Strategic alliances and competitive edge: insights from Spanish and UK banking histories

Abstract

This research assesses the success of collaboration agreements through changes in competitive strength rather than the longevity of the transactions or the formality and visible structure of the agreements. To establish competitive strength, as development and renewal of capabilities, the research proceeds through the review of the alliance between the Co-operative Permanent Building Society, the Co-operative Wholesaling Society, Scottish Co-operative Wholesaling Society and Co-operative Insurance Society (1943-65). This cooperative agreement allows insights into the strategy of non-banks and nonfinance participants aiming to enter British bank markets. The research also considers the rather different process at Spanish savings banks, with a particular focus on IT outsourcing (1977-95). Cases in the UK and Spain form an historical argument and are used to demonstrate how the implementation of strategy is as important as strategic visioning to achieve competitive advantage in bank markets.

Impact of the Financial Crisis on Cross‐Border Mergers and Acquisitions and Concentration in the Global Banking Industry

“…A dominant economic theory in the 1980s refers to the theory of contestable markets. By removing regulatory barriers to entry in the banking sector, governments could increase competition, forcing domestic banks to improve their performance whether or not foreign banks actually entered the market (Batiz‐Lazo, ; Baumol, Panzar, & Willig, ; Baumol & Willig, ). Many countries have liberalized their banking industry since the 1980s, and increased international competition has led to a global banking market where domestic banks compete with financial institutions around the world.…”

Accounting Regulation and Management Discretion in a British Building Society, Circa 1960

“…This London-based society was formed to enable depositors, particularly members of the co-operative movement, to buy their own homes (Ashworth, 1980, p. 15;Cassell, 1984, p. 13). The Co-operative Congress, however, refused to give full backing to another financial institution developing alongside the banking arm of the Co-operative Wholesale Society (the CWS Bank -see Bátiz-Lazo, 2004;, but many leading and rank and file members of the co-operative movement joined the CPBS and some became its agents, either personally or through their retail societies.…”

“…First, we focus on one large institution, providing a rich account of the business strategy and operations typical of a large society. Little has been written about the business and accounting history of individual building societies, although the twentieth century history and performance of the building society movement in transforming retail deposits and "share" investments into long-term mortgage financing for domestic house purchases has been well-documented (see, e.g., Davies, 1981;Boléat, 1986;McKillop and Ferguson, 1993;Jeremy, 1998;Bátiz-Lazo, 2004). …”

A model for regulatory intervention in Irish banking

“…114 The challenge is to provide a regulatory framework that increases competitive efficiency, facilitates greater accessibility and leads to a reduction in compliance costs that can stifle growth and innovation in the banking system. 94 As regards enforcement, this paper argues for the adoption of a hybrid enforcement model (HEM) and challenges the prevailing "blanket" approach. The HEM model is based on combining elements of statutory and self-regulatory enforcement.…”