Banks have not only expanded their products and activities, but have also expanded their geographic reach, both domestically and globally. Within the United States, banks have expanded nationwide as barriers to interstate banking have been removed. This expansion should continue as banks exercise their new power to branch across state lines. A related domestic trend is the rapid consolidation within and between banking organizations.
Although some consolidation is undoubtedly related to the removal of barriers to interstate branching, it is also spurred by improved technology, strong competition in banking markets, and the drive by banks to reduce costs. Internationally, the globalization of banking has accelerated, driven by improved technology and the opening of economies in eastern Europe, Asia, Latin America, and other regions.