analyzes the implications of the euro for cross-border banking activities. A portfolio model is used which captures the role of … enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

,300 mergers that took place between 1978 and 2001 to analyse the determinants of international bank mergers. We test the extent to … regulated environments are less likely to be the targets of international bank mergers. Hence, the lifting of regulations can … spur growth in cross-border bank mergers. Also, mergers tend to be less frequent if information costs are high. …

Europe, bank finance plays a relatively important role, and efforts have been made at creating a level playing field for …

capital mobility, the transmission of shocks, and the portfolio choices of banks. …

Bank distress can have severe negative consequences for the stability of the financial system, the real economy, and … for public finances. Regimes for the restructuring and resolution of banks, financed by bank levies and fiscal backstops …, seek to reduce these costs. Bank levies attempt to internalize systemic risk and to increase the costs of leverage. This …