Bank Mergers in Europe: The Public Policy Issues

A very large merger wave in the banking industry has taken place in Europe over the last 15 years. Public policy‐makers need to assess how bank mergers – be they domestic intra‐industry, across‐industry, or cross‐border – affect their mission of protecting investors and ensuring financial stability, an appropriate level of competition, and the competitiveness of national firms. Moreover, as the banking world is becoming increasingly international, there is a need to reassess the structure of bank regulation and supervision which has been assumed historically by each nation‐state.