But bank balance sheets have not yet been fully repaired, as illustrated by the high stock of non-performing loans in some parts of the euro area. So more work-out of these non-performing assets will have to take place, and the conditions for that will have to be put in place by the right policies and authorities.
The general argument mounted in support of cross-border banking is that it allows a bank to profitably utilise its knowledge, systems and skills in a new market. But is that best done by partnering with an existing bank, or entering the market on your own?