Summary Report

Financial Sector Assessment Program (FSAP)



Group of Ten

Report on Consolidation in the Financial Sector
January 25, 2001

This report is being posted simultaneously on the websites of the BIS, IMF, and OECD, which are the three organizations that provide the secretariat for the Group of 10.

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Table of Contents
Introduction and summary of findings and policy implications
392k pdf file 1.   Introduction
  2.   Key findings and policy implications
  3.   Extended summary
Chapter I.  
392k pdf file
Patterns of consolidation
1.   Introduction
  2.   Methods of consolidation
  3.   Patterns in transaction activity
  4.   Patterns in the structure of the financial sector
  5.   Conclusion
  Annex I.1  Securities exchanges and consolidation
Chapter II.  
367k pdf file
Fundamental causes of consolidation
1.   Introduction
  2.   Framework
  3.   Forces encouraging consolidation
  4.   Forces discouraging consolidation
  5.   Future trends
  Tables and charts (Chapter II)
  Annex II.1  Interviews—country synopses
  Annex II.2  Interviews—technical appendix
  Annex II.3  Chronological list of key regulatory changes
Chapter III.  
737k pdf file
Effects of consolidation on financial risk
1.   Introduction
  2.   A working definition of systemic risk
  3.   Effects of consolidation in the United States
  4.   Effects of consolidation in Europe
  5.   Effects of consolidation in Japan
  Annex III.1  The effects of consolidation on managing
     systemic risk in Canada: the 1998 Bank Merger
     Decision
  Annex III.2  Potential effects of strategic alliances on
     financial risk
  Annex III.3  Consolidation and the liquidity of financial
     markets
Chapter IV.  
531k pdf file
The impact of financial sector consolidation on monetary policy
  1.   Introduction
  2.   The impact of financial sector consolidation on monetary policy
  3.   The impact of financial sector consolidation on the transmission of monetary policy
  4.   Some further possible consequences of consolidation for monetary policy
  5.   Some caveats and research challenges
Chapter V.  
531k pdf file
The effects of consolidation on efficiency, competition and credit flows
  1.   Introduction
  2.   Consolidation and efficiency
  3.   Consolidation and competition
  4.   Consolidation and the availability of credit flows
  5.   Policy issues
  Annex V.1  Antitrust rules and their implementation in
     specific countries
  Annex V.2  Case studies
Chapter VI.  
1,020k
pdf file
The effects of consolidation on payment and settlement systems
1.   Introduction
  2.   Types of consolidation
  3.   Causes of and obstacles to consolidation
  4.   The effects of consolidation
  5.   Conclusions
  Annex VI.1  TARGET
Working Party on Financial Sector Consolidation
Data Annex A: Patterns in consolidation transactions
Data Annex B: Patterns in the structure of the financial sector

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