Completion of the European Single Market Programme in FinancialServices has, as expected, set in motion a rationalisation process within the European banking industry, as banks respond to increasing competitive pressures that are having a dampening effect on their traditional business margins. Assesses the importance of these developments in the context of the policy options that are open to the European banking community in the new millennium. In particular, given the prospect of an integrated European economy, now commonly referred to as Euroland, the paper addresses, as its central theme, the potential for the development of pan-European banks that would then be in a position to configure longer-term globalisation strategies. Evolution in this direction, if it occurs, is important from a European Central Bank policy perspective, since it would raise systemic risk issues if a small number of European licensed banks became``too big to fail''. We conclude, however, that the most prominent strategic response is likely to be based on the European``regionalisation'' of banks and markets rather than pan-Europeanisation.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.