The European Community and Japanese Banks — 1992 and Beyond

Abstract

It seems as if, in 1987/8, city, trust and long-term credit banks finally recognized the necessity of updating their European strategies in view of the EC’s drive to complete the Internal Market by the end of 1992 along the lines drawn in the Commission’s White Paper of June 1985.¹ Although there are doubts that this deadline can be met, the past 18 months have witnessed a rapid expansion of Japanese banks into Germany, France and Italy, with ‘1992’ being the one and only reason mentioned by the management. This chapter deals with the implications of the growing presence of Japanese banks in the EC for the Community’s policy objectives. To begin with, the policy objectives are analysed in their development and dimensions. That is followed by an assessment of the future competitive situation between Japanese and European banks, and concluded by a discussion on the implications of the author’s scenario for internal and external European policy objectives.