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The Forces Behind the Consolidation Trend in the European Banking Industry
Credit and Capital Markets – Kredit und Kapital, Vol. 32 (1999), Iss. 3 : pp. 369–392
2 Citations (CrossRef)
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Johannes M. Groeneveld, Amsterdam
Cited By
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Wettbewerbliche Veränderungen im Bankensektor und ihre Auswirkungen auf die Geldpolitik der EZB
Untersuchung der Änderungen in den Geschäftsfeldern der Banken
Kriener, Eberhard
2002
https://doi.org/10.1007/978-3-663-09131-8_5 [Citations: 0] -
Banken auf der Suche nach strategischem Profil
Fusionen als Königsweg der Konsolidierung im deutschen Bankenmarkt?
Paul, Stephan
2006
https://doi.org/10.1007/978-3-8349-9223-9_5 [Citations: 0]
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Abstract
This paper analyzes the backgrounds and implications of the consolidation trend in the European banking sector in a systematic way. Aside from deregulation and innovations in the information technology, it is argued that the EMU constitutes an important driving force behind mergers and acquisitions in the EU banking industry. Here, a distinction is made between so-called input and output considerations on the one hand, and domestic and cross border mergers and acquisitions on the other. The desire to achieve input efficiencies refers to the proclaimed existence of scale, scope and X-efficiencies. The other category of arguments emphasizes the wish to realize efficiencies on the output side of the production process (e.g. an increase in market share or the prestige of the management). The latter category of arguments appears to be more valid. On the basis of theoretical and empirical reflections, further consolidation is expected to take place in France, Germany and Italy in particular. Moreover, a European banking sector consisting of three layers is a distant prospect. (JEL G21, G28, G34, L11)