This study of 51 major European banks, conducted by Arthur D. Little’s Global Financial Services Practice, aims to identify the most efficient commercial banks in Europe. Cost-efficiency gives a bank freedom to manoeuvre. Strong, free cash flow gives a bank the means to invest in new markets, products or technologies, to reward its shareholders or to channel value back to its customers. Conversely, low relative cost-efficiency limits a bank’s options in the marketplace, and makes it vulnerable in times of financial crisis.