In areas near national borders, small institutions, hitherto operating only locally or regionally, will be able to operate in markets that have not been accessible to them in the past, but at the same time they will likewise be affected by the keener competition.
However, banks will not only have to face growing interbank competition: as the euro will probably foster the growth of a much larger and more liquid securities market in Europe, securities markets may be expected to pose a significant competitive challenge to banks offering traditional forms of intermediated credit.