Banking Industry: Structure and Competition

3 important questions on Banking Industry: Structure and Competition

How many deposit taking institutions are there in the US and EU?

US: 9.000
EU: 10.000

Euro vs US banking system

- size and structure relatively similar
- large difference whitin borders (eg a few banks dominate 80 to 90% of the banking sector in the Netherlands)
- strong home-bias in ownership of banks

Differences Europe, Anglo-Saxon an Japanese economies:

  • Continental Europe: Universal banking: no separation between banking and securities industries (combinations of banking and insurance firms)
  • British-style universal banking system: universal banks for securities underwriting with separate legal subsidiaries
  • Japan: some legal separation of the banking and other financial services industries. These banks can hold substantial equity stakes in commercial firms

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