Bank deregulation and acquisition activity: the cases of the US, Italy and Germany

Abstract

Purpose

Bank regulators across the world have recently lifted restrictions on where banks can operate and what type of activities they can perform. Following the deregulation of the sector, bank mergers and acquisitions have grown substantially. The purpose of this paper is to outline bank deregulation and acquisition activity, focusing on the USA, Italy and Germany.

Design/methodology/approach

The paper looks at how changes in the regulatory regime of the USA, Italy and Germany have spurred bank merger activities. For each country, future polices that bank supervisors may adopt in order to benefit from a more integrated financial sector are also critically discussed.

Findings

Over the last two decades, supervisors in the USA, Italy and Germany have begun to deregulate parts of their banking industries, thus, sparking a process of consolidation in their national banking sectors that still has not ended.

Originality/value

The paper presents a recent history of deregulation in the USA, Italy and Germany, offering recommendations as to what regulators should do next.

Citation

Hagendorff, J., Collins, M. and Keasey, K. (2007), "Bank deregulation and acquisition activity: the cases of the US, Italy and Germany", Journal of Financial Regulation and Compliance, Vol. 15 No. 2, pp. 199-209. https://doi.org/10.1108/13581980710744084