banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro … enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …, the home bias will remain. It is also argued that positive diversification effects may outweigh possible negative effects …

,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 …