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Article
Publication date: 1 February 1995

Theo Kiriazidis and George Tzanidakis

Suggests that EU legislation has induced enormous changes in thestructure of the European financial markets, and that financialinstitutions increasingly modify their strategies to…

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Abstract

Suggests that EU legislation has induced enormous changes in the structure of the European financial markets, and that financial institutions increasingly modify their strategies to cope with the new developments. Identifies which type of corporate strategy enhances organizational efficiency. The position developed is that, at the national level, a multipurpose institution (or “financial supermarket”, offering a range of financial services, such as banking, insurance, pensions, etc.), with quasiindependent entities, could serve this objective. At the European level, given the remaining obstacles to financial integration, the risks and the high costs of cross‐border mergers and acquisitions, alliances of financial institutions appear to be the appropriate response.

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