The currency union was consequently expected to foster competition in the banking sector.40 In particular, a reduction in excess capacities and an increase in efficiency was expected.41 A single monetary policy and a single currency could partly take away some of the informational and funding advantage of domestic banks and therefore diminish the need to maintain banking relationships in every country.42 This might lead to a reduction of branches and increased cross-border competition within the euro area.
•  The economic expansion in the United States is continuing at a gradual pace, restrained by ongoing public and private deleveraging, global weakness and uncertainty related to fiscal negotiations. •  Europe remains in recession, with a somewhat more protracted downturn now expected than in October.