Concluding Remarks

Since the late 1980s international events, such as globalization, innovation, deregulation, disintermediation, consolidation, and the new emphasis on shareholder value have deeply modified financial and banking markets. Other events have affected European banking markets in particular, such as the completion of the EU single market programme and its extension to eastern European countries, and the creation of the euro area. These events have rapidly brought about dramatic changes in the level of competition, influencing the quality and the price of financial services and banks’ performance by squeezing profitability. In response to these changes, banks have initiated a deep restructuring and reorganization process at all levels, strategic, operational, and organizational. Yet, even in this increasingly competitive environment, cooperative banks remain successful and healthy, and are gaining market share at the expense of their competitors.