Bank Strategies in Euroland with Special Reference to the Benelux Area
AbstractIn its first part, the present essay focuses on one main thesis. The transition to full EMU and the introduction of the euro will have a more effect on European banking than the previous Single Market¨Project (Europe 1992). They deal directly with money, the basic material of banking, and they pave the way to more aggressive bank strategies. In conjunction with other factors, they not only induce "accomodating" reactions, mainly through cost-cutting, but also "autonomous restructurings" : less intermediation, more market activities and, most of all, external growth through M(ergers) and A(cquisitions). This significantly changes the structure and the policies of European banking. Recently important and controversial M and A have occurred in the Benelux area. In the second part of the essay, these developments are analysed in the just described framework. After a global overview two case studies are presented : ABN-AMRO, n° 1 in the Netherlands; the Generale Bank, n° 1 in Belgium. The main conclusion is that the rationale behind the recent M and A is not mere size, but also accelerated rationalisation and penetration in foreign domestic markets, which was previously hampered by defensive and ultimately self-defeating strategies of strengthening the mere national domestic base. However, at the present stage, the importance of institutional resistance, even in small neighbouring countries, should not be under-estimated. Hence, cross-border restructurings in European banking will only increase gradually.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces9905.
Date of creation: Mar 1999
Date of revision:
EMU; euro; bankstrategies; Benelux financial systems.;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karla Vander Weyden).
If references are entirely missing, you can add them using this form.