Economics Research International

Research Article

Insurance and Banking Interconnectedness in Europe: The Opinion of Equity Markets

Table 3

Granger causality between banks and insurance—99% confidence level.
Bank∖insurance Aegon Ageas Allianz Amlin Generali Aviva Axa Fondiaria ING Jardine Lloyd Legal & General Muenchener Re RSA Insurance Sampo Scor Storebrand Swiss Life Holding Swiss Re Topdanmark Vienna Insurance Zurich Fin.
Alpha Bank       ↑      ↑    ←   ↑      
Banca Carige                  ↑     
Banca Pop. Emi. Romagna   ←          ↑        ↑    
Banca Pop. Di Milano   ← ↑                    
Banca Pop. Di Sondrio                   ↑    
Banco Com. Portugues   ↑     ↑      ↑    ↑   ↑      
Banco Espirito Santo ← ←    ←    ←    ←       ← ←    
Barclays   ←     ↑ ←     ↑        ←    
Bnp Paribas   ←               ←      
Commerzbank                     ↑  
Credit Suisse Group       ↑      ↑          ←  
Danske Bank   ↑     ↑                
Deutsche Bank       ↑      ←      ←      
Dnb Nor Asa       ↑    ←    ←   ←    ← ←    
Hsbc Holdings                      
Intesa Sanpaolo                      
Kbc Groep   ↑     ↑ ←     ↑           
Lloyds Banking       ↑                
Mediobanca               ↑        
Nat. Bank of Greece   ←               ↑      
Piraeus Bank                 ↑     ↑  
Pohjola Bank                   ←   ↑  
RBS   ← ↑               ←      
Skandinaviska Enskilda ← ← ↑    ← ↑ ↑   ←   ←        ←    ←
Societe Generale        ←          ←      
Standard Chartered ↑ ↑     ↑    ↑   ↑      ↑     ←  
Svenska Handelsbanken        ←           ←     
Swedbank ←     ←       ←       ← ←    ←
Sydbank ↑ ← ↑   ↑ ↑ ↑   ←     ↑ ←    ↑ ← ↑    ↑
UBS   ↑       ↑    ↑      ↑   ↑   ← ↑  
Unicredit       ↑   ↑              
This table shows the direction of Granger-causality between banks and insurance companies measured at a 99% level of confidence. The calculations follow the setup presented in Section 2.2. The direction of Granger-causality is indicated by arrows in the table: ↑ indicates that Granger-causality runs from a particular bank (left most column) to a particular insurance company (top row), while → indicate that Granger causality runs from a given insurance company (top row) to a given bank (left most column). It is seen that in a few cases there is a joint effect where Granger-causality runs in both directions, as indicated by both arrows being printed in a given cell.