In this connection, the trend has been strengthened by the introduction of the single currency in Europe. Securitisation was already one of the dominant trends in the early and mid-nineties. The adoption of the euro has now brought about a further surge in securitisation and given an additional boost to disintermediation.
For the German credit institutions, the euro means that they no longer have the competitive advantage of the D-Mark, whereas for others it means that they no longer face the “D-Mark home currency” barrier to entering the market. Competition is becoming more and more intense within Europe and globally.