bottiglia (eds.) - consolidation in the european financial industry (2010)

[...]... Leaving aside their structural differences, the drivers behind M&As in the two systems were very similar: the start of a phase of far-reaching deregulation in the financial sector, a wave of intensive innovation in technology and financial instruments, the consequent growth of competitive stresses between operators, the rising financial integration of the domestic and international markets and, finally,... of theoretical and empirical studies on financial sector consolidation that has appeared since the mid-1990s, discussing findings for the US, European and international markets The two chapters which follow analyse the implications and consequences of financial sector M&As Chapter 3 considers the measurement of a number of effects of consolidation operations in the financial industry, concentrating in. .. Europe’s financial systems The first two chapters provide a general description of the phenomenon Chapter 1 sets out to provide a general definition of the consolidation process in the banking -financial industry by outlining the course of events in both the European Union and the USA It defines the types of operations carried out (cross-border and cross-sector) and then discusses their aims, motivations... acquisitions, on the other hand, create a financial conglomerate In this case, the range of activities in which the new entity deriving from the operation is able to engage is significantly different and much larger, ranging from traditional banking business to highly specialised Gian Nereo Mazzocco 6 Consolidation in the European Financial Industry Table 1.5 Types and outcomes of M&A operations in the financial. .. and the M&A operations in particular, widespread in the financial sector since the early 1990s of the last century, and responsible for a radical transformation of the structural characteristics of the banking and financial systems in both Europe and the United States The main drivers of this process have been the liberalisation and integration of the European market and, in more general terms, the. .. importance for the future evolution of the largest banking and financial groups in both Europe and North America, partly in the light of the crisis: the changes in their ownership structure, concentrating in particular in the role of the Sovereign Wealth Funds (SWFs), most of them from nonEuropean states This is done by analyzing the 44 most important global banking groups in terms of their capitalisation... been widespread in the financial sector since the early 1990s, and have led to a radical transformation of the structural characteristics of the banking and financial systems, in both Europe and the United States In particular, this mass of mergers and acquisitions has led to an increase, across the board, in the degree of concentration of the credit supply, and in the availability of financial services... seen in Tables 1.1, 1.2, 1.3 and 1.4, which summarise the main aspects of the phenomenon, the rate of M&A operations has been very high, in both Europe and the USA Therefore, as well as a continuous reduction in the number of banks, which has been ongoing for at least two decades in both areas, there has also been an across -the- board increase in the industry s levels of concentration When it comes to the. .. activity and other financial institutions She is a member of CEFIN, Center for Studies in Banking and Finance Veronica De Crescenzo is a Lecturer in Banking and Finance at the Faculty of Economics of the University of Verona, where she teaches Financial Markets and Institutions She graduated in Economics from the University of Verona and received a PhD in Financial Markets and Institutions from the University... short, considering a long enough time-scale and accepting the uncertainties deriving from the extraordinarily difficult period generated by the recent crisis, we can state that on the one hand M&A activity has been the most significant phenomenon affecting the structure of the credit and financial systems during the last two decades, while on the other, it has also been the core process in the strategic . description of the phenomenon. Chapter 1 sets out to provide a general definition of the consolidation proc- ess in the banking -financial industry by outlining the course of events in both the European. Project (PRIN) financed by the universities themselves and the Italian Ministry of Education, entitled Financial inter- mediaries cross-border and cross-sector concentration processes in Europe:. Studies in Banking and Financial Institutions Series Editor: Professor Philip Molyneux The Palgrave Macmillan Studies in Banking and Financial Institutions are international in orientation and include