Too many cooks.(French banking industry)(Industry Overview)

Banker, The, January, 2001 by Garrod, Daniel

Eight national banking groups share the French market, yet there is still no sign of serious consolidation

Recent criticism of French banks has centred on volatile investment banking earnings and an over-reliance on the crowded domestic market. France boasts eight national banking groups, each with sizeable market share. The need for a retail champion is evident if they are to compete more effectively on the European stage and through consolidation there would be opportunities for cross-selling and lower cost bases.

It is unclear, however, from where the impetus for domestic consolidation will come and progress in cross-border alliances has faltered of late due to taxation and legislative problems. All the while, new competition continues to be...

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