ABSTRACT
As the new millennium begins, the worldwide banking sector is in the process of a revolution which will result in larger, more regionally integrated banks that offer a variety of financial products and have a substantial presence in international markets and online markets. The chapter examines the recent role that each of these challenges has played in the European, Asian, and American banking systems and discusses the possible future interactions of these forces as the international banking system evolves toward a new, stable equilibrium. Consolidation of banks within their national banking sector has been extensive, especially in Europe. Consolidation in the French domestic banking sector, with the growing involvement of foreign banks, will continue for the next several years. individual countries must move away from advocating rules in international and European banking reform which will further their own competitive advantage.
