The global integration of the
world's banking markets
seems an inevitable, if not an
already accomplished, fact.
However, the accommodations
that global integration will force upon
U.S. banks may well be more disruptive and
anxiety-inducing than those experienced in
other sectors of the U.S. economy that have
been integrated into the global marketplace.
This article discusses the extent and nature of
foreign competition in U.S. banking and argues
that the increasing importance of foreign
banking organizations is primarily a consequence
of their superior capitalization.