Foreign competition in U.S. banking markets
The global integration of the world's banking markets seems an inevitable, if not an already accomplished, fact. However, the accommodations that global integration will force upon U.S. banks may well be more disruptive and anxiety-inducing than those experienced in other sectors of the U.S. economy that have been integrated into the global marketplace. This article discusses the extent and nature of foreign competition in U.S. banking and argues that the increasing importance of foreign banking organizations is primarily a consequence of their superior capitalization.
