Banks must comply with standard prudential requirements while engaging in these activities and universal banks may also be able to control the equity participation in the industrial firms. The implementation of the relevant European Union directives and the rise of mergers and acquisitions between banks, securities companies and insurance companies support the universal nature of European banking.
The US and European banks are able to offer sophisticated financial products, establish international conglomerates putting pressure now on Asian banks to improve the product offerings in their own markets. Although universal banks already exist in many Asian countries, in general, Asia lags behind in this aspect. Not all Asian countries permit universal banking.