- New Strategies Facing a Single Market and the Euro-

The reasons behind the strategies adopted by European banks are to harmonize regulations in all European Union member countries for the creation of a unified banking market, and to consolidate the sector, which is suffering from oversupply and fragmentation. The result from mergers and acquisitions, however, has been disappointing due to the existence of strong cultural and technical barriers, preventing the business expansion across borders of member countries. Notwithstanding the existence of difficulties and challenges, the dominant strategy towards the formation of financial conglomerates in Europe would linger. In view of the continued development in the European market and China’s entry into the World Trade Organization, European banks are expected to have room for considerable business expansion in the medium term