Easier said than done
Article Abstract:
Competition in European markets is likely to increase as a result of monetary union, yet there are factors hampering consolidation of banks, despite the need for mergers and acquisitions. Mergers can lead to cost reductions as branches are closed and jobs are shed to avoid duplicating services. There are regulations that make shedding jobs difficult in Europe, and many European banks are in the public sector. There are also specialist banks in some countries such as Spain and France. British banks tend to be especially profitable, and they would not easily achieve the same level of profitablity in mainland Europe.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Eastern promise
Article Abstract:
Hungary, the Czech Republic and Poland are welcoming foreign investors in the banking industry. Foreigners account for almost 60% of the Polish banking industry in terms of capital. Few Polish banks have not tied up with a foreign partner. Poland is the largest market in Eastern Europe, and has 39 million inhabitants. There is strong economic growth, and the banks have benefited from tackling bad debt problems early on. Remaining opportunities include the PKO, which once held a savings monpoly.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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Spaghetti junction
Article Abstract:
The Italian banking industry has been affected by mergers, though banksin Italy are still small by European standards. Consolidation means that costs can be reduced and revenues increased, allowing increased investment in technology. Planned mergers include a bid for Banca Commerciale Italiano by Unicredito Italiano, and for Banca di Roma by Sanpaolo IMI. The Bank of Italy has sought to encourage consolidation in the industry, and has arranged some deals itself.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
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