Thereby the capacity of bank customers to compare rates and charges across borders, without the need to worry about exchange risks will grow. This, should enhance competition among individual products. It is also likely that multinational firms will seek to consolidate Treasury operations, which were previously spread over many currency zones. Hence competition for customer relationships might increase, too.
The single currency will also change the behaviour of financial institutions, prompting them to think about the competitiveness of European and not just national markets.