Mergers and Acquisitions to Reduce Europe's Overbanking

Date: 2015-10-07; view: 688.

B) Sum up the text in 5-7 sentences and present your summary in class.

A) Fill each gap with a suitable word from the box.

Ex.7.

Europe is vastly overbanked and overbranched, according to a recent of 100 European banks from 13 countries.

The survey__ that the UK is the least overbanked country in Europe, with two banks million people, while central Europe is the most overbanked, that is, Germany (44), Switzerland (58) and Austria (131). Southern Europe - Italy, Portugal and Spain - is overbranched rather than overbanked. Europe as a whole has 23 banks per million population.

The survey concludes that the _ of banks in Europe is set to fall by over a quarter in the next 10 years, or by about 2,300, of which 1,300 will be in Central Europe, since the bank extinction rate of the last 10 years is likely to continue.

The survey concludes that _ in banking has forced down the rate of return on assets to an uneconomic _. The main competitors have been the securities and insurance industries. The decline in overbanking will be _ about mainly through mergers and acquisitions.

Other conclusions include the prediction that there will be more domestic than cross-border _ many of which will involve small savings and mutual banks, merging in some cases with commercial banks.

Bankers see European economic and monetary union (EMU) as the single most important _ of the decline in the number of banks, linked with competition and technology. The Euro will bring down the barriers to the _ banking market and make bank interest rates lower, more transparent and more competitive. The _ of telephone and electronic banking will reduce the need for branches and accentuate competition both within and _ borders.

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