Financial Restructuring in European Banking & Foreign Expansion

Latin American Business Review, Forthcoming

Posted: 19 Aug 2002

See all articles by David Marques-Ibanez

David Marques-Ibanez

European Central Bank (ECB)

Philip Molyneux

University of Sharjah; University of Sharjah - College of Business Administration

Abstract

This paper examines the main structural and performance features of European banking. It demonstrates that while banking markets have become increasingly concentrated and bank numbers have fallen, competition appears to have intensified. Given the large number of banks and branches in many countries, there still remain indicators of possible excess capacity in the system and that the consolidation trend, especially with the advent of the EMU, will continue. The paper considers ways in which banks have diversified to add to their revenues, and also discusses market power and competition issues relating to increased market concentration. Finally, we briefly discuss the foreign expansion strategies of European banks, particularly the Spanish banks in South America. The strategic emphasis of the top Spanish banks has primarily been based on building market power and a name presence in a region that has massive market potential.

Keywords: banking consolidation, European banks, foreign bank expansion

Suggested Citation

Marques-Ibanez, David and Molyneux, Philip and Molyneux, Philip, Financial Restructuring in European Banking & Foreign Expansion. Latin American Business Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=315664

David Marques-Ibanez (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
49 6913 44 6460 (Phone)
49 6913 44 6460 (Fax)

Philip Molyneux

University of Sharjah ( email )

College of Business Administration
University of Sharjah
Sharjah, Sharjah
United Arab Emirates

HOME PAGE: http://www.sharjah.ac.ae/en/academics/Colleges/business/Pages/ppl_detail.aspx?mcid=1

University of Sharjah - College of Business Administration ( email )

University City Road
Sharjah, 27272
United Arab Emirates

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