Scale Versus Specialization: Banking Strategies after the Euro
European Management Journal, Vol. 17, No. 6, Pp. 567-576, December 1999
Posted: 14 Nov 2000
Abstract
Competition in European banking is speeding up after the launch of the euro. The European single currency is having a straight impact on banking strategies, both for European and foreign banks alike. Financial services firms are adjusting to the new landscape by a combination of M&A and international growth. In this paper, we explore the rational behind those basic questions.
A strategic analysis of the banking industry and its main players in Europe leads to some intriguing conclusions: cross-border M&A are painful and do not seem to deliver results, scale is not an important key success factor, the euro is opening up new opportunities for financial specialists and the universal banking model is facing the challenge of extinction.
JEL Classification: G2, M1
Suggested Citation: Suggested Citation
Jordi Canals (Contact Author)
IESE, University of Navarra ( email )
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