These firms increasingly operate across national borders and are subject to a wide range of regulatory regimes. As for the causes of all this merger and acquisition activity, overall, it appears that the most important forces encouraging financial consolidation are globalization of financial and nonfinancial markets, financial deregulation, improvements in information technology, and increased shareholder pressure for financial performance.
Because these forces are likely to continue, financial consolidation is likely to continue as well, although the pace may be interrupted by fluctuations in the macroeconomic cycle and other factors. The study considered possible future scenarios but concluded that the likelihood of specific future developments is impossible to assess with confidence. My own guess is that various patterns will emerge.