deliver products and services, provide new gateways for entrepreneurship, democratize access to financial services, but also create significant privacy, regulatory and law enforcement".