Alliance Networks in European Banking
Posted: 2 May 1998
Date Written: June 1994
This paper analyses the structure of strategic linkages - including mergers, acquisitions, alliances, equity holdings, joint ventures, and cooperative agreements - among the 200 largest European commercial banks. Most of these linkages have occurred as strategic reactions to the current acceleration of financial integration in Europe and the resulting changes in the bases of competition in the banking industry. By analyzing the structures of linkage formation among European banks, we can determine which of these impacts and strategic reactions are most salient. We find two types of strategic blocks: those yielding intramarket consolidation and those providing cross-border complementarity, the latter largely among banks with different strategic capabilities. We find no cases where linkages lead to Pan-European, universal banks, i.e., banks that seek broad geographic and product-client coverage.
JEL Classification: G15, G21
Suggested Citation: Suggested Citation