European retail banking: Will there ever be a single market?

Integrated markets for entertainment and communications, as well as nearly all goods, stretch from the Arctic to Cyprus. By contrast, Europe’s retail banking industry remains largely segmented along national lines. As a result, it is highly inefficient. This has to change if the full potential of the single market and the euro are to be realised. European lawmakers need to create an environment in which cross-border deals make commercial sense. A framework in which each business within a bank has its own profit-and-loss account and its own dedicated capital would lead to cross-border activity below the level of mega-mergers.