Table 1.19. International mergers in Europea
start to trade financial services over the telephone or Internet, then the importance of
the branch network will disappear and, very likely, a large size will also be required to
establish a strong national or European brandname. As cross-border restructuring
becomes necessary, a second issue will arise. Should this international restructuring
occur along specific lines of business, such as fund management, corporate and investment banking, or should it take the form of a large diversified international universal
| Deutsche Bank|| Morgan Grenfell|
| ING Bank||
| Swiss Bank Corp|| Warburg, O'Connor, Brinson, Dillon Read|
Dresdner|| Kleinwort Benson|
ABN-AMRO|| Hoare Govett|
FORTIS|| Mees Pearson|
| Merrill Lynch||
Smith New Court ( UK)|
FG ( Spain)|
BZW (equity part)|
|a Not complete, for illustration only.|
7. ConclusionsThe objective of this chapter has been to identify the various ways through which a
single currency would alter the sources of competitive advantage of European financial
firms. Our analysis has identified various markets which will be significantly affected.
Besides the obvious fall in revenue from intra-European currencies trading, the analysis has led to nine main conclusions.
|1. ||The structure of national government bond markets and their fast-expanding
appendices, the interest rate derivative markets, will change fundamentally. The fragmented national markets will be replaced by a European consolidated market. This is
due to the fact that two main sources of competitive advantage for domestic banks
which have been identified in the literature, namely access to home-base investors and
expertise in national monetary policy, will vanish. Moreover, many of the national interest rate derivative instruments which have been created in recent years win disappear,
being replaced by a few euro-based instruments.|
|2. ||An analysis of the corporate bond and equity markets suggests significant but less
fundamental changes. In these currently fragmented markets, three main sources of
competitive advantage are client relationships, assessment of credit risk, and currency|
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: European Capital Markets with a Single Currency.
Contributors: Jean Dermine - Editor, Pierre Hillion - Editor.
Publisher: Oxford University Press.
Place of publication: Oxford.
Publication year: 1999.
Page number: 26.
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