The Transformation of European Banking

This paper reviews the sources of change in continental European banking. In addition to technological factors and increased competition associated with European Monetary Union, competition from US institutions, the convergence of the asset management and insurance industries and of these two with traditional banking, increasing recourse by European borrowers to the public capital markets, and the equitization of the European markets are identified as crucial considerations. Led to acquire American expertise in these areas, European institutions have caused the stock prices of American investment banks to rise further than those of other financial institutions