In the following, I will emphasise that the driving forces have not only posed threats but have also offered banks new opportunities. Consolidation in the European banking industry The driving factors mentioned before have changed the perceptions with respect to the efficiencies to be achieved through consolidation in the banking industry. Indeed, the number of mergers and acquisitions has increased considerably since the mid-1980s.
Mergers and acquisitions are, in turn, partly responsible for the reduction in capacity and the slight increase in concentration in the EU banking industry over the past decade. So far, the recent wave of consolidation has developed mainly within national industries. Cross-border mergers or acquisitions still seem to be the exception, although things have started to change.