/Users/andrea/_magisterarbeit/korpus/clean/testkorpus/1/file_11.html NN ----------------------------------------- : Sectoral JJ Activities NNS Social NP Dialogue NN SECTOR NN Home NP What's NP New NP About IN SECTOR NN Meetings NNS Publications NP Discussion NN Forum NP Contact NP Us NP Links NP Site NN Map VVP Quick RB link VV to TO sectors NNS . SENT Browse VV by IN theme NN . SENT Go VV to TO main JJ meeting NN page NN . SENT The DT employment NN impact NN of IN mergers NNS and CC acquisitions NNS in IN the DT banking NN and CC financial JJ services NNS sector NN Report NN for IN discussion NN at IN the DT Tripartite JJ Meeting VVG on IN the DT Employment NP Impact NP of IN Mergers NPS and CC Acquisitions NNS in IN the DT Banking NP and CC Financial NP Services NPS Sector NN Geneva NP , , 5 CD 9 CD February NP 2001 CD International NP Labour NN Office NP Geneva NP Copyright NP 2001 CD International NP Labour NN Organization NP ILO NP Report NP in IN pdf NN format NN Cover NP photograph NN . SENT Paul NP Montet NP To TO purchase VV this DT document NN , , click NN here RB Contents NNS Acknowledgements NNS and CC sources NNS Introduction NN 1 CD . SENT The DT banking NN and CC financial JJ services NNS sector NN Background NN The DT financial JJ services NNS sector NN . SENT Characteristics NNS , , role NN and CC general JJ trends NNS Factors NNS driving VVG M NP As IN Deregulation NN , , liberalization NN , , market NN integration NN and CC financial JJ crises NNS The DT race NN for IN size NN , , efficiency NN , , synergies NNS and CC profitability NN Information NN and CC communications NNS technologies NNS ICTs NP New NP market NN entrants NNS Consumer NN issues NNS Creating VVG shareholder NN value NN Bancassurance NP 2 CD . SENT Obstacles NNS to TO success NN in IN financial JJ services NNS M NP As IN The DT race NN for IN size NN An DT obstacle NN course NN . SENT Regulation NN Competition NN policy NN Resistance NN at IN the DT national JJ level NN Legal JJ status NN of IN financial JJ institutions NNS Inadequate JJ assessment NN of IN cultural JJ aspects NNS of IN M NP As IN Neglecting VVG the DT human JJ factor NN is VBZ a DT frequent JJ cause NN of IN failure NN 3 CD . SENT Employment NN effects NNS of IN M NP As IN Regional NP overviews NNS Africa NP Asia NP and CC the DT Pacific NP Western NP Europe NP Central NP and CC Eastern NP Europe NP Latin NP America NP and CC the DT Caribbean NP North NP America NP Thematic JJ overview NN M NP As RB imply VVP immediate JJ and CC direct JJ job NN losses NNS . SENT . SENT . SENT but CC generate VV other JJ jobs NNS Lay NP offs NNS as IN an DT anti JJ takeover NN tool NN Gender NN specific JJ effects NNS Training NP and CC reskilling NN associated VVN with IN M NP A DT related JJ change NN 4 CD . SENT Managing VVG downsizing NN related VVN to TO M NP A DT restructuring NN Policies NNS and CC practices NNS on IN worker NN displacement NN European NP Union NP Japan NP United NP States NPS Canada NP Australia NP International NP labour NN standards NNS relevant JJ to TO worker NN displacement NN 5 CD . SENT Impact NN of IN M NP As IN on IN working NN and CC employment NN conditions NNS M NP As RB , , remuneration NN and CC other JJ compensation NN issues NNS M NP As IN and CC working VVG time NN M NP As IN as IN factors NNS of IN stress NN and CC demotivation NN M NP As IN and CC job NN security NN 6 CD . SENT Social JJ dialogue NN in IN the DT context NN of IN M NP As IN Prerequisites NNS for IN effective JJ social JJ dialogue NN Institutional JJ arrangements NNS for IN social JJ dialogue NN Levels NP and CC scope NN of IN social JJ dialogue NN Overcoming VVG M NP A DT challenges NNS through IN social JJ dialogue NN Trade NP union NN action NN The DT role NN of IN the DT ILO NP 7 CD . SENT Summary NN and CC suggested VVD points NNS for IN discussion NN General NP trends NNS , , characteristics NNS and CC driving VVG factors NNS in IN M NP As IN Employment NP effects NNS Working NP and CC employment NN conditions NNS Social NP dialogue NN Suggested VVD points NNS for IN discussion NN General NP aspects NNS of IN M NP As IN Employment NP Working NP and CC employment NN conditions NNS Training NP Social NP dialogue NN ILO NP action NN Tables NP 1 CD . SENT 1 CD . SENT Bancassurance NP market NN share NN in IN western JJ Europe NP 1997 CD 3 CD . SENT 1 CD . SENT Japanese JJ bank NN mergers NNS 3 CD . SENT 2 LS . SENT Pre NP and CC post VV merger NN employment NN levels NNS in IN New NP Zealand NP 3 CD . SENT 3 LS . SENT Total JJ number NN of IN banks NNS in IN 15 CD EU NP countries NNS 3 CD . SENT 4 LS . SENT Shares NNS of IN total JJ banking NN assets NNS in IN 15 CD EU NP countries NNS 3 CD . SENT 5 CD . SENT Number NN of IN banks NNS in IN Nordic JJ countries NNS , , 1985 CD and CC 1998 CD 3 CD . SENT 6 CD . SENT Number NN of IN employees NNS and CC banking NN units NNS in IN the DT banking NN sector NN of IN the DT Czech NP Republic NP , , 1994 CD 99 CD 3 CD . SENT 7 CD . SENT Concentration NN in IN non JJ bank NN segments NNS of IN financial JJ services NNS , , United NP States NP 3 CD . SENT 8 CD . SENT Total JJ number NN of IN branches NNS and CC bank NN personnel NNS in IN 15 CD EU NP countries NNS 1993 CD 97 CD 3 CD . SENT 9 CD . SENT Chartered JJ bank NN employment NN in IN Canada NP and CC British NP Columbia NP permanent JJ , , full JJ time NN and CC part NN time NN 3 CD . SENT 10 CD . SENT Bank NP employment NN patterns NNS in IN European JJ Union NP countries NNS 3 CD . SENT 11 CD . SENT Financial JJ sector NN employment NN in IN Australia NP 3 CD . SENT 12 CD . SENT Bank NN employment NN in IN Canada NP and CC British NP Colombia NP , , 1995 CD 3 CD . SENT 13 CD . SENT Proportion NN of IN female JJ employees NNS and CC managers NNS in IN European JJ banks NNS , , 1995 CD 3 CD . SENT 14 CD . SENT Occupational JJ groups NNS by IN gender NN in IN British NP Columbia NP in IN four CD banks NNS proposing VVG to TO merge VV , , 1996 NP Boxes NPS Box NP 3 CD . SENT 1 CD . SENT Deregulation NN and CC financial JJ liberalization NN in IN Thailand NP Box NP 3 CD . SENT 2 LS . SENT Major JJ mergers NNS and CC acquisitions NNS in IN the DT banking NN sector NN of IN the DT Czech JJ Republic NP Box NP 3 CD . SENT 3 LS . SENT Union NN views NNS on IN the DT effects NNS of IN M NP As IN Acknowledgements NNS and CC sources NNS The DT information NN for IN this DT report NN was VBD derived VVN from IN a DT wide JJ range NN of IN sources NNS , , although IN it PP should MD be VB emphasized VVN that IN few JJ statistics NNS related VVN to TO employment NN impacts NNS of IN mergers NNS and CC acquisitions NNS in IN the DT sector NN under IN review NN were VBD available JJ . SENT Extensive JJ use NN was VBD made VVN of IN publications NNS , , press NN articles NNS , , websites NNS and CC grey JJ literature NN . SENT In IN addition NN , , valuable JJ information NN was VBD supplied VVN by IN a DT number NN of IN employers NNS and CC workers NNS organizations NNS . SENT The DT report NN was VBD prepared VVN by IN Claude NP Duchemin NP and CC John NP Sendanyoye NP of IN the DT Sectoral JJ Activities NNS Department NP , , on IN the DT basis NN of IN contributions NNS from IN Michael NP Mesfin NP Gabre NP of IN the DT InFocus NP Programme NN on IN Strengthening VVG Social NP Dialogue NN Chapter NP 6 CD and CC Emily NP Sims NP of IN the DT ILO NP Equality NN and CC Employment NP Branch NP . SENT Tan NP Peng NP Bo NP of IN the DT Bureau NP for IN Employers NP Activities NNS and CC Robert NP Kyloh NP of IN the DT Bureau NP for IN Workers NP Activities NNS reviewed VVD and CC commented VVD on IN the DT report NN , , while IN John NP Myers NP and CC William NP Ratteree NP of IN the DT Sectoral JJ Activities NNS Department NP provided VVD initial JJ editorial NN assistance NN . SENT The DT report NN is VBZ published VVN under IN the DT authority NN of IN the DT International NP Labour NN Office NP . SENT It PP goes VVZ without IN saying VVG that IN any DT attempt NN to TO identify VV the DT precise JJ relationship NN between IN employment NN and CC mergers NNS and CC acquisitions NNS is VBZ complicated VVN by IN other JJ concurrent JJ processes NNS under IN way NN in IN the DT financial JJ services NNS sector NN . SENT It PP is VBZ hoped VVN nevertheless RB that IN this DT report NN will MD provide VV a DT basis NN for IN more JJR detailed JJ research NN and CC reflection NN on IN a DT phenomenon NN that WDT is VBZ increasingly RB attracting VVG the DT attention NN of IN policy NN makers NNS , , employers NNS , , workers NNS , , researchers NNS and CC other JJ interested JJ parties NNS in IN the DT world NN of IN work NN . SENT Introduction NN This DT report NN has VHZ been VBN prepared VVN by IN the DT International NP Labour NN Office NN as IN the DT basis NN for IN discussions NNS at IN the DT Tripartite JJ Meeting VVG on IN the DT Employment NP Impact NP of IN Mergers NPS and CC Acquisitions NNS in IN the DT Banking NP and CC Financial NP Services NPS Sector NN , , to TO be VB held VVN at IN the DT ILO NP in IN Geneva NP from IN 5 CD 9 CD February NP 2001 CD . SENT The DT Governing VVG Body NN of IN the DT ILO NP decided VVD to TO convene VV this DT meeting NN at IN its PP$ 273 CD rd NN Session NP November NP 1998 CD as IN part NN of IN the DT programme NN of IN sectoral JJ meetings NNS for IN 2000 CD 01 CD . SENT At IN its PP$ 274 CD th NN Session NP March NP 1999 CD , , the DT Governing VVG Body NN decided VVN that IN the DT meeting NN should MD be VB composed VVN of IN 60 CD participants NNS and CC that IN the DT following VVG 20 CD countries NNS would MD be VB invited VVN to TO participate VV . SENT Argentina NP , , Belgium NP , , Canada NP , , Ghana NP , , India NP , , Japan NP , , Republic NP of IN Korea NP , , Luxembourg NP , , Mauritania NP , , Mauritius NP , , Nigeria NP , , Panama NP , , Russian NP Federation NP , , Slovakia NP , , Spain NP , , Switzerland NP , , Thailand NP , , United NP Arab NP Emirates NPS , , United NP States NPS and CC Venezuela NP . SENT A DT number NN of IN countries NNS were VBD included VVN in IN a DT reserve NN list NN from IN which WDT further JJR invitees NNS would MD be VB drawn VVN in IN the DT event NN that IN a DT government NN in IN the DT first JJ list NN declined VVD the DT invitation NN . SENT Chile NP , , China NP , , Costa NP Rica NP , , Dominica NP , , Dominican NP Republic NP , , Ecuador NP , , Finland NP , , France NP , , Germany NP , , Honduras NP , , Jordan NP , , Lebanon NP , , Malaysia NP , , Morocco NP , , Portugal NP , , Singapore NP and CC Tunisia NP . SENT Furthermore RB , , it PP was VBD agreed VVN that IN 20 CD employers NNS and CC 20 CD workers NNS representatives NNS would MD be VB selected VVN on IN the DT basis NN of IN consultation NN with IN the DT respective JJ groups NNS of IN the DT Governing VVG Body NN . SENT The DT Governing VVG Body NN decided VVN that IN the DT purpose NN of IN the DT Meeting VVG would MD be VB to TO exchange VV views NNS on IN the DT impact NN on IN employment NN of IN mergers NNS and CC acquisitions NNS in IN the DT banking NN and CC financial JJ services NNS sector NN , , using VVG a DT report NN prepared VVN by IN the DT Office NN as IN the DT basis NN for IN its PP$ discussions NNS . SENT to TO adopt VV conclusions NNS that WDT include VVP proposals NNS for IN action NN by IN governments NNS , , by IN employers NNS and CC workers NNS organizations NNS at IN the DT national JJ level NN and CC by IN the DT ILO NP . SENT and CC to TO adopt VV a DT report NN on IN its PP$ discussion NN . SENT The DT Meeting VVG may MD also RB adopt VV resolutions NNS . SENT This DT Meeting VVG is VBZ part NN of IN the DT ILO NP s PP Sectoral JJ Activities NNS Programme NN , , the DT aim NN of IN which WDT is VBZ to TO assist VV governments NNS and CC employers NNS and CC workers NNS organizations NNS to TO develop VV their PP$ capacities NNS to TO deal VV equitably RB and CC effectively RB with IN the DT social JJ and CC labour NN problems NNS of IN particular JJ economic JJ sectors NNS . SENT The DT Programme NN also RB alerts VVZ the DT ILO NP to TO specific JJ sectoral JJ social JJ and CC labour NN issues NNS primarily RB through IN tripartite JJ meetings NNS , , which WDT bring VVP together RB a DT cross NN section NN of IN government NN , , employers NNS and CC workers NNS representatives NNS from IN countries NNS that WDT are VBP prominent JJ in IN a DT given VVN sector NN . SENT In IN line NN with IN the DT reorientation NN of IN the DT ILO NP around IN strategic JJ objectives NNS since IN 1999 CD , , these DT meetings NNS also RB set VVD out RP to TO strengthen VV tripartism NN and CC promote VV social JJ dialogue NN at IN the DT international JJ level NN . SENT 1 LS . SENT The DT banking NN and CC financial JJ services NNS sector NN Background NN Mergers NP and CC acquisitions NNS M NP As RB are VBP a DT global JJ phenomenon NN , , with IN an DT estimated JJ 4 CD , , 000 CD deals NNS taking VVG place NN every DT year NN . SENT 1 CD However RB , , they PP are VBP not RB a DT recent JJ development NN . SENT four CD periods NNS of IN high JJ merger NN activity NN , , also RB known VVN as IN merger NN waves NNS , , occurred VVD in IN the DT United NP States NPS 1897 CD 1904 CD , , 1916 CD 29 CD , , 1965 CD 69 CD and CC 1984 CD 89 CD before IN the DT current JJ one NN that WDT began VVD in IN the DT early JJ 1990 CD s PP . SENT This DT latter JJ wave NN has VHZ attained VVN exceptional JJ levels NNS in IN terms NNS of IN sheer JJ value NN and CC volume NN of IN transactions NNS . SENT In IN the DT United NP States NPS , , M NP As RB have VHP been VBN instrumental JJ in IN the DT decline NN in IN the DT number NN of IN banking NN organizations NNS between IN 1980 CD and CC 1997 CD they PP decreased VVD from IN 12 CD , , 333 CD to TO 7 CD , , 122 CD . SENT Europe NP has VHZ also RB experienced VVN similar JJ M NP As IN . SENT examples NNS include VVP . SENT Unicredito NP Credito NP Italiano NP and CC Generale NP Bank NP Fortis NP in IN 1998 CD . SENT and CC UBS NP SBS NP , , ING NP BBL NP , , Cr NP dit NP Suisse NP Winterthur NP Group NP and CC Vereinsbank NP Hypobank NP in IN 1997 CD . SENT Between IN 1980 CD and CC 1995 CD the DT number NN of IN banking NN establishments NNS in IN Europe NP fell VVD , , particularly RB in IN Denmark NP 57 CD per IN cent NN and CC France NP 43 CD per IN cent NN . SENT Proponents NNS of IN financial JJ sector NN consolidation NN argue VVP that DT institutions NNS need VVP size NN to TO spread VV growing VVG information NN technology NN and CC processing NN costs NNS over IN larger JJR revenue NN bases NNS . SENT Another DT key JJ factor NN is VBZ the DT need NN for IN greater JJR market NN capitalization NN , , with IN governments NNS and CC financial JJ sector NN regulators NNS accepting VVG financial JJ operators NNS arguments NNS that IN greater JJR size NN is VBZ crucial JJ to TO cost VV cutting VVG and CC strong JJ national JJ institutions NNS . SENT Smaller JJR countries NNS are VBP also RB encouraging VVG consolidation NN to TO counter VV growing VVG competition NN from IN larger JJR institutions NNS in IN neighbouring VVG countries NNS . SENT According VVG to TO UNCTAD NP , , 2 CD the DT value NN of IN worldwide JJ M NP As RB has VHZ grown VVN dramatically RB during IN the DT past JJ two CD decades NNS 1980 CD 99 CD , , at IN the DT rate NN of IN 42 CD per IN cent NN a DT year NN . SENT In IN 1999 CD , , their PP$ completed VVN value NN was VBD about RB 2 CD . SENT 3 CD trillion CD , , representing VVG 24 CD , , 000 CD deals NNS . SENT Developed JJ countries NNS are VBP the DT most RBS important JJ sellers NNS and CC buyers NNS in IN cross NN border NN M NP As RB , , accounting VVG for IN close NN to TO 90 CD per IN cent NN and CC 95 CD per IN cent NN of IN sales NNS purchases NNS in IN 1998 CD 99 CD , , respectively RB . SENT Of IN the DT 5 CD 10 CD per IN cent NN of IN sales NNS purchases NNS involving VVG developing VVG countries NNS , , the DT bulk JJ 70 CD per IN cent NN originates VVZ in IN Latin NP America NP and CC the DT Caribbean NP . SENT The DT value NN of IN cross NN border NN M NP A NP sales NNS by IN developing VVG countries NNS increased VVN from IN 12 CD billion CD in IN 1991 CD 95 CD to TO 61 CD billion CD in IN 1996 CD 99 CD . SENT M NP A NP purchases NNS by IN firms NNS from IN developing VVG countries NNS rose VVD from IN an DT average NN of IN 8 CD billion CD in IN 1991 CD 95 CD to TO 30 CD billion CD in IN 1996 CD 99 CD . SENT Acquisitions NNS are VBP considerably RB more RBR important JJ than IN mergers NNS in IN developing VVG and CC transition NN countries NNS . SENT In IN developing VVG countries NNS , , cross NN border NN M NP A NP sales NNS fell VVD in IN 1999 CD , , largely RB caused VVN by IN reduced JJ privatization NN activity NN in IN Latin NP America NP , , where WRB the DT value NN of IN cross NN border NN M NP As RB fell VVD from IN 64 CD billion CD in IN 1998 CD to TO 37 CD billion CD . SENT In IN developing VVG Asia NP , , they PP continued VVD to TO grow VV , , including VVG in IN the DT countries NNS most RBS affected VVN by IN the DT 1997 CD financial JJ crisis NN . SENT The DT value NN of IN cross NN border NN M NP A NP sales NNS in IN Central NP and CC Eastern NP Europe NP doubled VVD between IN 1998 CD and CC 1999 CD from IN 5 CD billion CD to TO 10 CD billion CD . SENT This DT M NP A DT driven VVN consolidation NN is VBZ raising VVG important JJ public JJ policy NN concerns NNS , , notably RB with IN respect NN to TO employment NN . SENT Indeed RB , , the DT announcement NN of IN a DT merger NN is VBZ usually RB accompanied VVN by IN an DT announcement NN of IN cost NN cutting VVG redundancies NNS in IN the DT merging VVG organizations NNS , , often RB on IN a DT massive JJ scale NN . SENT To TO gain VV full JJ merger NN benefits NNS , , two CD overlapping JJ organizations NNS are VBP compressed VVN into IN one CD , , trimming VVG duplicated VVN operations NNS which WDT entails VVZ redundancies NNS at IN all DT levels NNS . SENT It PP is VBZ nevertheless RB difficult JJ to TO disentangle VV the DT employment NN effects NNS of IN M NP As IN from IN those DT of IN other JJ factors NNS such JJ as IN increased JJ competitive JJ pressures NNS , , automation NN or CC the DT introduction NN of IN information NN and CC communication NN technologies NNS which WDT are VBP similarly RB inciting VVG organizations NNS to TO restructure VV even RB in IN the DT absence NN of IN M NP As RB . SENT The DT Director NP General NP s PP report VVP , , Decent NP work NN , , noted VVD that IN . SENT Policies NNS of IN economic JJ liberalization NN have VHP altered VVN the DT relationship NN between IN the DT State NP , , labour NN and CC business NN . SENT Economic JJ outcomes NNS are VBP now RB influenced VVN more JJR by IN market NN forces NNS than IN by IN mediation NN through IN social JJ actors NNS , , legal JJ norms NNS or CC state NN intervention NN . SENT International JJ capital NN markets NNS have VHP moved VVN out RP of IN alignment NN with IN national JJ labour NN markets NNS , , creating VVG asymmetrical JJ risks NNS and CC benefits NNS for IN capital NN and CC labour NN . SENT There EX is VBZ a DT feeling NN that IN the DT real JJ economy NN and CC the DT financial JJ systems NNS have VHP lost VVN touch NN with IN each DT other JJ . SENT 3 LS A DT key JJ element NN of IN the DT creative JJ destruction NN hypothesis NN advanced VVD as IN a DT necessary JJ precondition NN to TO full JJ exploitation NN of IN the DT possibilities NNS of IN the DT new JJ economy NN is VBZ widespread JJ rationalization NN and CC restructuring NN in IN all DT sectors NNS . SENT Finance NP is VBZ a DT key JJ facilitator NN in IN this DT process NN . SENT In IN view NN of IN the DT rapid JJ development NN in IN M NP As IN worldwide RB , , some DT information NN in IN this DT report NN all RB received VVD before IN mid JJ October NP 2000 CD will MD be VB outdated VVN when WRB the DT Tripartite JJ Meeting VVG is VBZ held VVN in IN February NP 2001 CD . SENT Nonetheless RB the DT report NN provides VVZ an DT overview NN of IN the DT sector NN at IN a DT given VVN time NN and CC pinpoints VVZ the DT principal JJ forces NNS shaping VVG its PP$ performance NN and CC driving VVG the DT consolidation NN process NN . SENT it PP is VBZ designed VVN to TO serve VV as IN a DT basis NN for IN discussion NN of IN employment NN trends NNS in IN the DT banking NN and CC financial JJ services NNS sector NN . SENT The DT financial JJ services NNS sector NN . SENT Characteristics NNS , , role NN and CC general JJ trends NNS Financial NP services NNS support VVP employment NN in IN two CD ways NNS . SENT as IN a DT source NN for IN high JJ quality NN employment NN and CC through IN a DT pivotal JJ role NN in IN providing VVG credit NN to TO other JJ sectors NNS . SENT A DT well RB functioning VVG financial JJ sector NN is VBZ essential JJ in IN financing VVG the DT operations NNS of IN an DT economy NN through IN both DT intermediation NN borrowing NN money NN from IN one CD sector NN to TO on RB lend VV to TO another DT and CC through IN auxiliary JJ services NNS such JJ as IN securities NNS broking NN and CC loan NN flotation NN , , where WRB financial JJ enterprises NNS arrange VV the DT processes NNS of IN funding NN but CC do VVP not RB step VV between IN the DT borrower NN and CC lender NN . SENT 4 LS The DT institutions NNS , , services NNS and CC products NNS that WDT comprise VVP the DT financial JJ sector NN vary VVP from IN country NN to TO country NN , , but CC generally RB include VV . SENT the DT central JJ bank NN . SENT depository JJ organizations NNS such JJ as IN banks NNS , , building VVG societies NNS or CC mortgage NN banks NNS . SENT credit NN unions NNS or CC cooperatives NNS . SENT insurance NN and CC pension NN funds NNS . SENT general JJ financiers NNS . SENT cash NN management NN firms NNS . SENT and CC others NNS engaged VVN in IN financial JJ intermediation NN . SENT The DT last JJ category NN might MD include VV securitizers NNS , , investment NN companies NNS , , leasing VVG companies NNS , , hire VV purchase NN and CC the DT provision NN of IN personal JJ and CC consumer NN credit NN . SENT In IN some DT instances NNS , , a DT wider JJR perspective NN needs VVZ to TO incorporate VV not RB only RB the DT finance NN sector NN but CC also RB the DT business NN services NNS that WDT support VVP its PP$ operation NN . SENT The DT financial JJ system NN in IN any DT country NN has VHZ three CD overlapping JJ components NNS financial JJ enterprises NNS such JJ as IN banks NNS and CC regulatory JJ authorities NNS . SENT the DT financial JJ markets NNS for IN instance NN , , the DT bond NN market NN and CC their PP$ participants NNS issuers NNS and CC investors NNS . SENT and CC the DT payment NN system NN cash NN , , cheque NN and CC electronic JJ means NNS for IN payments NNS and CC its PP$ participants NNS e NN . SENT g NN . SENT banks NNS . SENT The DT interaction NN of IN these DT components NNS enables VVZ funds NNS for IN investment NN or CC consumption NN to TO be VB made VVN available JJ from IN savings NNS in IN other JJ parts NNS of IN the DT national JJ or CC , , increasingly RB , , international JJ economy NN . SENT Financial JJ institutions NNS mainly RB engage VVP in IN intermediation NN and CC provision NN of IN financial JJ services NNS for IN example NN , , by IN taking VVG deposits NNS , , borrowing NN and CC lending NN , , supplying VVG all DT types NNS of IN insurance NN cover NN , , leasing VVG and CC investing VVG in IN financial JJ assets NNS . SENT Banks NNS in IN most JJS countries NNS are VBP the DT largest JJS deposit NN takers NNS and CC financial JJ services NNS providers NNS , , but CC the DT market NN shares NNS and CC power NN of IN other JJ organizations NNS like IN insurance NN companies NNS is VBZ increasing VVG . SENT Banks NNS and CC insurers NNS are VBP also RB among IN the DT largest JJS and CC most RBS profitable JJ enterprises NNS in IN both DT domestic JJ and CC global JJ markets NNS . SENT This DT is VBZ hardly RB surprising JJ , , since IN money NN , , the DT business NN of IN financial JJ services NNS , , went VVD global JJ before IN globalization NN became VVD a DT buzzword NN . SENT however RB , , liberalization NN and CC technological JJ advances NNS are VBP increasingly RB pushing VVG the DT sector NN towards IN greater JJR globalization NN in IN which WDT M NP As RB are VBP both CC a DT cause NN and CC a DT consequence NN . SENT Sixty CD four CD banks NNS and CC 53 CD insurance NN companies NNS figure VVP among IN Fortune NP Magazine NP s PP Global NP 500 CD . SENT Observers NNS believe VVP that DT cross NN border NN M NP As IN in IN the DT financial JJ services NNS will MD be VB the DT next JJ phase NN once IN internal JJ consolidation NN is VBZ complete JJ and CC the DT drive NN towards IN higher JJR concentration NN will MD only RB end VV when WRB there EX are VBP no DT more JJR acquisition NN targets NNS . SENT Jacques NP Attali NP , , former JJ President NP of IN the DT European NP Bank NP for IN Reconstruction NN and CC Development NP , , says VVZ that IN in IN 20 CD years NNS , , there EX will MD be VB no RB more JJR than IN four CD or CC five CD global JJ firms NNS in IN each DT sector NN . SENT Alongside RB , , there EX will MD be VB millions NNS of IN small JJ temporary JJ enterprises NNS subcontracted VVN by IN the DT large JJ ones NNS . SENT David NP Komansky NP , , CEO NN of IN Merrill NP Lynch NP , , also RB believes VVZ only RB six CD to TO eight CD global JJ banks NNS will MD soon RB be VB competing VVG on IN the DT world NN s PP financial JJ markets NNS , , with IN regional JJ entities NNS , , notably RB in IN Europe NP and CC Asia NP , , existing VVG side NN by IN side NN with IN these DT big JJ international JJ players NNS . SENT Others NNS believe VVP M NP As RB will MD continue VV given VVN that IN companies NNS restructure VVP for IN various JJ reasons NNS including VVG poor JJ performance NN or CC changes NNS in IN business NN strategies NNS . SENT Rapid JJ Internet NN development NN makes VVZ medium JJ term NN predictions NNS regarding VVG the DT nature NN and CC pace NN of IN M NP As IN in IN the DT financial JJ services NNS particularly RB risky JJ as IN technology NN is VBZ increasing VVG the DT ability NN of IN newcomers NNS to TO contest VV certain JJ niche NN markets NNS and CC intensifying VVG the DT competitive JJ pressures NNS that WDT are VBP contributing VVG to TO sectoral JJ consolidation NN . SENT A DT 1999 CD KPMG NP survey NN of IN company NN directors NNS whose WP$ companies NNS had VHD participated VVN in IN major JJ cross NN border NN M NP A NP deals NNS between IN 1996 CD and CC 1998 CD found VVN that IN 82 CD per IN cent NN of IN respondents NNS believed VVD the DT deals NNS they PP had VHD been VBN involved JJ in IN had VHD been VBN a DT success NN . SENT However RB , , this DT was VBD a DT subjective JJ estimation NN as IN only RB 45 CD per IN cent NN of IN the DT companies NNS had VHD undertaken VVN formal JJ post NN deal NN reviews NNS . SENT Benchmark JJ analyses NNS based VVN on IN comparative JJ share NN performance NN one CD year NN after IN deal NN completion NN found VVD that IN only RB 17 CD per IN cent NN of IN deals NNS had VHD actually RB added VVN value NN to TO the DT combined JJ company NN , , 30 CD per IN cent NN had VHD produced VVN no DT discernible JJ difference NN and CC 53 CD per IN cent NN had VHD actually RB destroyed VVN shareholder NN value NN . SENT Companies NNS focusing VVG attention NN on IN finance NN or CC legal JJ issues NNS to TO the DT detriment NN of IN other JJ areas NNS were VBD found VVN 15 CD per IN cent NN less RBR likely JJ than IN average NN to TO have VH a DT successful JJ deal NN . SENT 5 CD Factors NNS driving VVG M NP As IN Academics NNS and CC other JJ observers NNS advance NN value NN maximization NN , , 6 CD managerial JJ ego NN , , mimicry NN , , the DT need NN to TO reduce VV uncertainty NN and CC defensive JJ considerations NNS acquire VV to TO avoid VV being VBG acquired VVN . SENT ensure VV that DT growth NN keeps VVZ up RP with IN that IN of IN competitors NNS , , etc FW . SENT and CC high JJ levels NNS of IN corporate JJ reserves NNS and CC share NN valuations NNS among IN the DT motives NNS behind IN consolidation NN in IN financial JJ services NNS . SENT Supporters NNS of IN M NP As RB allege VVP that IN they PP facilitate VVP synergies NNS between IN merged JJ organizations NNS , , generate VV efficiency NN improvements NNS and CC increase NN competitiveness NN . SENT Indeed RB , , they PP hold VVP that IN mergers NNS , , by IN increasing VVG economies NNS of IN scale NN and CC spreading VVG costs NNS over IN a DT larger JJR customer NN base NN , , enable VV financial JJ operators NNS to TO provide VV services NNS at IN lower JJR prices NNS . SENT Demonstrating VVG that IN M NP As RB improve VV efficiency NN is VBZ thus RB central JJ to TO making VVG the DT case NN for IN the DT consumer NN benefits NNS of IN mergers NNS and CC in IN assessing VVG their PP$ potential JJ impact NN on IN consumers NNS . SENT 7 CD If IN mergers NNS improve VVP efficiency NN , , then RB larger JJR , , combined JJ firms NNS may MD be VB expected VVN to TO pass VV some DT savings NNS on IN to TO consumers NNS through IN lower JJR prices NNS or CC improved JJ service NN . SENT If IN mergers NNS are VBP primarily RB cost VV cutting VVG exercises NNS , , involving VVG job NN cuts NNS and CC branch NN closures NNS , , the DT impact NN on IN consumers NNS is VBZ most RBS likely JJ to TO be VB a DT lowering VVG in IN the DT quantity NN and CC quality NN of IN services NNS . SENT individuals NNS are VBP affected VVN by IN branch NN closures NNS in IN rural JJ regions NNS and CC low JJ income NN urban JJ neighbourhoods NNS and CC have VH to TO bear VV the DT brunt NN of IN a DT generalized VVN decline NN in IN quality NN resulting VVG from IN reduced JJ effort NN in IN certain JJ product NN lines NNS or CC service NN modes NNS e NN . SENT g NN . SENT teller NN service NN , , cheque NN cashing VVG , , transaction NN and CC other JJ basic JJ services NNS . SENT Those DT opposing VVG financial JJ sector NN M NP As RB strongly RB contest VV their PP$ consumer NN gains NNS and CC maintain VV that IN they PP only RB result VVP in IN employment NN losses NNS and CC diminishing VVG access NN to TO services NNS . SENT Claims NNS that IN small JJ businesses NNS generally RB agreed VVD to TO generate VV most JJS employment NN worldwide RB also RB benefit VV from IN mergers NNS have VHP met VVN with IN considerable JJ scepticism NN among IN those DT businesses NNS themselves PP . SENT Studies NNS have VHP indeed RB revealed VVN that IN larger JJR financial JJ institutions NNS tend VVP to TO charge VV more JJR and CC higher JJR fees NNS than IN their PP$ smaller JJR counterparts NNS and CC note VVP an DT inverse JJ relationship NN between IN the DT sizes NNS of IN financial JJ institutions NNS and CC their PP$ loan NN portfolios NNS to TO small JJ businesses NNS . SENT Assertions NNS that IN size NN generates VVZ economies NNS of IN scale NN essential JJ to TO compete VV in IN global JJ markets NNS have VHP similarly RB been VBN disputed VVN on IN the DT grounds NNS that IN size NN is VBZ irrelevant JJ to TO international JJ competitiveness NN and CC cross VV border NN mergers NNS so RB far RB rare JJ among IN financial JJ M NP As IN outside IN the DT Nordic JJ region NN would MD be VB more RBR logical JJ to TO international JJ competitiveness NN . SENT It PP has VHZ been VBN argued VVN from IN a DT pro JJ merger NN perspective NN that WDT , , rather RB than IN size NN problems NNS , , banks NNS have VHP excess JJ capacity NN in IN their PP$ domestic JJ markets NNS , , which WDT drives VVZ up RP their PP$ costs NNS , , making VVG them PP uncompetitive NN both CC domestically RB and CC internationally RB . SENT According VVG to TO this DT argument NN , , mergers NNS enable VVP rationalization NN of IN networks NNS and CC associated VVN cost NN reductions NNS . SENT Whatever WDT the DT arguments NNS , , many JJ countries NNS competition NN policy NN in IN the DT financial JJ sector NN is VBZ tending VVG towards IN an DT easing NN of IN regulations NNS and CC the DT elimination NN of IN obstacles NNS between IN different JJ market NN segments NNS to TO promote VV greater JJR competition NN among IN financial JJ institutions NNS . SENT A DT paradox NN of IN these DT policy NN changes NNS is VBZ that IN they PP seem VVP to TO be VB encouraging VVG concentration NN and CC formation NN of IN oligopolies NNS , , rather RB than IN increased JJ competition NN , , although IN the DT ability NN of IN technology NN to TO lower JJR entry NN barriers NNS to TO new JJ types NNS of IN financial JJ service NN providers NNS somewhat RB reduces VVZ the DT power NN of IN concentration NN . SENT Furthermore RB , , United NP States NPS and CC European JJ case NN studies NNS suggest VVP that IN despite IN the DT fact NN that IN M NP As IN in IN the DT financial JJ industry NN may MD be VB partly RB driven VVN by IN potential JJ efficiency NN gains NNS , , managers NNS and CC governments NNS , , who WP appear VVP to TO have VH more JJR influence NN over IN consolidation NN decisions NNS for IN financial JJ institutions NNS than IN for IN non JJ financial JJ firms NNS , , may MD have VH other JJ motives NNS . SENT 8 CD Empire NN building NN is VBZ included VVN among IN possible JJ non JJ value NN maximizing VVG motives NNS given VVN that IN executive JJ compensation NN tends VVZ to TO increase VV with IN firm NN size NN , , although IN part NN of IN the DT higher JJR compensation NN of IN managers NNS of IN larger JJR institutions NNS rewards VVZ greater JJR skill NN and CC outcomes NNS . SENT Banking NN organizations NNS may MD overpay VV for IN acquisitions NNS when WRB corporate JJ governance NN structures NNS are VBP insufficient JJ to TO align VV managerial JJ incentives NNS with IN those DT of IN owners NNS . SENT what WP is VBZ more JJR , , management NN teams NNS with IN large JJ ownership NN stakes NNS often RB block VV outside JJ acquisitions NNS . SENT Many JJ financial JJ executives NNS argue VVP that IN preventing VVG consolidation NN and CC the DT efficiency NN gains VVZ M NP As RB make VV possible JJ would MD be VB tantamount JJ to TO forcing VVG enterprises NNS to TO engage VV in IN social JJ policy NN through IN retaining VVG unnecessary JJ levels NNS of IN employment NN and CC preserving VVG distribution NN outlets NNS that WDT would MD be VB redundant JJ in IN the DT event NN of IN a DT merger NN . SENT They PP therefore RB believe VVP that IN M NP As RB are VBP part NN of IN necessary JJ restructuring NN to TO improve VV efficient JJ use NN of IN resources NNS which WDT can MD only RB be VB beneficial JJ for IN long JJ term NN employment NN . SENT But CC opponents NNS stress VVP the DT fact NN that IN financial JJ sector NN operators NNS lack VVP transparency NN and CC accountability NN with IN respect NN to TO the DT social JJ and CC economic JJ impact NN of IN sectoral JJ consolidation NN . SENT They PP argue VVP that IN privately RB owned VVN financial JJ institutions NNS perform VVP essential JJ public JJ functions NNS and CC so RB government NN regulation NN is VBZ the DT corollary NN of IN the DT rather RB privileged JJ and CC profitable JJ positions NNS these DT companies NNS enjoy VVP . SENT In IN most JJS countries NNS , , the DT scope NN of IN regulation NN relative JJ to TO M NP As RB is VBZ narrowly RB focused VVN on IN financial JJ probity NN and CC competition NN issues NNS . SENT however RB , , in IN some DT countries NNS such JJ as IN the DT United NP States NPS a DT degree NN of IN socio NP economic JJ accountability NN exists VVZ . SENT The DT Community NP Reinvestment NP Act NP CRA NP provides VVZ benchmarks NNS under IN which WDT bank NN performance NN on IN loans NNS , , investment NN and CC consumer NN service NN is VBZ measured VVN whenever WRB banks NNS apply VVP to TO expand VV their PP$ operations NNS . SENT Critics NNS of IN mergers NNS among IN financial JJ service NN companies NNS believe VVP that IN an DT adaptation NN of IN this DT approach NN is VBZ needed VVN to TO ensure VV consideration NN of IN the DT employment NN effects NNS of IN organizational JJ changes NNS and CC to TO enhance VV transparency NN and CC accountability NN . SENT Similarly RB , , systematic JJ tracking NN of IN banks NNS transactions NNS with IN the DT small JJ business NN community NN may MD now RB be VB timely JJ . SENT Deregulation NN , , liberalization NN , , market NN integration NN and CC financial JJ crises NNS The DT financial JJ industry NN used VVN to TO be VB highly RB regulated VVN and CC compartmentalized VVN even RB within IN domestic JJ markets NNS . SENT With IN changes NNS spurred VVN on IN by IN advances NNS in IN information NN and CC communications NN technologies NNS and CC the DT expansion NN in IN international JJ trade NN , , this DT type NN of IN market NN organization NN was VBD considered VVN an DT obstacle NN to TO economic JJ modernization NN . SENT In IN December NP 1997 CD , , 102 CD countries NNS signed VVD an DT agreement NN to TO free JJ trade NN in IN financial JJ services NNS under IN the DT auspices NNS of IN the DT World NP Trade NP Organization NP WTO NP . SENT As RB in IN many JJ other JJ sectors NNS of IN the DT economy NN , , M NP As IN in IN the DT banking NN and CC financial JJ services NNS sector NN are VBP a DT driving VVG force NN behind IN and CC a DT consequence NN of IN globalization NN . SENT Global JJ consolidation NN is VBZ accompanying VVG and CC strengthening VVG the DT internationalization NN of IN capital NN markets NNS , , as IN institutional JJ investors NNS and CC pension NN funds NNS increasingly RB demand VVP rapid JJ access NN to TO worldwide JJ financing NN sources NNS and CC investment NN opportunities NNS . SENT Dramatic JJ advances NNS in IN technology NN , , facilitating VVG easier JJR and CC faster JJR access NN to TO information NN , , mean VVP that DT investors NNS are VBP almost RB instantaneously RB aware JJ of IN corporate JJ performance NN in IN different JJ markets NNS . SENT Nimble JJ newcomers NNS armed VVN with IN a DT tight JJ business NN focus NN and CC strong JJ consumer NN brands NNS are VBP harnessing VVG the DT power NN of IN technology NN to TO take VV advantage NN of IN deregulation NN and CC liberalization NN and CC gain VV a DT market NN share NN , , thereby RB increasing VVG pressure NN on IN profit NN margins NNS of IN established JJ institutions NNS . SENT Some DT have VHP argued VVN that IN financial JJ services NNS giants NNS , , especially RB banks NNS , , should MD emulate VV these DT new JJ entrants NNS , , breaking VVG themselves PP up RP and CC focusing VVG on IN their PP$ constituent JJ businesses NNS . SENT others NNS believe VVP this DT would MD overlook VV the DT real JJ advantage NN of IN incumbency NN . SENT scale NN , , reach NN and CC enduring VVG relationships NNS with IN huge JJ numbers NNS of IN customers NNS . SENT In IN Europe NP , , integrating VVG financial JJ service NN markets NNS and CC facilitating VVG cross NN border NN provision NN of IN financial JJ services NNS are VBP a DT primary JJ objective NN of IN the DT European NP Monetary NP Union NP EMU NN . SENT Mergers NNS have VHP so RB far RB been VBN overwhelmingly RB domestic JJ , , directed VVN at IN creating VVG national JJ champions NNS . SENT However RB , , with IN the DT completion NN of IN the DT single JJ financial JJ market NN in IN the DT European NP Union NP EU NP , , consolidation NN across IN the DT whole JJ area NN is VBZ expected VVN to TO speed VV up RP . SENT While IN wholesale JJ banking NN services NNS to TO large JJ corporations NNS are VBP already RB global JJ , , retail JJ banking NN has VHZ been VBN , , until IN recently RB , , overwhelmingly RB domestic JJ , , with IN cross NN border NN transactions NNS accounting VVG for IN only RB 1 CD per IN cent NN of IN total JJ volumes NNS . SENT Some DT banks NNS have VHP chosen VVN the DT Internet NN rather RB than IN mergers NNS or CC the DT opening NN of IN branches NNS as IN their PP$ route NN into IN cross NN border NN retail JJ business NN . SENT Introduction NN of IN the DT euro NP and CC European NP Commission NP moves VVZ to TO speed VV up RP harmonization NN of IN EU NP regulation NN and CC the DT supervision NN of IN financial JJ markets NNS are VBP expected VVN to TO accelerate VV market NN changes NNS and CC increase NN competition NN and CC efficiency NN . SENT But CC many JJ bankers NNS are VBP concerned VVN that IN , , with IN entry NN costs NNS greatly RB reduced VVD because IN of IN the DT Internet NN , , monetary JJ union NN opens VVZ national JJ financial JJ markets NNS to TO competitors NNS who WP can MD cherry NN pick VV profitable JJ segments NNS with IN the DT result NN that IN banks NNS with IN low JJ returns NNS on IN capital NN increasingly RB risk VV being VBG taken VVN over RP by IN predators NNS focusing VVG solely RB on IN shareholder NN value NN . SENT Nevertheless RB cross NN border NN M NP As IN in IN Europe NP are VBP inhibited VVN by IN national JJ differences NNS in IN customers NNS financial JJ service NN needs VVZ and CC how WRB they PP are VBP met VVN . SENT British JJ and CC Spanish JJ consumers NNS , , for IN example NN , , roll NN over IN credit NN card NN debt NN each DT month NN while IN Germans NNS typically RB get VVP credit NN through IN overdrafts NNS , , using VVG debit NN cards NNS for IN purchases NNS . SENT and CC German NP and CC Netherlands NP mortgages NNS are VBP at IN a DT fixed JJ rate NN , , whereas IN 80 CD per IN cent NN are VBP variable JJ in IN Spain NP . SENT According VVG to TO Heikki NP Koskenkyl NP , , head NN of IN the DT Financial NP Markets NPS Department NP at IN the DT Bank NP of IN Finland NP , , various JJ segments NNS of IN the DT EU NP financial JJ markets NNS are VBP , , to TO different JJ degrees NNS , , already RB experiencing VVG the DT effects NNS of IN the DT euro NP . SENT Since IN its PP$ launch NN , , the DT idea NN of IN a DT single JJ money NN market NN has VHZ gained VVN momentum NN with IN short JJ term NN money NN markets NNS , , three CD month NN interest NN rates NNS and CC even RB long JJ term NN government NN bond NN rates NNS converging VVG rapidly RB . SENT With IN the DT consolidation NN of IN national JJ financial JJ markets NNS well RB advanced JJ , , many JJ expect VVP that IN the DT next JJ stage NN will MD shift VV M NP As IN towards IN creating VVG pan VV European JJ institutions NNS . SENT Financial JJ crises NNS , , often RB a DT result NN of IN badly RB executed VVN liberalization NN programmes NNS , , have VHP given VVN a DT boost NN to TO M NP As IN . SENT Deregulation NN has VHZ intensified VVN competition NN via IN two CD mechanisms NNS . SENT by IN opening VVG the DT sector NN to TO new JJ entrants NNS foreign JJ banks NNS and CC non JJ banks NNS and CC easing VVG the DT rules NNS previously RB preventing VVG expansion NN into IN various JJ financial JJ segments NNS retail JJ banking NN , , investment NN merchant NN banking NN , , etc FW . SENT . SENT and CC by IN encouraging JJ development NN of IN new JJ products NNS and CC convergence NN in IN services NNS provided VVN by IN different JJ types NNS of IN financial JJ operators NNS . SENT These DT developments NNS have VHP intensified VVN competition NN , , thereby RB reducing VVG operating VVG margins NNS and CC profitability NN . SENT Financial JJ institutions NNS compensate VV for IN the DT erosion NN in IN margins NNS through IN a DT scramble NN for IN volumes NNS and CC easing VVG of IN credit NN standards NNS which WDT leads VVZ to TO a DT deterioration NN in IN loan NN portfolios NNS . SENT Property NN bubbles NNS often RB form VVP through IN this DT sort NN of IN sequence NN . SENT Given VVN the DT importance NN of IN the DT financial JJ sector NN to TO any DT country NN s PP economic JJ well RB being JJ , , the DT risk NN of IN a DT sectoral JJ meltdown NN usually RB has VHZ governments NNS scrambling VVG to TO intervene VV . SENT sometimes RB they PP encourage VVP sound JJ institutions NNS to TO merge VV or CC acquire VV distressed JJ rivals NNS to TO reduce VV sectoral JJ capacity NN , , increase NN margins NNS for IN surviving VVG institutions NNS , , thus RB hoping VVG to TO restore VV some DT health NN to TO the DT financial JJ system NN . SENT Many JJ industrialized JJ countries NNS experienced VVD such JJ crises NNS in IN the DT mid JJ 1980 CD s PP . SENT Ten CD years NNS later RBR , , it PP was VBD the DT turn NN of IN the DT newly RB industrialized VVN countries NNS of IN Asia NP and CC Latin NP America NP to TO feel VV the DT crunch NN . SENT The DT common JJ factors NNS in IN these DT crises NNS are VBP threefold RB . SENT the DT extent NN and CC rapidity NN of IN regulatory JJ change NN . SENT overvalued JJ property NN markets NNS . SENT and CC supervisory JJ deficiencies NNS . SENT In IN the DT United NP States NPS , , approximately RB 1 CD , , 500 CD commercial JJ banks NNS and CC 1 CD , , 200 CD savings NNS and CC thrift NN funds NNS were VBD liquidated VVN , , restructured VVN or CC sold VVN off RP under IN the DT aegis NN of IN the DT Federal NP Deposit NP Insurance NP Corporation NP FDIC NP between IN 1984 CD and CC 1995 CD . SENT In IN Japan NP , , the DT entire JJ economy NN was VBD destabilized VVN by IN the DT crisis NN in IN its PP$ financial JJ services NNS sector NN . SENT The DT crisis NN in IN Asian JJ emerging VVG markets NNS , , where WRB Japanese JJ financial JJ institutions NNS were VBD highly RB exposed VVN , , further RBR increased VVD the DT impact NN . SENT State NN intervention NN may MD also RB be VB a DT factor NN in IN financial JJ sector NN consolidation NN , , with IN governments NNS acting VVG as IN sellers NNS in IN privatization NN . SENT In IN Latin NP America NP and CC Central NP and CC Eastern NP Europe NP , , privatization NN has VHZ been VBN an DT important JJ channel NN for IN attracting VVG foreign JJ capital NN . SENT and CC in IN Africa NP it PP is VBZ the DT favoured VVN means NNS for IN transferring VVG the DT expense NN of IN running VVG burdensome JJ financial JJ institutions NNS to TO private JJ operators NNS . SENT In IN France NP the DT privatization NN of IN financial JJ institutions NNS in IN the DT 1990 CD s PP allowed VVN banks NNS to TO engage VV in IN M NP As IN or CC strike VV up RP partnership NN arrangements NNS . SENT In IN 1999 CD , , the DT scenario NN was VBD different JJ in IN Japan NP . SENT the DT Government NP became VVD a DT shareholder NN in IN several JJ banks NNS with IN a DT view NN to TO consolidating VVG their PP$ capital NN and CC preparing VVG strategic JJ alliances NNS . SENT In IN return NN for IN this DT injection NN of IN public JJ funds NNS , , Japanese JJ banks NNS committed VVD themselves PP to TO liquidating VVG 10 CD trillion CD yen NN of IN bad JJ loans NNS and CC to TO cutting VVG 20 CD , , 000 CD posts NNS over IN three CD years NNS . SENT The DT race NN for IN size NN , , efficiency NN , , synergies NNS and CC profitability NN Global JJ corporations NNS today NN expect VVP their PP$ bankers NNS to TO have VH the DT expertise NN , , products NNS and CC presence NN to TO serve VV them PP anywhere RB . SENT Many JJ bankers NNS believe VVP that IN a DT greater JJR resource NN base NN and CC presence NN across IN a DT wide JJ range NN of IN markets NNS is VBZ necessary JJ to TO satisfy VV their PP$ corporate JJ customers NNS and CC argue VVP that IN restrictions NNS on IN M NP As RB , , including VVG among IN major JJ domestic JJ financial JJ institutions NNS , , should MD be VB relaxed VVN to TO enable VV the DT development NN of IN institutions NNS with IN the DT size NN and CC resources NNS to TO compete VV globally RB . SENT Consolidation NN for IN size NN and CC increased JJ efficiency NN is VBZ for IN many JJ the DT chosen VVN strategy NN to TO stay VV alive JJ and CC remain VV competitive JJ . SENT Economies NNS of IN scale NN size NN and CC scope NN product NN mix NN , , long JJ part NN of IN economists NNS theoretical JJ jargon NN , , are VBP now RB everyday JJ topics NNS in IN the DT financial JJ community NN . SENT In IN a DT radically RB consolidating VVG industry NN , , banks NNS are VBP also RB convinced VVN that DT size NN is VBZ not RB only RB an DT effective JJ defence NN against IN being VBG taken VVN over RP , , but CC that DT M NP As RB provide VV the DT springboard NN to TO increase VV profitability NN through IN greater JJR economies NNS of IN scale NN and CC improved JJ operational JJ efficiency NN . SENT They PP argue VVP , , in IN addition NN , , that WDT M NP As RB provide VV the DT necessary JJ resource NN base NN for IN investments NNS in IN such JJ high JJ cost NN areas NNS as IN product NN development NN and CC believe VVP sufficient JJ regulatory JJ provisions NNS not RB involving VVG restrictions NNS on IN mergers NNS already RB exist VVP to TO protect VV consumers NNS from IN the DT increased JJ concentration NN M NP As RB might MD encourage VV . SENT There EX are VBP those DT who WP believe VVP that DT efficiency NN based VVN arguments NNS in IN favour NN of IN M NP As RB confuse VV size NN , , cost NN cutting NN and CC efficiency NN . SENT Stephen NP Rhoades NP , , United NP States NPS Federal NP Reserve NP Board NP economist NN , , explains VVZ the DT distinction NN between IN efficiency NN improvements NNS and CC cost VV cutting VVG thus RB . SENT Reductions NNS in IN operating VVG expenses NNS may MD result VV from IN cutting VVG employees NNS , , closing VVG branches NNS , , consolidating VVG headquarters NN offices NNS , , closing VVG computer NN and CC back JJ office NN operations NNS and CC so RB forth RB . SENT Such JJ reductions NNS in IN expenses NNS , , however RB , , do VVP not RB automatically RB translate VV into IN improvements NNS in IN efficiency NN as IN measured VVN by IN an DT expense NN ratio NN , , such JJ as IN expenses NNS to TO assets NNS or CC revenues NNS . SENT Reductions NNS in IN expenses NNS may MD be VB accompanied VVN by IN corresponding JJ reductions NNS in IN assets NNS and CC revenues NNS , , which WDT simply RB represent VVP shrinkage NN of IN the DT firm NN rather RB than IN efficiency NN improvements NNS . SENT An DT improvement NN in IN efficiency NN requires VVZ that IN costs NNS be VB reduced VVN by IN more JJR than IN any DT decline NN in IN assets NNS revenues NNS . SENT 9 CD Rhoades NP maintains VVZ that IN the DT failure NN to TO distinguish VV between IN cost NN cutting NN and CC efficiency NN gains NNS may MD partly RB explain VV the DT continuing VVG disagreement NN between IN bankers NNS who WP emphasize VVP the DT cost NN reductions NNS to TO be VB achieved VVN through IN mergers NNS and CC researchers NNS who WP generally RB study VVP the DT efficiency NN effects NNS of IN mergers NNS . SENT Synergy NN , , achieved VVN by IN combining VVG the DT forces NNS of IN two CD companies NNS with IN complementary JJ strengths NNS , , is VBZ another DT rationale NN advanced VVD to TO support VV M NP As IN . SENT Some DT academics NNS have VHP questioned VVN synergy NN as IN a DT justifiable JJ basis NN for IN M NP As IN and CC post VV merger NN experience NN of IN most JJS firms NNS would MD seem VV to TO support VV their PP$ doubts NNS . SENT One CD author NN has VHZ maintained VVN that IN dreams NNS of IN synergy NN lead NN managers NNS to TO pay VV lofty JJ acquisition NN premiums NNS that WDT are VBP tantamount JJ to TO making VVG charitable JJ contributions NNS to TO random JJ passers NNS by IN , , never RB to TO be VB recouped VVN by IN the DT buying VVG company NN no DT matter NN how WRB long JJ the DT acquisition NN is VBZ held VVN . SENT In IN the DT case NN of IN most JJS acquisitions NNS , , achieving VVG significant JJ synergy NN is VBZ unlikely JJ . SENT when WRB it PP does VVZ occur VV , , it PP usually RB falls VVZ far RB short JJ of IN required JJ performance NN improvements NNS priced VVN into IN the DT acquisition NN premium NN . SENT Putting VVG together RB two CD profitable JJ , , compatible JJ , , well RB managed VVN businesses NNS is VBZ not RB enough JJ to TO create VV synergy NN as IN competitors NNS are VBP ever RB present JJ . SENT Whatever WDT the DT motives NNS driving VVG M NP As RB , , many JJ fear NN that IN the DT quest NN for IN size NN is VBZ leading VVG to TO the DT unhealthy JJ creation NN of IN superbanks NNS . SENT Sectoral JJ consolidation NN and CC reduction NN in IN competition NN suggest VVP no DT immediate JJ benefits NNS for IN customers NNS or CC staff NN who WP find VVP themselves PP in IN the DT front JJ line NN of IN rationalization NN and CC having VHG to TO bear VV the DT brunt NN of IN its PP$ costs NNS . SENT Consistent JJ with IN the DT findings NNS of IN many JJ others NNS , , a DT study NN by IN the DT Bank NP for IN International NP Settlements NP BIS RB reports VVZ the DT experience NN of IN the DT majority NN of IN mergers NNS as IN disappointing JJ , , with IN organizational JJ problems NNS almost RB inevitably RB underestimated VVN and CC most JJS acquisitions NNS overpriced JJ , , noting VVG the DT creation NN of IN banks NNS too RB big JJ to TO fail VV . SENT The DT superbanks NNS sheer NN size NN and CC unwieldiness NN can MD encourage VV complacency NN and CC offer VV no DT more JJR protection NN against IN failure NN . SENT However RB , , the DT failure NN of IN such JJ huge JJ banks NNS would MD be VB of IN such JJ consequence NN that IN host NN governments NNS may MD be VB forced VVN to TO use VV taxpayers NNS money NN to TO bail VV out RP any DT which WDT encountered VVD difficulties NNS 10 CD because IN of IN the DT serious JJ implications NNS for IN the DT financial JJ system NN . SENT consequently RB , , this DT virtual JJ insurance NN policy NN allows VVZ large JJ financial JJ institutions NNS to TO pursue VV imprudent JJ credit NN and CC investment NN policies NNS . SENT It PP has VHZ been VBN suggested VVN that IN international JJ comparisons NNS over IN a DT 100 CD year NN period NN show NN how WRB changes NNS in IN the DT structure NN and CC strength NN of IN safety NN net JJ guarantees NNS may MD affect VV financial JJ institution NN risk NN taking VVG and CC , , by IN extension NN , , the DT motive NN to TO consolidate VV to TO increase VV the DT value NN of IN access NN to TO the DT safety NN net NN , , if IN financial JJ market NN participants NNS perceive VVP very RB large JJ organizations NNS to TO be VB too RB big JJ to TO fail VV . SENT 11 CD Other JJ critics NNS contend VVP that IN the DT rush NN to TO size NN and CC scale NN through IN M NP As RB is VBZ rarely RB about IN market NN success NN and CC satisfying JJ customers NNS or CC investors NNS , , but CC more RBR the DT product NN of IN the DT ambitions NNS of IN chief JJ executives NNS and CC the DT need NN of IN investment NN bankers NNS for IN ever RB spiralling VVG transaction NN fees NNS . SENT They PP compare VVP the DT contemporary JJ process NN with IN conglomerate NN mergers NNS of IN the DT 1970 CD s PP and CC asset NN plays NNS of IN the DT 1980 CD s PP , , many JJ of IN which WDT were VBD eventually RB unbundled VVN . SENT They PP stress VVP that IN it PP is VBZ rare JJ for IN the DT market NN power NN and CC scale NN economies NNS associated VVN with IN market NN dominance NN not RB to TO fall VV victim NN ultimately RB to TO hubris NN , , insulation NN from IN the DT market NN and CC sheer JJ bureaucratic JJ inefficiency NN that WDT goes VVZ with IN such JJ size NN . SENT Size NN creates VVZ greater JJR complexity NN in IN terms NNS of IN bureaucratic JJ controls NNS , , slows VVZ the DT ability NN of IN organizations NNS to TO respond VV fast RB to TO changing VVG market NN conditions NNS and CC leads VVZ to TO complacency NN . SENT Given VVN the DT importance NN of IN credit NN access NN by IN small JJ businesses NNS to TO employment NN creation NN , , it PP is VBZ essential JJ to TO highlight VV the DT findings NNS of IN a DT report NN 12 CD on IN the DT impact NN of IN bank NN M NP As IN on IN small JJ business NN lending NN . SENT The DT report NN stresses VVZ that IN the DT weight NN of IN evidence NN points NNS to TO more RBR negative JJ than IN positive JJ effects NNS of IN banking NN industry NN consolidation NN on IN small JJ business NN lending NN . SENT Small JJ firms NNS can MD expect VV some DT difficulties NNS in IN obtaining VVG bank NN credit NN as IN the DT banking NN industry NN undergoes VVZ structural JJ change NN and CC resultant JJ adjustments NNS in IN competitive JJ market NN conditions NNS . SENT Whether IN the DT negative JJ effects NNS are VBP short RB run VVN or CC long JJ run NN was VBD impossible JJ to TO discern VV from IN the DT data NNS reviewed VVN and CC the DT report NN recommends VVZ further JJR research NN on IN the DT effects NNS of IN consolidation NN on IN small JJ business NN credit NN . SENT Information NN and CC communications NNS technologies NNS ICTs NP Technology NP presents VVZ both CC an DT opportunity NN and CC a DT threat NN to TO the DT financial JJ services NNS industry NN , , especially RB banking NN . SENT It PP enables VVZ enormous JJ efficiencies NNS in IN transaction NN costs NNS and CC allows VVZ financial JJ companies NNS to TO reach VV a DT broader JJR range NN of IN clients NNS . SENT Indeed RB , , ICTs NNS have VHP had VHN an DT impact NN on IN all DT aspects NNS of IN financial JJ services NNS provision NN . SENT they PP have VHP helped VVN reduce VV costs NNS and CC modified VVN the DT channels NNS through IN which WDT customers NNS access NN services NNS and CC products NNS . SENT According VVG to TO data NNS from IN the DT United NP States NPS Office NP of IN the DT Comptroller NN of IN the DT Currency NN , , the DT cost NN of IN average JJ transactions NNS at IN bank NN teller NN windows NNS was VBD four CD times NNS higher JJR in IN 1997 CD than IN the DT cost NN of IN transactions NNS on IN automatic JJ teller NN machines NNS ATMs NNS and CC a DT 100 CD times NNS more JJR than IN over IN the DT Internet NN . SENT Computer NN and CC information NN management NN systems NNS reduce VV operational JJ costs NNS by IN facilitating VVG . SENT the DT development NN of IN standardized JJ products NNS . SENT automation NN of IN procedures NNS . SENT development NN of IN new JJ credit NN scoring VVG programmes NNS . SENT organization NN of IN internal JJ data NNS transfers NNS . SENT and CC centralization NN of IN processing NN tasks NNS away RB from IN branch NN networks NNS . SENT They PP enable VVP the DT assembly NN and CC analysis NN of IN large JJ quantities NNS of IN information NN about IN customers NNS , , moving VVG that DT information NN rapidly RB over IN long JJ distances NNS and CC providing VVG remote JJ access NN to TO banking NN facilities NNS . SENT All PDT this DT provides VVZ the DT possibility NN of IN diversifying VVG into IN additional JJ business NN areas NNS and CC improving VVG tools NNS for IN information NN and CC risk NN management NN . SENT Competition NN is VBZ affected VVN from IN both CC the DT demand NN and CC supply NN sides NNS . SENT Customers NNS can MD more RBR easily RB compare VV prices NNS of IN services NNS and CC shop VV around RP . SENT barriers NNS to TO entry NN into IN the DT retail JJ banking NN market NN are VBP lowered VVN , , allowing VVG small JJ and CC perhaps RB specialized JJ banks NNS and CC niche NN institutions NNS to TO become VV competitive JJ . SENT Apart RB from IN the DT costs NNS associated VVN with IN developing VVG and CC maintaining VVG large JJ scale NN information NN management NN systems NNS which WDT place VVP additional JJ pressure NN on IN bottom JJ lines NNS , , technology NN generates VVZ its PP$ own JJ challenges NNS . SENT There EX is VBZ , , for IN instance NN , , understandable JJ pressure NN on IN financial JJ institutions NNS to TO seek VV alternative NN , , cheaper JJR methods NNS for IN delivering VVG services NNS than IN traditional JJ brick NN and CC mortar NN branches NNS . SENT However RB , , as IN remote JJ banking NN turns VVZ from IN a DT supplementary JJ to TO a DT core JJ service NN in IN the DT longer JJR run NN and CC branch NN networks NNS are VBP pruned VVN , , customers NNS may MD also RB defect VV as IN information NN on IN financial JJ service NN prices NNS becomes VVZ fully RB transparent JJ , , overcoming VVG the DT traditional JJ inertia NN on IN which WDT banks NNS have VHP long RB depended VVN to TO retain VV customers NNS . SENT These DT developments NNS are VBP intensifying VVG sectoral JJ competition NN even RB more RBR and CC exerting VVG such JJ pressure NN on IN profits NNS that IN many JJ observers NNS believe VVP many JJ traditional JJ financial JJ firms NNS may MD not RB survive VV . SENT Increasing VVG technological JJ costs NNS affecting VVG banks NNS viability NN are VBP a DT factor NN usually RB mentioned VVN for IN M NP As RB . SENT Another DT technology NN related JJ problem NN for IN service NN providers NNS involves VVZ the DT mix NN between IN self NN service NN and CC personal JJ contact NN in IN branches NNS . SENT Although IN technology NN contributes VVZ to TO higher JJR productivity NN and CC cost NN reductions NNS in IN a DT work NN intensive JJ industry NN , , failing VVG to TO strike VV the DT right JJ balance NN between IN self NN service NN and CC personal JJ interaction NN with IN clients NNS can MD result VV in IN a DT loss NN of IN clients NNS , , a DT clear JJ majority NN of IN whom WP continue VVP to TO prefer VV branches NNS and CC personal JJ contact NN despite IN the DT growing VVG importance NN of IN ATMs NNS and CC home NN and CC telephone NN banking NN . SENT Computer NN based VVN access NN to TO banking NN poses VVZ its PP$ own JJ set NN of IN problems NNS . SENT The DT technology NN is VBZ expensive JJ , , creating VVG a DT barrier NN for IN low JJ and CC medium JJ income NN customers NNS . SENT To TO use VV the DT Internet NN , , a DT consumer NN must MD have VH a DT phone NN , , modem NN and CC Internet NN provider NN , , which WDT many JJ low JJ income NN people NNS whose WP$ community NN branches NNS are VBP most RBS likely JJ to TO be VB axed VVN first RB in IN cost NN cutting NN programmes VVZ cannot NN afford VV . SENT While IN Internet NN banking NN clearly RB has VHZ a DT potential NN to TO provide VV services NNS for IN rural JJ and CC remote JJ customers NNS , , its PP$ use NN is VBZ not RB widespread JJ in IN many JJ countries NNS . SENT An DT Australian JJ survey NN found VVD that IN although IN 30 CD per IN cent NN of IN rural JJ , , regional JJ and CC remote JJ respondents NNS had VHD a DT computer NN , , 90 CD per IN cent NN had VHD never RB used VVN the DT Internet NN . SENT of IN those DT who WP had VHD , , only RB 4 CD per IN cent NN had VHD used VVN it PP several JJ times NNS . SENT ABS NP statistics NNS show VVP that IN only RB 8 CD per IN cent NN of IN those DT outside JJ capital NN cities NNS had VHD household NN access NN to TO the DT Internet NN and CC , , from IN December NP 1997 CD to TO February NP 1998 CD , , only RB 0 CD . SENT 3 CD per IN cent NN of IN those DT adults NNS using VVG the DT Internet NN paid VVD bills NNS or CC transferred VVN funds NNS via IN the DT Internet NN . SENT 13 CD A NP PriceWaterhouseCoopers NP annual JJ survey NN of IN customer NN attitudes NNS to TO financial JJ services NNS over IN the DT Internet NN lends VVZ direct JJ support NN to TO the DT above JJ findings NNS , , 14 CD revealing VVG that IN in IN 1998 CD . SENT 67 CD per IN cent NN of IN respondents NNS were VBD not RB comfortable JJ if IN financial JJ products NNS and CC services NNS were VBD only RB available JJ over IN the DT Internet NN by IN 1999 CD this NN had VHD increased VVN to TO 70 CD per IN cent NN . SENT 66 CD per IN cent NN of IN respondents NNS were VBD not RB comfortable JJ providing VVG personal JJ details NNS over IN the DT Internet NN increasing VVG to TO 71 CD per IN cent NN by IN 1999 CD . SENT 76 CD per IN cent NN of IN all DT respondents NNS knew VVD nothing NN or CC little JJ about IN financial JJ services NNS available JJ over IN the DT Internet NN . SENT This DT position NN remained VVD unchanged JJ . SENT 91 CD per IN cent NN of IN respondents NNS said VVD they PP needed VVD a DT good JJ or CC very RB good JJ knowledge NN of IN the DT institution NN before IN they PP started VVD using VVG its PP$ products NNS or CC services NNS over IN the DT Internet NN increasing VVG to TO 95 CD per IN cent NN by IN 1999 CD . SENT Consumers NNS have VHP other JJ concerns NNS . SENT Although IN the DT Internet NN offers VVZ a DT wider JJR choice NN and CC flexibility NN to TO access VV new JJ products NNS and CC conduct NN business NN at IN any DT time NN , , some DT fear NN the DT risks NNS of IN depersonalization NN in IN financial JJ relationships NNS . SENT The DT chance NN of IN plunging VVG into IN hazardous JJ operations NNS in IN the DT absence NN of IN traditional JJ personalized JJ professional JJ guidance NN has VHZ increased VVN tremendously RB and CC it PP is VBZ easier JJR to TO fall VV victim NN to TO fraudulent JJ services NNS providers NNS . SENT The DT British NP Banking NP Code NP Standards NP Board NP has VHZ released VVN a DT report NN condemning VVG online JJ banks NNS for IN giving VVG unacceptably RB low JJ levels NNS of IN information NN to TO customers NNS . SENT 15 CD A NP report NN compiled VVN by IN the DT Foundation NP for IN Information NP Policy NP Research NP concludes VVZ that IN , , unlike IN those DT with IN conventional JJ accounts NNS , , the DT United NP Kingdom NP s VVZ 2 CD million CD Internet NN bank NN customers NNS may MD not RB be VB adequately RB protected VVN from IN fraud NN , , 16 CD raising VVG questions NNS not RB just RB about RB stand VV alone RB online JJ banks NNS but CC also RB about IN web NN services NNS offered VVN by IN the DT high JJ street NN banks NNS . SENT In IN 1997 CD , , European NP Union NP Bank NP , , registered VVN in IN Antigua NP , , collapsed VVD with IN its PP$ founders NNS disappearing VVG with IN the DT depositors NNS money NN . SENT it PP had VHD marketed VVN itself PP by IN claiming VVG that IN since IN there EX are VBP no DT government NN withholding VVG or CC reporting VVG requirements NNS on IN accounts NNS , , the DT burdensome JJ and CC expensive JJ accounting NN requirements NNS are VBP reduced VVN for IN you PP and CC the DT bank NN . SENT 17 CD Examples NNS such JJ as IN these DT discourage VVP even RB those DT who WP might MD otherwise RB be VB attracted VVN to TO online JJ financial JJ services NNS . SENT Thus RB , , the DT general JJ trend NN in IN industrialized JJ countries NNS towards IN a DT sharp JJ reduction NN in IN the DT number NN of IN branches NNS and CC staff NN to TO achieve VV cost NN savings NNS parallel JJ to TO the DT increase NN in IN alternative JJ delivery NN channels NNS may MD be VB a DT high JJ risk NN strategy NN . SENT There EX are VBP growing VVG predictions NNS , , however RB , , that IN the DT financial JJ industry NN is VBZ on IN the DT verge NN of IN a DT revolution NN inspired VVN by IN the DT Internet NN and CC e NN commerce NN . SENT The DT Internet NN and CC associated JJ technologies NNS such JJ as IN digital JJ television NN , , smart JJ cards NNS and CC advanced JJ mobile JJ telephones NNS bring VVP a DT number NN of IN challenges NNS for IN financial JJ services NNS . SENT Because IN set VVN up RP and CC transaction NN costs NNS are VBP low JJ it PP makes VVZ it PP easy JJ and CC cheap JJ for IN Internet NP only JJ banks NNS to TO be VB created VVN from IN scratch NN and CC to TO offer VV very RB competitive JJ products NNS . SENT The DT power NN of IN Internet NP only JJ banks NNS , , for IN instance NN , , is VBZ illustrated VVN by IN Egg NP , , the DT direct JJ banking NN arm NN of IN Prudential NP , , which WDT has VHZ persuaded VVN a DT large JJ number NN of IN customers NNS to TO do VV their PP$ banking NN online JJ although IN the DT bank NN offers VVZ a DT loss NN making VVG interest NN rate NN . SENT Alliances NNS , , joint JJ ventures NNS and CC cooperative JJ arrangements NNS between IN financial JJ institutions NNS or CC other JJ actors NNS are VBP springing VVG up RB daily JJ with IN the DT aim NN of IN starting VVG online JJ operations NNS . SENT In IN April NP 2000 CD the DT British JJ bank NN HSBC NP announced VVD an DT alliance NN with IN the DT investment NN bank NN Merrill NP Lynch NP to TO launch VV a DT global JJ online JJ banking NN and CC investment NN service NN . SENT The DT scramble NN not RB to TO be VB left VVN behind RB in IN online JJ banking NN is VBZ accompanied VVN by IN massive JJ investments NNS in IN marketing NN and CC communication NN facilities NNS . SENT The DT linkage NN between IN financial JJ sector NN M NP As IN and CC Internet NN expansion NN is VBZ best RBS illustrated VVN by IN the DT alliance NN between IN Telef NP nica NP , , Spain NP s VVZ biggest JJS telephone NN operator NN and CC Banco NP Bilbao NP Vizcaya NP Argentaria NP BBVA NP , , the DT largest JJS bank NN by IN capitalization NN on IN the DT Madrid NP Stock NP Exchange NP . SENT they PP have VHP taken VVN shareholdings NNS in IN each DT other JJ , , increased JJ cooperation NN among IN some DT of IN their PP$ subsidiaries NNS , , announced VVD intentions NNS to TO develop VV joint JJ Internet NN based VVN banking NN and CC have VH a DT joint JJ subsidiary NN , , Uno NP e NN , , offering VVG mobile JJ phone NN based VVN Internet NP banking NN services NNS . SENT Uno NP e SYM recently RB merged VVN with IN the DT United NP Kingdom NP s PP First NP e NN to TO create VV UnoFirst NP Group NP . SENT In IN the DT same JJ manner NN , , the DT French JJ Belgian JJ bank NN Dexia NP announced VVD the DT launch NN of IN mobile JJ phone NN banking NN in IN association NN with IN Nokia NP . SENT These DT link NN ups NNS between IN banks NNS , , telephone NN operators NNS or CC manufacturers NNS are VBP already RB common JJ in IN Scandinavia NP , , where WRB the DT Swedish JJ Finnish JJ MeritaNordbanken NP operates VVZ mobile JJ phone NN banking NN services NNS . SENT Some DT bankers NNS predict VVP that IN banks NNS from IN different JJ countries NNS will MD soon RB team VV up RP to TO develop VV alternative JJ Internet NN based VVN distribution NN strategies NNS to TO bypass VV the DT need NN for IN domestic JJ branch NN networks NNS . SENT They PP believe VVP an DT institution NN with IN the DT right JJ strategy NN could MD leapfrog VV the DT domestic JJ competition NN , , much RB as IN the DT outsider NN Royal NP Bank NP of IN Scotland NP RBS NP achieved VVD a DT dominant JJ share NN of IN the DT English JJ insurance NN market NN through IN its PP$ telephone NN subsidiary NN Direct NP Line NP . SENT M NP A NP advisers NNS are VBP therefore RB preparing VVG for IN a DT new JJ wave NN of IN consolidation NN , , this DT time NN with IN European JJ banks NNS buying VVG smaller JJR outfits NNS not RB using VVG their PP$ own JJ equity NN but CC that IN of IN their PP$ Internet NN start NN ups NNS , , just RB as IN BBVA NP and CC Telef NP nica NP did VVD when WRB they PP bought VVD First JJ e NN . SENT 18 CD New NP market NN entrants NNS Commercial JJ bank NN operations NNS cover VVP a DT wide JJ range NN of IN activities NNS that WDT can MD , , a DT priori NN , , be VB carried VVN out RP independently RB of IN one CD another DT . SENT There EX are VBP , , however RB , , advantages NNS in IN bundled VVN delivery NN for IN economies NNS of IN scope NN and CC in IN a DT one CD stop NN service NN centre NN for IN consumers NNS . SENT This DT has VHZ a DT direct JJ impact NN on IN the DT number NN and CC nature NN of IN M NP As IN in IN the DT sector NN . SENT But CC there EX is VBZ no DT reason NN why WRB each DT service NN could MD not RB be VB generated VVN by IN different JJ producers NNS , , particularly RB as IN globalization NN and CC technology NN facilitate VVP profitable JJ market NN segmentation NN . SENT Globalization NN has VHZ made VVN a DT difference NN in IN three CD ways NNS . SENT First RB , , global JJ capital NN markets NNS make VVP it PP easier JJR for IN any DT reputable JJ company NN big JJ or CC small JJ to TO raise VV capital NN . SENT Physical JJ size NN is VBZ no RB longer RBR a DT precondition NN for IN attracting VVG capital NN and CC the DT advantage NN of IN size NN is VBZ thus RB diminished VVN . SENT Second RB , , the DT removal NN of IN barriers NNS to TO geographic JJ competition NN gives VVZ companies NNS access NN to TO millions NNS more JJR customers NNS , , so RB those DT companies NNS can MD build VV big JJ customer NN bases NNS even RB if IN they PP focus VVP on IN just RB one CD narrow JJ product NN . SENT Finally RB , , the DT digital JJ revolution NN means VVZ that IN a DT business NN can MD be VB built VVN on IN much RB narrower JJR specialities NNS for IN several JJ reasons NNS . SENT For IN example NN , , it PP used VVD to TO make VV little JJ sense NN for IN a DT bank NN to TO outsource NN credit NN card NN processing NN . SENT it PP was VBD cheaper JJR in IN house NN , , even RB if IN the DT bank NN was VBD not RB very RB good JJ at IN it PP . SENT Now RB the DT marginal JJ costs NNS of IN interacting VVG with IN other JJ firms NNS are VBP falling VVG rapidly RB , , enabling VVG specialists NNS to TO work VV together RB more RBR easily RB . SENT Thus RB new JJ entrants NNS unburdened VVN by IN expensive JJ fixed JJ cost NN investments NNS may MD build VV big JJ businesses NNS just RB on IN what WP they PP excel VVP in IN and CC outsource NN the DT rest NN . SENT Companies NNS that WDT do VVP not RB specialize VV will MD not RB be VB as RB good JJ as IN competitors NNS that WDT do VVP . SENT Analysts NNS argue VVP that IN these DT companies NNS in IN effect NN earn VVP more RBR by IN using VVG less RBR physical JJ capital NN and CC their PP$ market NN capitalization NN rockets NNS as IN a DT result NN . SENT they PP suggest VVP replication NN of IN such JJ success NN by IN operating VVG in IN more JJR than IN one CD speciality NN , , thus RB increasing VVG size NN without IN lowering VVG returns NNS . SENT Straying VVG into IN areas NNS where WRB they PP do VVP not RB have VH strong JJ intangible JJ capital NN knowledge NN , , brands NNS , , relationships NNS , , skills NNS , , etc FW . SENT risks VVZ the DT fate NN of IN the DT old JJ conglomerates NNS . SENT New JJ service NN providers NNS , , such JJ as IN insurance NN companies NNS e NN . SENT g NN . SENT Prudential NP , , Zurich NP , , stockbrokers NNS Schwab NP , , distributors NNS Virgin NP , , Carrefour NN , , Quelle NP and CC even RB manufacturers NNS General NP Electric NP , , Volkswagen NN are VBP thus RB competing VVG for IN provision NN of IN banking NN products NNS . SENT The DT multiplicity NN of IN new JJ entrants NNS and CC the DT competitive JJ power NN the DT Internet NN provides VVZ have VH altered VVN traditional JJ market NN rules NNS . SENT The DT impact NN of IN these DT new JJ entrants NNS on IN some DT of IN the DT richest JJS financial JJ markets NNS is VBZ very RB dramatic JJ . SENT Although IN their PP$ market NN shares NNS may MD still RB be VB small JJ , , effects NNS on IN margins NNS have VHP been VBN significant JJ with IN , , for IN example NN , , pressure NN from IN competitors NNS such JJ as IN British NP Gas NP s PP Goldfish NNS and CC MBNA NP causing VVG British JJ credit NN card NN margins NNS to TO shrink VV from IN nearly RB 20 CD per IN cent NN to TO an DT average NN of IN 12 CD per IN cent NN . SENT Consumer NN issues NNS Consumer NN benefits NNS in IN terms NNS of IN better JJR price NN and CC higher JJR quality NN service NN are VBP commonly RB advocated VVN in IN support NN of IN financial JJ sector NN M NP As RB . SENT since IN M NP A DT related JJ cost NN savings NNS should MD be VB viewed VVN as IN efficiency NN gains NNS , , banks NNS and CC other JJ financial JJ services NNS providers NNS could MD pass VV these DT on RP to TO consumers NNS in IN the DT form NN of IN lower JJR service NN costs NNS . SENT It PP is VBZ therefore RB advanced JJ that IN denying VVG mergers NNS creates VVZ opportunity NN costs NNS to TO consumers NNS , , equal JJ to TO the DT size NN of IN the DT projected VVN cost NN savings NNS . SENT But CC there EX is VBZ another DT side NN to TO the DT argument NN . SENT a DT Euro NP FIET NP now RB UNI NN Europa NN survey NN reports VVZ consumers NNS have VHP little JJ or CC nothing NN to TO gain VV from IN M NP As RB , , apart RB from IN a DT few JJ cases NNS of IN improved JJ or CC slightly RB cheaper JJR products NNS and CC services NNS . SENT More RBR usually RB they PP lose VVP personal JJ services NNS to TO which WDT they PP were VBD accustomed VVN and CC find VV a DT strange JJ face NN at IN the DT door NN . SENT Although IN technology NN is VBZ providing VVG alternative JJ delivery NN channels NNS that WDT enable VVP finance NN companies NNS to TO rationalize VV their PP$ traditional JJ distribution NN channels NNS , , the DT future NN of IN branch NN networks NNS is VBZ a DT major JJ issue NN for IN communities NNS in IN almost RB all DT bank NN mergers NNS . SENT Branches NNS and CC their PP$ personnel NNS , , play VV a DT critical JJ role NN in IN the DT economic JJ life NN of IN communities NNS . SENT Historically RB , , branch NN personnel NNS have VHP also RB been VBN the DT eyes NNS and CC ears NNS of IN banks NNS , , gathering VVG highly RB localized JJ information NN about IN businesses NNS and CC other JJ clients NNS to TO understand VV the DT community NN s PP specific JJ needs NNS so RB as RB to TO serve VV it PP better JJR . SENT The DT more JJR bank NN personnel NNS are VBP thinly RB stretched VVN out RP over IN larger JJR and CC larger JJR geographic JJ areas NNS , , the DT harder RBR it PP becomes VVZ to TO gather VV in IN depth NN information NN and CC manage VV relationships NNS with IN the DT community NN . SENT Branches NNS are VBP also RB symbolically RB important JJ because IN they PP bear VVP witness NN to TO the DT fact NN that IN the DT bank NN believes VVZ in IN the DT economic JJ and CC social JJ viability NN of IN the DT community NN . SENT Banks NNS contribute VVP to TO economic JJ vitality NN and CC employment NN and CC their PP$ branches NNS offer VVP convenient JJ access NN with IN a DT personal JJ touch NN to TO retail JJ customers NNS , , many JJ of IN whom WP may MD have VH little JJ or CC no DT prior JJ experience NN with IN banks NNS . SENT A DT branch NN in IN the DT neighbourhood NN signals VVZ that IN the DT bank NN is VBZ interested VVN in IN doing VVG business NN with IN the DT community NN and CC these DT intangibles NNS can MD make VV an DT important JJ difference NN when WRB it PP comes VVZ to TO meeting VVG local JJ credit NN needs NNS . SENT Bearing VVG in IN mind NN the DT difficulty NN of IN disentangling VVG the DT impact NN of IN other JJ factors NNS such JJ as IN increasing VVG global JJ competition NN or CC technological JJ change NN in IN assessing VVG the DT impact NN of IN M NP As IN on IN consumers NNS Andrew NP Leyshon NP argues VVZ that IN , , in IN general NN , , the DT number NN of IN products NNS on IN the DT market NN has VHZ increased VVN significantly RB in IN recent JJ years NNS , , offering VVG more JJR choice NN at IN reduced JJ prices NNS at IN least JJS for IN larger JJR and CC wealthy JJ clients NNS as IN most JJS new JJ market NN entrants NNS are VBP seeking VVG to TO compete VV on IN the DT basis NN of IN price NN . SENT They PP are VBP able JJ to TO do VV this DT because IN information NN and CC communications NNS technologies NNS ICTs NNS allow VVP them PP to TO save VV costs NNS by IN operating VVG with IN fewer JJR or CC indeed RB without IN a DT traditional JJ branch NN network NN . SENT It PP is VBZ also RB claimed VVN that IN new JJ product NN providers NNS are VBP able JJ to TO offer VV time NN flexibility NN to TO many JJ clients NNS who WP no RB longer RB have VH to TO rely VV on IN branch NN opening VVG hours NNS to TO conduct VV their PP$ business NN . SENT Traditional JJ providers NNS have VHP responded VVN to TO this DT trend NN to TO meet VV consumer NN need NN and CC cut VV running VVG costs NNS by IN closing VVG branches NNS . SENT This DT has VHZ had VHN a DT detrimental JJ effect NN on IN a DT significant JJ minority NN of IN individuals NNS lacking VVG access NN to TO the DT technology NN or CC the DT knowledge NN to TO use VV it PP , , which WDT increases VVZ social JJ exclusion NN as IN such JJ groups NNS tend VVP already RB to TO suffer VV from IN educational JJ , , social JJ and CC economic JJ disadvantages NNS . SENT Sometimes RB the DT disappearance NN of IN mainstream JJ alternatives NNS has VHZ opened VVN the DT door NN to TO predatory JJ financial JJ service NN providers NNS offering VVG lower JJR quality NN , , more JJR expensive JJ services NNS to TO those DT most JJS in IN need NN . SENT As IN restriction NN of IN competition NN is VBZ very RB often RB the DT raison NN d SYM tre NN of IN merger NN activity NN , , more JJR mergers NNS are VBP , , in IN the DT long JJ run NN , , likely JJ to TO be VB a DT disservice NN to TO consumers NNS . SENT The DT reaction NN of IN corporate JJ clients NNS should MD also RB be VB disturbing JJ to TO many JJ banks NNS , , given VVN the DT importance NN of IN this DT market NN in IN merger NN calculus NN . SENT According VVG to TO a DT Treasury NP Management NP Association NP survey NN carried VVD out RP at IN the DT peak NN of IN the DT merger NN boom NN , , three CD quarters NNS of IN North NP American NP treasurers NNS had VHD experienced VVN some DT service NN disruption NN , , account NN errors NNS or CC more JJR bureaucracy NN following VVG mergers NNS . SENT 19 CD It PP found VVD that IN 40 CD per IN cent NN of IN the DT respondents NNS felt VVD service NN quality NN had VHD declined VVN when WRB banks NNS were VBD integrated VVN , , 43 CD per IN cent NN felt VVD their PP$ organization NN s NN business NN had VHD become VVN less RBR important JJ to TO the DT bank NN as IN a DT result NN of IN the DT merger NN , , almost RB half RB said VVD relationship NN officers NNS lacked VVD adequate JJ knowledge NN of IN the DT bank NN s PP capabilities NNS and CC 47 CD per IN cent NN perceived VVN banks NNS as RB less RBR loyal JJ after IN the DT merger NN . SENT More RBR positively RB , , 37 CD per IN cent NN of IN treasurers NNS said VVD the DT banks NNS offered VVD a DT broader JJR array NN of IN services NNS following VVG consolidation NN and CC 61 CD per IN cent NN of IN respondents NNS conceded VVD that IN the DT banks NNS were VBD financially RB stronger JJR as IN a DT result NN . SENT Creating VVG shareholder NN value NN Increasing VVG shareholder NN value NN is VBZ generally RB held VVN to TO be VB the DT paramount JJ objective NN of IN most JJS M NP As IN today NN . SENT However RB , , experience NN from IN most JJS M NP As IN in IN the DT mid JJ 1980 CD s PP is VBZ not RB very RB encouraging JJ in IN this DT regard NN . SENT At IN that DT time NN , , many JJ newly RB merged VVN banks NNS and CC insurance NN companies NNS found VVD their PP$ cost NN structures NNS increased VVD , , resulting VVG in IN duplication NN of IN structures NNS and CC costs NNS rather RB than IN predicted VVN savings NNS . SENT The DT much RB slower JJR growth NN levels NNS in IN the DT 1990 CD s PP and CC the DT high JJ premiums NNS usually RB paid VVN to TO shareholders NNS of IN target NN companies NNS , , mean VVP that IN the DT restructuring NN needed VVD to TO achieve VV satisfactory JJ cost NN savings NNS from IN mergers NNS can MD only RB be VB obtained VVN with IN much RB deeper JJR cost NN cutting NN , , imperilling VVG the DT ability NN of IN merged JJ companies NNS to TO achieve VV the DT higher JJR levels NNS of IN sales NNS revenue NN required VVN to TO repay VV merger NN related JJ debt NN and CC increase NN shareholder NN value NN . SENT According VVG to TO Professor NP Laurence NP Booth NP of IN the DT Rotman NP School NP of IN Management NP , , University NP of IN Toronto NP , , the DT economic JJ justification NN for IN creating VVG shareholder NN value NN as IN the DT overriding JJ objective NN of IN the DT firm NN primarily RB comes VVZ from IN an DT assumption NN implicit JJ in IN most JJS of IN the DT finance NN literature NN that IN all PDT the DT markets NNS in IN which WDT the DT firm NN operates VVZ are NN perfectly RB competitive JJ . SENT Employees NNS are VBP indifferent JJ if IN the DT firm NN s PP employment NN is VBZ increased VVN or CC decreased VVN . SENT they PP get VVP market NN wages NNS if IN they PP are VBP hired VVN and CC can MD immediately RB obtain VV equivalent JJ jobs NNS elsewhere RB if IN they PP are VBP laid VVN off RP . SENT Similarly RB , , suppliers NNS and CC consumers NNS can MD switch VV to TO other JJ firms NNS and CC government NN taxes NNS will MD be VB the DT same JJ regardless RB of IN the DT firm NN s PP operations NNS . SENT As IN a DT result NN , , the DT welfare NN of IN all DT other JJ stakeholders NNS in IN the DT firm NN is VBZ unaffected JJ by IN the DT firm NN s PP operations NNS , , so RB that IN maximizing VVG the DT welfare NN of IN stockholders NNS causes VVZ no DT loss NN to TO other JJ stakeholders NNS . SENT The DT implicit JJ assumption NN underlying VVG most JJS of IN the DT shareholder NN value NN literature NN is VBZ that IN there EX are VBP no DT other JJ stakeholders NNS in IN the DT firm NN , , except IN the DT stockholders NNS . SENT The DT reality NN is VBZ that IN such JJ hypotheses NNS are VBP questionable JJ , , at IN least JJS for IN large JJ businesses NNS . SENT In IN many JJ of IN the DT less RBR diversified JJ European JJ economies NNS , , the DT impact NN of IN certain JJ large JJ firms NNS is VBZ critical JJ for IN the DT functioning NN of IN their PP$ economies NNS as IN a DT result NN of IN which WDT there EX is VBZ usually RB worker NN representation NN on IN the DT board NN of IN directors NNS and CC the DT legal JJ responsibility NN of IN the DT board NN is VBZ to TO take VV into IN account NN factors NNS other JJ than IN stockholders NNS interests NNS . SENT At IN the DT other JJ extreme NN , , creating VVG shareholder NN value NN has VHZ become VVN the DT mantra NN of IN corporate JJ United NP States NPS , , since IN this DT country NN has VHZ by IN far RB the DT most RBS diversified JJ economy NN and CC the DT most RBS competitive JJ markets NNS . SENT 20 CD At IN its PP$ most RBS basic JJ , , creating VVG shareholder NN value NN means VVZ that IN the DT market NN favours VVZ firms NNS that WDT increase VVP the DT productive JJ use NN of IN their PP$ assets NNS by IN increasing VVG turnover NN ratios NNS , , margins NNS and CC profitability NN . SENT Increasing VVG sales NNS growth NN adds VVZ shareholder NN value NN as RB long RB as IN reinvestment NN earns VVZ returns NNS that WDT exceed VVP the DT firm NN s PP cost VVD of IN capital NN . SENT Conversely RB , , firms NNS without IN such JJ opportunities NNS destroy VVP shareholder NN value NN by IN reinvesting VVG and CC should MD return VV the DT money NN to TO shareholders NNS through IN dividend NN increases NNS or CC share NN buy NN backs NNS . SENT These DT are VBP largely RB motherhood NN statements NNS in IN finance NN , , but CC are VBP often RB not RB reflected VVN either RB in IN managerial JJ policies NNS or CC corporate JJ culture NN . SENT The DT KPMG NP study NN cited VVD above IN reports NNS that IN shareholder NN value NN maximization NN is VBZ specified VVN by IN only RB 20 CD per IN cent NN of IN executives NNS polled VVN in IN the DT survey NN as IN an DT objective NN of IN M NP As RB . SENT The DT basic JJ argument NN that IN M NP As IN increase NN shareholder NN value NN through IN exploitation NN of IN synergies NNS is VBZ based VVN on IN the DT assumption NN that IN the DT combined JJ organization NN can MD be VB operated VVN in IN a DT way NN that WDT generates VVZ greater JJR value NN than IN would MD be VB the DT sum NN of IN the DT value NN generated VVN by IN the DT stand NN alone JJ companies NNS the DT 2 CD 2 CD 4 CD equation NN . SENT Potentially RB , , synergies NNS may MD be VB extracted VVN from IN cross NN selling NN products NNS , , increasing VVG economies NNS of IN scale NN , , elimination NN of IN duplicated VVN functions NNS and CC premises NNS and CC greater JJR market NN capitalization NN and CC therefore RB lower JJR financing NN costs NNS . SENT 21 CD Studies NNS tracking VVG shareholder NN returns NNS for IN every DT large JJ , , publicly RB traded VVN North JJ American JJ acquirer NN in IN the DT 1990 CD s PP showed VVD that IN only RB 44 CD per IN cent NN of IN deals NNS initiated VVN by IN these DT companies NNS yielded VVD superior JJ investor NN returns NNS . SENT On IN average NN , , acquirers NNS underperformed VVN their PP$ respective JJ industries NNS by IN 3 CD per IN cent NN . SENT Banking NN deals NNS in IN the DT United NP States NPS performed VVD even RB worse JJR . SENT Only RB 18 CD per IN cent NN of IN acquirers NNS provided VVD superior JJ returns NNS to TO shareholders NNS . SENT Consolidators NNS underperformed VVN the DT total JJ return NN index NN for IN their PP$ industry NN by IN an DT average NN of IN 13 CD per IN cent NN during IN the DT three CD years NNS following NN deals VVZ their PP$ shareholders NNS were VBD 13 CD per IN cent NN worse RBR off RB than IN if IN they PP had VHD simply RB held VVN a DT bank NN industry NN portfolio NN mirroring VVG the DT index NN . SENT According VVG to TO a DT 1999 CD Mitchell NP Madison NP Group NP study NN , , bank NN acquirers NNS in IN North NP America NP lagged VVD the DT market NN by IN an DT average NN of IN 13 CD per IN cent NN in IN the DT three CD years NNS following VVG their PP$ transactions NNS . SENT It PP was VBD found VVN that IN mergers NNS typically RB rewarded VVN only RB the DT target NN s PP shareholders NNS , , disserving VVG investors NNS in IN the DT acquiring VVG entity NN . SENT 22 CD Observers NNS have VHP given VVN different JJ reasons NNS for IN the DT failure NN in IN successful JJ exploitation NN of IN synergetic JJ potential NN , , including VVG the DT fact NN that IN while NN firms NNS have VHP been VBN skilful JJ at IN post NN merger NN cost NN cutting NN , , achieving VVG revenue NN synergies NNS is VBZ a DT fundamentally RB different JJ and CC more RBR challenging JJ task NN . SENT When WRB pursuing VVG cost NN savings NNS , , a DT company NN mostly RB confronts VVZ internal JJ decisions NNS which WDT , , though IN often RB difficult JJ , , are VBP nevertheless RB within IN the DT acquirers NNS power NN to TO make VV . SENT Managers NNS can MD decide VV whom WP to TO fire NN , , which WDT headquarters NNS to TO abandon VV , , which WDT branches NNS to TO close VV , , which WDT systems NNS to TO use VV and CC so RB on IN . SENT Achieving VVG revenue NN synergy NN , , by IN contrast NN , , requires VVZ decisions NNS from IN powerful JJ external JJ constituents NNS the DT customers NNS . SENT They PP must MD be VB offered VVN an DT attractive JJ value NN proposition NN in IN order NN to TO keep VV their PP$ accounts NNS at IN the DT merged JJ entity NN and CC expand VV their PP$ business NN with IN it PP . SENT Branch NN rationalization NN models NNS typically RB do VVP a DT good JJ job NN assessing VVG the DT likelihood NN of IN customer NN attrition NN , , but CC fail VVP to TO take VV into IN account NN a DT branch NN s PP value VVP in IN attracting VVG future JJ customers NNS so RB that IN managers NNS who WP wield VV the DT cost NN cutting VVG axe NN too RB heavily RB may MD inadvertently RB truncate VV future JJ growth NN and CC the DT very RB same JJ shareholder NN value NN the DT deal NN was VBD supposed VVN to TO increase VV . SENT In IN 1999 CD , , the DT European NP Central NP Bank NP ECB NP expressed VVD concern NN regarding VVG the DT possibility NN that IN some DT banks NNS might MD be VB forced VVN into IN high JJ risk NN strategies NNS , , defined VVN as IN those DT of IN the DT rather RB short JJ term NN oriented JJ shareholder NN value NN philosophy NN . SENT Shareholder NN value NN was VBD an DT important JJ element NN in IN the DT failed JJ merger NN attempt NN between IN Germany NP s PP Deutsche NP Bank NP and CC Dresdner NP Bank NP in IN 2000 CD . SENT The DT attempted JJ merger NN , , justified VVN on IN shareholder NN maximization NN , , would MD have VH represented VVN a DT break NN from IN the DT post NN war NN consensus NN shared VVN in IN much JJ of IN Europe NP that WDT saw VVD companies NNS as IN accountable JJ not RB only RB to TO shareholders NNS but CC also RB to TO other JJ stakeholders NNS such JJ as IN workers NNS , , suppliers NNS and CC the DT wider JJR community NN . SENT Early JJ adopters NNS of IN shareholder NN value NN goals NNS include VVP Lloyds NP TSB NP and CC banks NNS in IN Scandinavia NP , , Spain NP and CC the DT Benelux NP countries NNS . SENT In IN 1999 CD , , ABN NP AMRO NP of IN the DT Netherlands NPS announced VVD a DT policy NN shift NN to TO shareholder NN value NN , , requiring VVG greater JJR focus NN on IN the DT expansion NN of IN highly RB profitable JJ activities NNS like IN asset NN management NN , , private JJ banking NN and CC corporate JJ finance NN , , all DT of IN which WDT require VVP only RB relatively RB limited JJ capital NN . SENT Such PDT a DT shift NN in IN management NN focus NN involves VVZ breaking VVG down RP the DT business NN into IN smaller JJR units NNS designed VVN around IN products NNS or CC groups NNS of IN customers NNS and CC analysing VVG the DT return NN on IN capital NN employed VVN by IN each DT unit NN . SENT Managers NNS are VBP expected VVN to TO allocate VV shared JJ costs NNS and CC put VV valuations NNS on IN capital NN assets NNS , , with IN a DT view NN to TO identifying VVG and CC discarding VVG activities NNS determined VVN to TO be VB making VVG less JJR than IN the DT firms NNS internal JJ rate NN of IN return NN . SENT Business NN units NNS not RB yielding VVG sufficient JJ returns NNS on IN capital NN are VBP either RB sold VVN or CC closed VVN , , or CC restructured VVN to TO produce VV higher JJR returns NNS on IN less JJR capital NN , , while IN low JJ margin NN but CC necessary JJ parts NNS of IN the DT business NN , , such JJ as IN payments NNS processing NN , , are VBP pooled VVN between IN several JJ banks NNS or CC contracted VVD out RP to TO specialists NNS under IN the DT rationale NN that IN such JJ parts NNS may MD be VB the DT necessary JJ price NN to TO pay VV to TO hold VV onto IN customers NNS who WP may MD purchase VV other JJ , , higher JJR return NN , , services NNS . SENT Bancassurance NP Bancassurance NP the DT selling NN of IN pensions NNS and CC insurance NN products NNS by IN or CC through IN banks NNS covers VVZ diverse JJ economic JJ activities NNS . SENT In IN the DT same JJ way NN that IN consumer NN credit NN is VBZ very RB different JJ from IN money NN management NN in IN banking NN , , life NN and CC property NN insurance NN activities NNS are VBP also RB extremely RB dissimilar JJ . SENT Insurance NN companies NNS and CC banks NNS look VVP like IN adopting VVG bancassurance NN as IN one CD of IN a DT range NN of IN multi NNS distribution NN options NNS in IN the DT Internet NN age NN , , although IN some DT analysts NNS doubt VVP the DT viability NN of IN M NP As IN between IN banks NNS and CC insurance NN companies NNS on IN the DT grounds NNS that IN their PP$ core NN occupations NNS remain VVP very RB different JJ despite IN the DT growth NN and CC diversification NN of IN financial JJ products NNS . SENT Similar JJ M NP As IN among IN companies NNS in IN comparably RB different JJ sectors NNS , , e NN . SENT g NN . SENT between IN chemical NN and CC pharmaceuticals NNS enterprises NNS , , auto NN and CC aeronautical JJ companies NNS , , have VHP frequently RB failed VVN . SENT Nevertheless RB bancassurance NN has VHZ been VBN a DT key JJ consideration NN in IN some DT recent JJ European JJ financial JJ sector NN M NP As IN as RB increased VVN control NN over IN bank NN branch NN networks NNS is VBZ considered VVN to TO provide VV expanded JJ distribution NN channels NNS for IN insurance NN products NNS . SENT This DT development NN partly RB reflects VVZ rapid JJ convergence NN between IN banking NN and CC insurance NN . SENT 23 NP Had VHD the DT merger NN between IN the DT Deutsche NP Bank NP and CC Dresdner NP Bank NP succeeded VVD , , Allianz NP , , a DT major JJ shareholder NN of IN both DT , , would MD have VH taken VVN a DT substantial JJ stake NN in IN the DT banks NNS retail VVP operations NNS to TO secure VV access NN to TO their PP$ branch NN networks NNS and CC counteract VV the DT domination NN of IN the DT insurance NN market NN by IN sales NNS agents NNS . SENT Allianz NP s VVZ 14 CD , , 000 CD tied VVN agents NNS and CC 35 CD , , 000 CD non JJ tied VVN agents NNS handle VV 80 CD per IN cent NN of IN life NN insurance NN sales NNS and CC almost RB all DT sales NNS of IN property NN and CC casualty NN insurance NN . SENT Equally RB , , bancassurance NN was VBD an DT important JJ factor NN in IN the DT 1999 CD M NP A DT contest NN involving VVG France NP s PP BNP NP , , Paribas NP and CC Soci NP t NN G NP n NN rale NN SocGen NP . SENT CGU NP , , wanting VVG to TO protect VV its PP$ position NN against IN Axa NP in IN France NP , , unexpectedly RB intervened VVD , , taking VVG a DT 500 CD million CD stake NN in IN SocGen NP to TO help VV it PP see VV off RP a DT takeover NN by IN BNP NP . SENT CGU NP played VVD a DT similar JJ supportive JJ role NN in IN the DT Royal NP Bank NP of IN Scotland NP s PP successful JJ hostile JJ bid NN for IN NatWest NP in IN exchange NN for IN an DT agreement NN to TO buy VV 50 CD per IN cent NN stakes NNS in IN NatWestLife NP and CC RBS NP s PP own VVP life NN assurance NN subsidiary NN . SENT It PP will MD manufacture VV the DT products NNS and CC invest VV the DT funds NNS under IN management NN in IN the DT joint JJ venture NN , , which WDT will MD give VV it PP access VV to TO about IN 2 CD , , 000 CD bank NN branches NNS . SENT CGU NP also RB took VVD over RP as IN RBS NP s PP partner NN from IN Scottish NP Widows NP , , the DT mutual JJ life NN and CC pensions NNS group NN that WDT agreed VVD to TO a DT 6 CD . SENT 7 CD billion CD offer NN in IN 1999 CD from IN Lloyds NP TSB NP , , a DT direct JJ competitor NN of IN its PP$ Edinburgh NP neighbour NN . SENT Lloyds NP s PP purchase VVP of IN Scottish NP Widows NP marks VVZ the DT most RBS ambitious JJ attempt NN yet RB to TO make VV bancassurance NN work NN in IN a DT market NN where WRB it PP has VHZ historically RB failed VVN to TO thrive VV . SENT CGU NP s PP recent JJ 20 CD billion CD merger NN with IN life NN assurance NN rival JJ Norwich NP Union NP should MD increase VV the DT resources NNS devoted VVN to TO British JJ bancassurance NN . SENT Prudential NP had VHD agreed VVN to TO buy VV NatWest NP s PP life NN assurance NN business NN if IN the DT Bank NP of IN Scotland NP had VHD won VVN the DT battle NN and CC with IN it PP exclusive JJ rights NNS to TO sell VV the DT group NN s PP life NN , , pensions NNS and CC mutual JJ fund NN products NNS through IN NatWest NP branches NNS . SENT Bancassurance NP is VBZ also RB a DT key JJ priority NN for IN Banca NP Intesa NP , , Italy NP s VVZ largest JJS banking NN group NN , , which WDT is VBZ poised VVN to TO expand VV in IN Europe NP after IN completing VVG its PP$ integration NN with IN Banca NP Commerciale NP Italiana NP BCI NP . SENT The DT expanded JJ group NN wants VVZ to TO develop VV synergies NNS with IN one CD of IN its PP$ large JJ shareholders NNS , , the DT French JJ bank NN Cr NP dit NP Agricole NP . SENT At IN the DT same JJ time NN , , the DT BCI NP acquisition NN reinforces VVZ the DT presence NN of IN Commerzbank NP in IN the DT Intesa NP group NN and CC increases VVZ the DT weight NN of IN Assicurazioni NP Generali NP , , Italy NP s PP leading VVG insurer NN . SENT Intesa NP has VHZ announced VVN intentions NNS to TO develop VV bancassurance NN with IN both DT Cr NP dit NN Agricole NP and CC Generali NP . SENT Fortis NP , , the DT Belgian JJ Netherlands NP financial JJ group NN , , plans VVZ a DT bancassurance NN platform NN in IN the DT Benelux NP countries NNS , , with IN the DT highest JJS market NN share NN in IN some DT segments NNS . SENT Banking NN industry NN restructuring NN is VBZ often RB accompanied VVN by IN a DT blurring VVG of IN boundaries NNS among IN different JJ categories NNS of IN financial JJ intermediation NN and CC financial JJ conglomerates NNS have VHP special JJ prudential JJ problems NNS given VVN that IN their PP$ composite JJ units NNS may MD fall VV under IN different JJ supervisory JJ agencies NNS . SENT The DT problem NN is VBZ aggravated VVN when WRB subsidiaries NNS operations NNS are VBP spread VVN over IN many JJ countries NNS . SENT Since IN the DT mid JJ 1980 CD s PP , , cross VV shareholding NN and CC other JJ forms NNS of IN partnership NN between IN banks NNS and CC insurance NN companies NNS have VHP grown VVN both DT at IN the DT national JJ and CC international JJ levels NNS . SENT The DT trend NN is VBZ particularly RB striking JJ in IN Denmark NP , , France NP , , Germany NP , , the DT Netherlands NP , , Spain NP and CC the DT United NP Kingdom NP . SENT Table NN 1 CD . SENT 1 CD . SENT Bancassurance NP market NN share NN in IN western JJ Europe NP 1997 CD Life NP insurance NN Non JJ life NN insurance NN Germany NP 10 CD 5 CD Belgium NN 19 CD 4 CD Spain NP 50 CD 19 CD France NP 60 CD 4 CD Italy NP 20 CD 1 CD Netherlands NP 20 CD 15 CD United NP Kingdom NP 22 CD 1 CD Sweden NP 20 CD 1 CD Source NN . SENT Economic NP and CC Social NP Council NP . SENT Panorama NN et CC volution NN de FW la FW distribution NN d NN assurance NN en IN Europe NP Paris NP , , 1997 CD . SENT Bancassurance NN comparable JJ to TO that DT in IN Europe NP does VVZ not RB exist VV in IN Japan NP because IN the DT banking NN law NN forbids VVZ credit NN institutions NNS involvement NN in IN non JJ banking NN activities NNS . SENT Nonetheless RB , , links NNS exist VVP especially RB in IN common JJ membership NN of IN keiretsu NN , , multipolar JJ groups NNS characterized VVN by IN very RB close JJ collaboration NN among IN members NNS , , usually RB organized VVN around IN a DT bank NN , , a DT manufacturing NN company NN , , a DT trading NN firm NN , , etc FW . SENT Bancassurance NP is VBZ also RB developing VVG at IN a DT rapid JJ pace NN in IN the DT United NP States NPS , , as RB evidenced VVN by IN the DT creation NN of IN the DT largest JJS bancassurance NN company NN with IN the DT merger NN between IN Citicorp NP and CC Travelers NP Group NP . SENT 2 LS . SENT Obstacles NNS to TO success NN in IN financial JJ services NNS M NP As IN The DT 1993 CD ILO NP study NN on IN banking NN 24 CD noted VVD that IN efficiency NN improvements NNS through IN mergers NNS were VBD frequently RB overestimated VVN . SENT Contemporary JJ research NN confirms VVZ this DT observation NN . SENT Worldwide NP , , two CD thirds NNS of IN mergers NNS end NN in IN failure NN some RB because IN of IN staff NN hostility NN and CC others NNS because IN of IN insufficient JJ preparation NN and CC inability NN to TO integrate VV personnel NNS and CC systems NNS . SENT Even RB more JJR failures NNS are VBP due JJ to TO irreconcilable JJ differences NNS in IN corporate JJ cultures NNS and CC management NN . SENT This DT chapter NN examines VVZ a DT number NN of IN obstacles NNS to TO mergers NNS and CC acquisitions NNS in IN the DT financial JJ services NNS . SENT The DT race NN for IN size NN An DT obstacle NN course NN . SENT Most RBS retail JJ banks NNS try VVP to TO obtain VV economies NNS of IN scale NN by IN expanding VVG either RB by IN extending VVG their PP$ networks NNS or CC widening VVG their PP$ range NN of IN products NNS and CC services NNS . SENT However RB , , there EX is VBZ no DT automatic JJ link NN between IN size NN and CC profitability NN . SENT In IN fact NN , , this DT attempt NN to TO expand VV can MD often RB produce VV the DT opposite JJ effect NN . SENT The DT complexity NN of IN managing VVG large JJ operations NNS can MD nullify VV the DT benefits NNS and CC losses NNS related VVN to TO top VV heavy JJ organization NN are VBP often RB underestimated VVN . SENT The DT lack NN of IN transparency NN of IN financial JJ activities NNS and CC the DT fragmented JJ nature NN of IN debts NNS and CC capital NN , , especially RB for IN megabanks NP , , prevent VV creditors NNS , , shareholders NNS and CC regulators NNS from IN imposing VVG discipline NN . SENT Internet NN banking NN is VBZ also RB a DT challenge NN with IN which WDT large JJ banks NNS have VHP to TO contend VV . SENT Moreover RB , , public JJ policy NN requires VVZ banks NNS , , as RB well RB as IN other JJ financial JJ institutions NNS , , to TO be VB closely RB supervised VVN because IN their PP$ activities NNS have VHP such JJ impact NN on IN the DT financial JJ system NN and CC the DT economy NN as IN a DT whole NN . SENT Strong JJ , , efficient JJ and CC profitable JJ financial JJ institutions NNS are VBP vital JJ to TO economic JJ success NN , , especially RB as IN an DT engine NN of IN economic JJ vitality NN through IN their PP$ role NN in IN creating VVG and CC maintaining VVG credit NN systems NNS for IN other JJ sectors NNS , , not RB only RB nationally RB but CC globally RB . SENT In IN this DT framework NN , , regulation NN is VBZ essential JJ to TO avoid VV system NN failures NNS that WDT have VHP devastating JJ consequences NNS , , as RB was VBD the DT case NN in IN South NP East NP Asia NP in IN 1997 CD . SENT National JJ regulatory JJ frameworks NNS are VBP therefore RB being VBG revised VVN to TO ensure VV financial JJ services NNS adhere VV to TO prudential JJ principles NNS and CC competitive JJ imperatives NNS . SENT Regulation NN During IN the DT 1990 CD s PP , , financial JJ system NN controls NNS in IN many JJ countries NNS were VBD strengthened VVN and CC initiatives NNS were VBD taken VVN to TO increase VV transparency NN of IN institutions NNS financial JJ statements NNS and CC their PP$ risk NN management NN practices NNS . SENT For IN instance NN , , the DT central JJ banks NNS of IN the DT Group NP of IN Ten CD adopted VVD a DT report NN in IN 1994 CD on IN procedures NNS for IN communication NN on IN market NN and CC credit NN risk NN . SENT in IN 1995 CD , , the DT Basel NP Committee NP on IN Banking NP Supervision NP and CC the DT International NP Organization NP of IN Securities NPS Commissions NNS IOSCO NP published VVD guidelines NNS on IN the DT subject NN . SENT and CC in IN 1997 CD the DT Basel NP Committee NP adopted VVD 25 CD core NN principles NNS for IN effective JJ banking NN supervision NN widening VVG the DT areas NNS for IN international JJ harmonization NN . SENT In IN more JJR general JJ terms NNS , , central JJ banks NNS wanted VVD to TO make VV firms NNS assume VV greater JJR responsibility NN for IN managing VVG liquidity NN and CC credit NN risk NN in IN payment NN and CC settlement NN systems NNS . SENT When WRB financial JJ difficulties NNS were VBD widespread JJ in IN some DT cases NNS , , the DT authorities NNS opted VVD for IN a DT rationalization NN of IN the DT banking NN sector NN . SENT Trade NN union NN organizations NNS , , such JJ as IN the DT International NP Federal NP of IN Commercial NP , , Clerical NN , , Professional NP and CC Technical NP Employees NPS FIET NP , , now RB UNI NN , , have VHP recognized VVN that IN with IN banking NN systems NNS there EX is VBZ a DT need NN to TO accommodate VV wider JJR interests NNS than IN the DT financial JJ interests NNS of IN the DT individual JJ bank NN or CC even RB of IN banks NNS collectively RB , , contending VVG that IN there EX is VBZ a DT good JJ public JJ interest NN associated VVN with IN systemic JJ stability NN that WDT affects VVZ the DT monetary JJ system NN as IN well RB as RB national JJ and CC international JJ economies NNS . SENT They PP argue VVP for IN a DT broad JJ based VVN , , independent JJ commission NN to TO look VV at IN regulation NN of IN international JJ financial JJ markets NNS , , rather RB than IN the DT behind RB closed VVN doors NNS approach NN being VBG adopted VVN for IN the DT Financial NP Stability NP Forum NP FSF NP at IN Basel NP . SENT FIET NP UNI NN believes VVZ that IN such PDT a DT Commission NP should MD redefine VV the DT role NN of IN the DT key JJ institutions NNS IMF NP , , World NP Bank NP , , OECD NP , , Bank NP for IN International NP Settlements NP , , Basel NP Committee NP on IN Banking NP Supervision NP to TO create VV a DT global JJ system NN of IN governance NN for IN international JJ financial JJ markets NNS and CC seek VV to TO ensure VV that DT structural JJ adjustment NN programmes VVZ also RB consider VV human JJ rights NNS , , job NN creation NN and CC poverty NN reduction NN . SENT Among IN the DT measures NNS advocated VVN to TO curb VV the DT damaging JJ effects NNS of IN short JJ term NN capital NN flows NNS are VBP . SENT an DT international JJ tax NN on IN foreign JJ exchange NN transactions NNS . SENT minimum JJ deposit NN requirements NNS with IN stable JJ dollar NN , , euro NP and CC yen NN financial JJ blocs NNS . SENT and CC open JJ and CC transparent JJ banking NN systems NNS with IN effective JJ disclosure NN and CC satisfactory JJ minimum JJ reserves NNS . SENT In IN the DT United NP States NPS , , several JJ federal JJ banking NN agencies NNS and CC the DT Justice NP Department NP have VHP authority NN to TO review VV all DT bank NN merger NN proposals NNS . SENT Policy NN standards NNS for IN bank NN consolidation NN were VBD modified VVN in IN the DT 1980 CD s PP on IN the DT rationale NN that IN deregulation NN and CC market NN innovation NN had VHD substantially RB made VVN the DT structure NN of IN local JJ banking NN markets NNS more RBR competitive JJ . SENT Their PP$ modified JJ policy NN has VHZ resulted VVN in IN approval NN of IN almost RB all DT bank NN mergers NNS , , including VVG those DT of IN the DT largest JJS banking NN organizations NNS . SENT Some DT organizations NNS feel VVP that IN there EX is VBZ little JJ evidence NN that IN consumers NNS and CC small JJ businesses NNS have VHP gained VVN from IN greater JJR efficiency NN and CC competition NN . SENT Even RB though RB carefully RB scrutinized VVN for IN anti JJ competitive JJ structural JJ effects NNS on IN local JJ markets NNS , , they PP have VHP had VHD anti JJ competitive JJ consequences NNS . SENT and CC the DT bank NN consolidation NN movement NN is VBZ producing VVG new JJ structural JJ configurations NNS that WDT tend VVP to TO restrain VV competition NN . SENT 25 CD The DT repeal NN of IN the DT Depression NP era NN Glass NP Steagall NP Act NP in IN the DT United NP States NPS in IN 1999 CD lifted VVD long JJ standing NN prohibitions NNS on IN banks NNS , , stockbroking NN houses NNS , , security NN firms NNS and CC insurance NN companies NNS from IN venturing VVG into IN one NN another DT s PP businesses NNS . SENT These DT constraints NNS had VHD already RB been VBN eased VVN in IN 1997 CD , , allowing VVG a DT number NN of IN important JJ acquisitions NNS during IN the DT period NN 1997 CD 98 CD . SENT These DT reforms NNS are VBP expected VVN to TO result VV in IN the DT emergence NN of IN financial JJ services NNS giants NNS , , with IN United NP States NPS consumers NNS able JJ to TO obtain VV financial JJ services NNS and CC products NNS from IN banks NNS , , stockbrokers NNS or CC insurance NN companies NNS . SENT In IN the DT Caribbean NP , , an DT important JJ issue NN has VHZ been VBN regulation NN of IN near JJ banks NNS . SENT Until IN recently RB , , these DT were VBD either RB unregulated JJ or CC subject JJ to TO less RBR stringent JJ regulation NN than IN commercial JJ banks NNS as IN they PP were VBD considered VVN outside IN the DT responsibility NN or CC supervision NN of IN the DT central JJ bank NN . SENT Within IN a DT framework NN of IN liberalization NN and CC deregulation NN , , changes NNS have VHP been VBN made VVN to TO strengthen VV supervisory JJ capability NN in IN the DT region NN . SENT In IN Jamaica NP , , the DT Financial NP Sector NN Adjustment NN Company NP FINSAC NP was VBD formed VVN in IN 1997 CD to TO oversee VV the DT restructuring NN and CC consolidation NN of IN problem NN institutions NNS . SENT The DT restructuring NN exercise NN consisted VVD of IN three CD phases NNS of IN operations NNS . SENT intervention NN , , rehabilitation NN and CC divestment NN . SENT The DT intervention NN phase NN involved VVD the DT negotiation NN of IN agreements NNS with IN troubled JJ institutions NNS with IN the DT aim NN of IN either DT closing NN , , supporting VVG or CC acquiring VVG them PP in IN some DT cases NNS involving VVG the DT Minister NP of IN Finance NP who WP would MD put VV the DT institution NN under IN temporary JJ management NN under IN the DT powers NNS provided VVN in IN banking NN laws NNS . SENT Intervention NN sometimes RB involved VVD the DT negotiated VVN acquisition NN of IN the DT group NN for IN a DT token JJ amount NN , , with IN FINSAC NP thereafter RB assuming VVG its PP$ assets NNS and CC liabilities NNS . SENT The DT extent NN of IN intervention NN is VBZ reflected VVN by IN the DT fact NN that IN FINSAC NP now RB has VHZ investments NNS in IN over IN 150 CD companies NNS , , including VVG 15 CD banks NNS and CC 21 CD insurance NN companies NNS . SENT The DT banking NN system NN in IN the DT Republic NP of IN Korea NP has VHZ been VBN undergoing VVG extreme JJ declines NNS in IN balance NN sheet NN quality NN since IN 1997 CD . SENT To TO some DT degree NN , , the DT problems NNS of IN the DT banking NN industry NN stem NN from IN longer JJR term NN structural JJ problems NNS , , such JJ as IN low JJ profitability NN , , relatively RB undeveloped JJ credit NN analysis NN systems NNS and CC lack NN of IN independence NN on IN the DT part NN of IN bank NN management NN . SENT Owing VVG to TO the DT complex JJ corporate JJ structures NNS of IN chaebols NNS and CC extensive JJ cross NN guarantees NNS , , the DT number NN of IN insolvencies NNS mounted VVD rapidly RB in IN the DT late JJ 1990 CD s PP . SENT The DT Government NP has VHZ introduced VVN measures NNS to TO reconstruct VV the DT financial JJ system NN in IN line NN with IN practices NNS in IN other JJ OECD NP countries NNS , , including VVG a DT thorough JJ overhaul NN of IN institutions NNS and CC practices NNS to TO supervise VV institutions NNS and CC markets NNS . SENT Consolidation NN of IN existing VVG supervisory JJ bodies NNS led VVN to TO the DT creation NN of IN a DT new JJ agency NN the DT Financial NP Supervisory JJ Commission NP FSC NP to TO supervise VV all DT financial JJ markets NNS and CC take VV charge NN of IN restructuring VVG the DT banking NN system NN in IN 1998 CD . SENT Foreign JJ ownership NN of IN up RB to TO 100 CD per IN cent NN became VVD possible JJ . SENT As IN foreign JJ owners NNS reach VVP the DT thresholds NNS of IN 10 CD per IN cent NN , , 25 CD per IN cent NN and CC 33 CD per IN cent NN of IN total JJ equity NN , , they PP will MD be VB subject JJ to TO increasingly RB strong JJ review NN by IN the DT FSC NN . SENT In IN May NP 1999 CD , , the DT European NP Commission NP published VVD an DT action NN plan NN for IN implementing VVG the DT framework NN for IN financial JJ markets NNS 26 CD The DT document NN notes VVZ that IN , , although IN considerable JJ strides NNS have VHP been VBN made VVN since IN 1973 CD towards IN providing VVG a DT secure JJ prudential JJ environment NN , , the DT Union NP s PP financial JJ markets NNS remain VVP segmented VVN and CC business NN and CC consumers NNS continue VVP to TO be VB deprived VVN of IN direct JJ access NN to TO cross VV border NN financial JJ institutions NNS . SENT The DT Commission NP underlines VVZ the DT necessity NN of IN creating VVG a DT common JJ framework NN to TO guarantee VV the DT transparency NN and CC fairness NN of IN public JJ acquisition NN bids NNS which WDT protect VVP minority NN shareholders NNS . SENT The DT proposal NN for IN a DT 13 CD th NN Company NP Law NP Directive NN takeover NN bids NNS is VBZ intended VVN to TO harmonize VV legislation NN among IN Member NP States NPS . SENT In IN June NP 2000 CD , , European JJ leaders NNS were VBD on IN the DT verge NN of IN launching VVG a DT sweeping JJ review NN of IN how WRB to TO manage VV a DT single JJ market NN in IN financial JJ services NNS , , reflecting VVG concerns NNS that IN the DT supervision NN and CC regulation NN of IN financial JJ services NNS in IN Europe NP could MD not RB cope VV with IN radical JJ change NN in IN the DT banking NN and CC insurance NN sectors NNS caused VVN by IN the DT launch NN of IN the DT euro NP , , cross NN border NN mergers NNS and CC the DT impact NN of IN globalization NN . SENT Many JJ banks NNS and CC financial JJ services NNS providers NNS have VHP urged VVN the DT EU NP to TO move VV towards IN a DT more RBR integrated JJ European JJ capital NN market NN . SENT But CC banking NN supervision NN and CC regulation NN remain VVP mostly RB the DT responsibility NN of IN national JJ authorities NNS . SENT European JJ banks NNS argue VVP that IN the DT rise NN in IN Internet NN banking NN will MD highlight VV the DT discrepancies NNS in IN national JJ legislation NN and CC that IN new JJ rules NNS for IN electronic JJ commerce NN will MD leave VV physical JJ banks NNS subject JJ to TO a DT different JJ set NN of IN rules NNS from IN their PP$ online JJ competitors NNS . SENT At IN the DT national JJ level NN in IN Europe NP , , bank NN mergers NNS are VBP subject JJ to TO review VV by IN the DT banking NN authorities NNS and CC often RB may MD even RB require VV prior JJ government NN approval NN . SENT In IN European JJ countries NNS such JJ as IN Italy NP and CC France NP , , all DT takeover NN bids NNS must MD obtain VV the DT approval NN of IN the DT respective JJ supervisory JJ authority NN , , which WDT is VBZ not RB always RB forthcoming JJ . SENT In IN 1999 CD , , applications NNS by IN major JJ banks NNS in IN both DT countries NNS were VBD blocked VVN . SENT In IN France NP the DT supervisory JJ authorities NNS often RB base VVP their PP$ decision NN on IN an DT appreciation NN of IN the DT effects NNS of IN the DT merger NN on IN the DT future JJ health NN of IN the DT banking NN system NN , , after IN reviewing VVG each DT institution NN s PP accounts VVZ to TO ascertain VV whether IN prudential JJ rules NNS would MD be VB respected VVN , , especially RB regarding VVG the DT ratios NNS between IN debt NN and CC capital NN levels NNS . SENT The DT exercise NN is VBZ thus RB focused VVN on IN avoiding VVG risk NN to TO the DT system NN and CC often RB does VVZ not RB concern VV itself PP with IN the DT probability NN that IN the DT merger NN might MD result VV in IN excess JJ concentration NN . SENT Responsibility NN for IN reviewing VVG the DT competitive JJ aspects NNS of IN important JJ non JJ Community NP mergers NNS in IN France NP lies VVZ with IN the DT Economic NP Affairs NPS Minister NP who WP may MD undertake VV an DT evaluation NN on IN the DT recommendation NN of IN the DT Competition NP Council NP . SENT In IN other JJ European JJ countries NNS , , various JJ supervisory JJ authorities NNS exercise VVP similar JJ roles NNS . SENT in IN Switzerland NP , , the DT Swiss NP Federal NP Banking NP Commission NP is VBZ responsible JJ for IN the DT examination NN and CC approval NN of IN M NP A DT proposals NNS each DT time NN there EX is VBZ a DT change NN in IN ownership NN and CC all DT proposals NNS are VBP subject JJ to TO review VV by IN the DT Competition NP Commission NP . SENT in IN the DT Netherlands NP , , M NP A NP applications NNS require VVP prior JJ approval NN of IN the DT Minister NP of IN Finance NP who WP must MD consult VV the DT views NNS of IN the DT central JJ bank NN before IN taking VVG a DT decision NN . SENT however RB , , the DT Minister NP may MD reject VV the DT application NN even RB if IN the DT central JJ bank NN favours VVZ it PP . SENT The DT opinions NNS are VBP based VVN on IN three CD criteria NNS . SENT the DT sound JJ financial JJ health NN of IN the DT applicant NN . SENT the DT likely JJ viability NN of IN the DT new JJ entity NN . SENT and CC a DT finding NN that IN the DT merger NN would MD not RB result VV in IN abuse NN of IN dominant JJ position NN . SENT in IN Spain NP , , all DT banking NN M NP As RB require VVP prior JJ approval NN of IN the DT Minister NP for IN the DT Economy NN who WP bases VVZ the DT decision NN on IN the DT report NN of IN the DT state NN banking NN council NN . SENT the DT banking NN and CC financial JJ services NNS commission NN must MD verify VV that IN the DT buyer NN will MD not RB threaten VV the DT stability NN of IN the DT acquired VVN bank NN . SENT in IN Italy NP , , the DT Banca NP d SYM Italia NP has VHZ delegated VVN responsibility NN in IN an DT anti JJ trust NN authority NN in IN the DT credit NN sphere NN , , so RB as RB to TO eliminate VV those DT factors NNS which WDT are VBP adverse JJ to TO competition NN and CC accentuate VV those DT which WDT are VBP conducive JJ to TO it PP . SENT a DT 1990 CD Act NN 27 CD addresses NNS the DT potential JJ negative JJ effects NNS of IN conglomerates NNS on IN competition NN . SENT Bank NN regulation NN poses VVZ another DT obstacle NN to TO M NP As IN worldwide RB . SENT Although IN some DT current JJ de NP mutualization NN of IN previously RB mutual JJ banks NNS and CC insurance NN companies NNS was VBD driven VVN by IN the DT need NN to TO expand VV access NN to TO capital NN and CC financial JJ markets NNS , , many JJ banks NNS are VBP unable JJ to TO tap VV the DT loan NN and CC bond NN markets NNS to TO finance VV acquisitions NNS partly RB because IN they PP cannot NN borrow VVP as RB freely RB as IN industrial JJ companies NNS . SENT Limits NNS on IN banks NNS capital NN ratios NNS mean VVP they PP cannot NN leverage NN their PP$ balance NN sheets NNS to TO buy VV competitors NNS . SENT Competition NN policy NN Banking NP and CC financial JJ M NP As RB are VBP horizontal JJ between IN competitors NNS and CC not RB vertical JJ involving VVG supplier NN and CC customer NN which WDT are VBP frequent JJ in IN industry NN . SENT While IN there EX might MD be VB occasional JJ conglomerate NN mergers NNS when WRB , , for IN instance NN , , a DT financial JJ institution NN specializing VVG in IN the DT development NN of IN products NNS integrates VVZ with IN another DT specializing VVG in IN distribution NN , , few JJ financial JJ M NP As IN result NN in IN the DT creation NN of IN conglomerates NNS , , which WDT occur VVP when WRB the DT companies NNS are VBP not RB competitors NNS and CC do VVP not RB have VH a DT buyer NN seller NN relationship NN . SENT The DT last JJ few JJ years NNS have VHP seen VVN a DT number NN of IN megamergers NNS between IN companies NNS headquartered VVN in IN different JJ parts NNS of IN the DT world NN , , resulting VVG in IN truly RB global JJ enterprises NNS . SENT M NP As RB , , just RB like IN any DT other JJ potential JJ or CC actual JJ anti JJ competition NN behaviour NN cooperative JJ agreements NNS , , abuse NN of IN dominant JJ positions NNS are VBP no DT respecters NNS of IN borders NNS . SENT It PP is VBZ therefore RB clear JJ that IN international JJ cooperation NN is VBZ necessary JJ to TO deal VV effectively RB with IN cross NN border NN competition NN problems NNS . SENT The DT agreement NN signed VVN in IN 1991 CD and CC put VVN into IN effect NN by IN 1998 CD between IN the DT European NP Union NP and CC the DT United NP States NPS is VBZ a DT good JJ example NN of IN such JJ cooperation NN . SENT The DT agreement NN particularly RB facilitates VVZ the DT exchange NN of IN information NN and CC a DT transatlantic JJ cooperative JJ regime NN between IN the DT competition NN authorities NNS and CC is VBZ applicable JJ to TO M NP As RB , , including VVG in IN banking NN . SENT An DT example NN in IN 2000 CD involved JJ telecommunications NNS and CC resulted VVD in IN the DT withdrawal NN of IN merger NN plans NNS between IN WorldCom NP and CC Sprint NP . SENT In IN 1999 CD , , a DT working VVG group NN was VBD set VVN up RP to TO extend VV the DT areas NNS of IN cooperation NN , , especially RB concerning VVG the DT transmission NN of IN confidential JJ information NN and CC timely JJ consideration NN of IN M NP As RB . SENT Because IN of IN laws NNS on IN commercial JJ confidentiality NN , , European JJ competition NN authorities NNS still RB need VVP the DT consent NN of IN the DT companies NNS involved VVN before IN they PP can MD communicate VV to TO their PP$ United NP States NPS counterparts NNS certain JJ types NNS of IN documents NNS that WDT might MD contain VV sensitive JJ information NN . SENT The DT aim NN is VBZ to TO eliminate VV the DT need NN for IN such JJ consent NN . SENT Similar JJ agreements NNS on IN international JJ cooperation NN exist VVP , , for IN example NN , , between IN the DT United NP States NPS and CC Canada NP and CC between IN Australia NP and CC New NP Zealand NP . SENT There EX are VBP growing VVG calls NNS in IN various JJ countries NNS including VVG from IN academics NNS , , economists NNS , , trade NN unionists NNS and CC NGOs NNS for IN strengthened JJ international JJ competition NN rules NNS to TO discourage VV excessive JJ sectoral JJ concentration NN and CC to TO provide VV a DT counterweight NN to TO enterprises NNS , , financial JJ or CC otherwise RB , , which WDT exploit VVP the DT absence NN or CC gaps NNS in IN international JJ regulations NNS . SENT EU NP Member NP States NPS have VHP called VVN for IN a DT multilateral JJ framework NN on IN basic JJ competition NN rules NNS and CC the DT linkages NNS between IN trade NN and CC competition NN policy NN , , including VVG on IN M NP A DT policy NN , , have VHP been VBN under IN review NN at IN WTO NP , , UNCTAD NP and CC OECD NP for IN many JJ years NNS . SENT One CD issue NN deserving JJ attention NN is VBZ ascertaining VVG the DT extent NN to TO which WDT current JJ national JJ competition NN legislation NN sufficiently RB safeguards NNS the DT soundness NN of IN the DT international JJ trading NN system NN in IN case NN of IN violation NN or CC M NP A NP created VVD dominant JJ positions NNS on IN international JJ markets NNS . SENT It PP is VBZ clearly RB in IN the DT international JJ community NN s PP interest NN that IN countries NNS , , especially RB the DT major JJ economies NNS , , have VHP effective JJ competition NN laws NNS that WDT take VVP this DT into IN account NN . SENT However RB , , uncertainty NN remains VVZ as RB to TO whether IN the DT ways NNS in IN which WDT they PP have VHP been VBN applied VVN always RB reflect VV all DT countries NNS common JJ interests NNS . SENT This DT uncertainty NN arises VVZ from IN the DT fact NN that IN national JJ competition NN laws NNS , , as RB currently RB applied VVN , , primarily RB reflect VVP consumer NN based VVN anti JJ competition NN effects NNS or CC , , sometimes RB , , producer NN impacts NNS which WDT fall VVP within IN each DT country NN s PP jurisdiction NN , , rather RB than IN practices NNS which WDT affect VVP other JJ countries NNS . SENT Mergers NNS may MD be VB approved VVN if IN the DT resulting VVG efficiency NN benefits NNS in IN the DT country NN undertaking VVG the DT review NN sufficiently RB offset VVD the DT likely JJ damage NN , , but CC the DT loss NN for IN consumers NNS and CC other JJ producers NNS outside IN national JJ borders NNS will MD not RB necessarily RB be VB evaluated VVN . SENT In IN practice NN , , it PP seems VVZ that IN in IN many JJ mergers NNS , , small JJ countries NNS feel VVP constrained VVN to TO accept VV the DT rules NNS of IN major JJ countries NNS or CC systems NNS , , especially RB those DT of IN the DT EU NP and CC the DT United NP States NPS . SENT 28 CD In IN practice NN , , M NP As RB are VBP often RB a DT product NN of IN market NN shocks NNS for IN example NN in IN the DT financial JJ services NNS sector NN , , privatization NN or CC sectoral JJ deregulation NN , , sharpening VVG competition NN and CC attacks NNS on IN established VVN market NN positions NNS . SENT Higher JJR profitability NN after IN M NP As RB can MD provide VV not RB only RB the DT sought VVN after IN synergies NNS , , but CC eventually RB , , in IN horizontal JJ combinations NNS of IN previously RB competing VVG interests NNS , , increased JJ market NN power NN . SENT According VVG to TO UNCTAD NP , , cross NN border NN M NP As RB can MD be VB used VVN to TO reduce VV or CC even RB eliminate VV competition NN , , thus RB posing VVG challenges NNS for IN maintaining VVG effective JJ competition NN in IN host NN economies NNS by IN increasing VVG market NN concentration NN at IN the DT time NN of IN entry NN . SENT Like IN all DT firms NNS , , affiliates NNS resulting VVG from IN cross NN border NN M NP As RB can MD engage VV in IN various JJ forms NNS of IN anti JJ competitive JJ behaviour NN once RB established VVN , , when WRB conditions NNS permit VVP . SENT As IN a DT result NN of IN large JJ scale NN mergers NNS among IN transnationals NNS in IN general NN , , these DT firms NNS could MD end VV up RP controlling VVG increasingly RB large JJ market NN shares NNS and CC global JJ distribution NN channels NNS , , thus RB making VVG it PP difficult JJ for IN smaller JJR scale NN enterprises NNS in IN developing VVG and CC transition NN economies NNS to TO compete VV on IN equal JJ terms NNS . SENT In IN financial JJ services NNS , , abuse NN of IN a DT dominant JJ position NN , , whether IN or CC not RB as IN a DT result NN of IN a DT cross NN border NN M NP A NP , , can MD also RB be VB subject JJ to TO prosecution NN in IN a DT country NN where WRB such JJ abuse NN has VHZ occurred VVN , , or CC within IN the DT context NN of IN international JJ cooperation NN when WRB the DT anti JJ competition NN effects NNS affect VVP other JJ countries NNS . SENT Considering VVG the DT inherent JJ risks NNS in IN the DT appearance NN or CC strengthening VVG of IN dominant JJ positions NNS , , especially RB in IN finance NN , , attentive JJ regulation NN of IN M NP As RB is VBZ integral JJ to TO public JJ competition NN policy NN . SENT The DT development NN of IN Internet NN based VVN financial JJ services NNS poses VVZ new JJ challenges NNS to TO national JJ and CC international JJ regulators NNS . SENT Competition NN authorities NNS must MD decide VV whether IN traditional JJ yardsticks NNS of IN monopoly NN power NN still RB apply VV or CC whether IN as IN some DT companies NNS argue VVP the DT competition NN issues NNS have VHP changed VVN . SENT Companies NNS argue VVP that IN the DT regulators NNS do VVP not RB understand VV that IN the DT low JJ barriers NNS to TO entry NN make VV it PP a DT very RB competitive JJ environment NN that IN cannot NN be VB examined VVN in IN terms NNS of IN classic JJ market NN shares NNS . SENT The DT fast JJ moving VVG environment NN of IN the DT new JJ economy NN means VVZ that IN regulators NNS conclusions NNS about IN the DT effect NN of IN a DT merger NN could MD be VB proved VVN wrong JJ within IN 18 CD months NNS . SENT 29 CD Examples NNS in IN Europe NP include VVP the DT Bank NP of IN England NP , , which WDT reviews VVZ banking NN M NP A NP applications NNS to TO ensure VV that IN they PP will MD not RB have VH negative JJ repercussions NNS on IN the DT operations NNS of IN the DT institutions NNS involved VVD , , their PP$ balance NN sheets NNS or CC the DT safety NN of IN depositors NNS funds NNS . SENT As RB in IN other JJ sectors NNS , , the DT Government NP might MD also RB intervene VV if IN a DT proposed VVN merger NN or CC acquisition NN could MD create VV competition NN problems NNS . SENT In IN Germany NP , , banking NN mergers NNS involving VVG more JJR than IN 1 CD billion CD Marks NNS in IN worldwide JJ net JJ income NN or CC 50 CD million CD Marks NNS on IN the DT domestic JJ market NN require VVP Federal NP Cartel NN Office NP approval NN . SENT The DT Federal NP Office NP for IN the DT Regulation NN of IN Credit NP Institutions NP reviews VVZ all PDT the DT prudential JJ ratios NNS of IN institutions NNS applying VVG for IN M NP As RB . SENT Within IN the DT European NP Union NP , , the DT authority NN to TO approve VV the DT most RBS important JJ mergers NNS , , including VVG those DT in IN finance NN , , is VBZ vested VVN in IN the DT Commission NP under IN Council NP Regulation NP EEC NP No NP . SENT 4064 CD 89 CD . SENT The DT Commission NP must MD be VB informed VVN if IN the DT combined JJ aggregate NN worldwide RB of IN the DT companies NNS involved VVN is VBZ more JJR than IN ECU NP 2 CD , , 500 CD million CD 5 CD billion CD euros NNS and CC if IN the DT aggregate JJ turnover NN of IN each DT of IN the DT companies NNS in IN the DT EU NP is VBZ more RBR than IN ECU NP 25 CD million CD 250 JJ million CD euros NNS , , unless IN each DT of IN them PP achieves VVZ more JJR than IN two CD thirds NNS of IN its PP$ aggregate JJ community NN wide JJ turnover NN within IN one CD and CC the DT same JJ Member NP State NP . SENT The DT Commission NP has VHZ noted VVN in IN some DT decisions NNS that IN these DT thresholds NNS have VHP not RB been VBN reached VVN e NN . SENT g NN . SENT its PP$ 1997 CD authorization NN of IN the DT merger NN between IN Cr NP dit NP Suisse NP Group NP and CC Winterthur NP even RB if IN Switzerland NP is VBZ not RB an DT EU NP Member NP . SENT Another DT example NN is VBZ provided VVN by IN the DT Allianz NP AGF NP case NN where WRB , , in IN a DT 1998 CD decision NN , , the DT Commission NP judged VVN that IN credit NN insurance NN constitutes VVZ a DT distinct JJ market NN and CC that IN the DT two CD companies NNS proposal NN posed VVD the DT risk NN of IN creating VVG a DT dominant JJ position NN in IN it PP , , resulting VVG in IN AGF NP s PP agreement NN to TO divest VV itself PP of IN a DT subsidiary NN in IN the DT same JJ market NN as IN a DT condition NN for IN approval NN . SENT In IN the DT United NP States NPS , , since IN the DT adoption NN of IN the DT Riegle NP Neal NP Interstate NP Banking NP and CC Branching VVG Efficiency NN Act NN of IN 1994 CD , , the DT proportion NN of IN market NN share NN in IN terms NNS of IN deposits NNS held VVN are VBP taken VVN into IN consideration NN in IN cases NNS involving VVG bank NN holding VVG companies NNS in IN one CD state NN acquiring VVG banks NNS located VVN in IN another DT state NN . SENT The DT law NN prohibits VVZ M NP As IN resulting VVG in IN deposit NN concentrations NNS of IN more JJR than IN 10 CD per IN cent NN at IN the DT national JJ level NN or CC 30 CD per IN cent NN in IN the DT same JJ state NN . SENT In IN addition NN , , federal JJ and CC state NN anti NN trust NN laws NNS are VBP also RB applicable JJ in IN M NP As RB . SENT Following VVG review NN of IN the DT financial JJ services NNS as IN a DT preliminary JJ step NN to TO reforms NNS , , Canada NP has VHZ adopted VVN a DT comprehensive JJ sectoral JJ policy NN , , including VVG the DT sensitive JJ and CC related JJ issues NNS of IN ownership NN and CC M NP As RB . SENT Under IN this DT policy NN , , the DT Government NN accepts VVZ that IN M NP As RB can MD be VB a DT legitimate JJ and CC viable JJ business NN strategy NN for IN growth NN and CC success NN , , but CC each DT merger NN proposal NN must MD be VB assessed VVN on IN its PP$ own JJ merits NNS and CC those DT with IN over IN Canadian JJ 5 CD billion CD in IN equity NN include VVP a DT formal JJ mechanism NN for IN public JJ input NN . SENT In IN addition NN to TO reviews NNS by IN the DT Competition NP Bureau NP and CC the DT Office NN of IN the DT Superintendent NN of IN Financial NP Institutions NP , , merger NN proponents NNS have VHP to TO prepare VV a DT Public NP Interest NP Impact NP Assessment NP PIIA NNS for IN examination NN by IN the DT House NP of IN Commons NP Standing NP Committee NP on IN Finance NP . SENT In IN addition NN to TO the DT business NN case NN and CC objectives NNS of IN the DT merger NN , , the DT PIIA NNS must MD identify VV . SENT possible JJ costs NNS and CC benefits NNS to TO customers NNS and CC small JJ medium NN businesses NNS . SENT timing NN and CC socio NN economic JJ impact NN of IN branch NN closures NNS or CC alternative JJ service NN delivery NN measures NNS at IN regional JJ level NN . SENT international JJ competitiveness NN of IN the DT sector NN . SENT direct JJ and CC indirect JJ impact NN on IN employment NN and CC quality NN of IN jobs NNS in IN the DT sector NN both CC transitional JJ and CC permanent JJ effects NNS . SENT ability NN to TO develop VV and CC adopt VV new JJ technologies NNS . SENT remedial JJ or CC mitigating JJ steps NNS on IN public JJ interest NN concerns NNS , , such JJ as IN divestures NNS , , service NN guarantees NNS and CC other JJ commitments NNS . SENT and CC the DT impact NN of IN a DT transaction NN on IN the DT industry NN structure NN . SENT The DT PIIA NNS would MD also RB cover VV additional JJ issues NNS that IN the DT Minister NP of IN Finance NP or CC the DT parties NNS deem VVP relevant JJ in IN particular JJ transactions NNS . SENT Public JJ interest NN remedies NNS to TO address VV concerns NNS raised VVN during IN the DT review NN process NN would MD be VB negotiated VVN with IN merger NN applicants NNS , , following NN which WDT the DT Minister NP of IN Finance NP would MD approve VV the DT transaction NN with IN the DT terms NNS and CC conditions NNS reflecting VVG those DT remedies NNS . SENT In IN Japan NP , , the DT Fair NP Trade NP Commission NP is VBZ mandated VVN with IN guaranteeing VVG anti JJ monopoly NN laws NNS . SENT Its PP$ competence NN covers VVZ the DT whole JJ economy NN , , including VVG banking NN and CC financial JJ services NNS . SENT Japan NP has VHZ traditionally RB been VBN seen VVN as IN a DT hostile JJ environment NN for IN M NP As RB , , such JJ activity NN being VBG considered VVN almost RB immoral JJ , , with IN the DT result NN that IN previous JJ M NP As IN in IN Japan NP were VBD invariably RB friendly JJ , , often RB resulting VVG from IN third JJ party NN initiatives NNS such JJ as IN those DT of IN government NN agencies NNS interested VVN in IN bringing VVG about IN sectoral JJ adjustments NNS . SENT Following VVG its PP$ Big NP Bang NP drive NN to TO deregulate VV the DT financial JJ markets NNS , , Japan NP s PP enterprises NNS , , including VVG banks NNS and CC other JJ financial JJ services NNS operators NNS , , have VHP developed VVN a DT taste NN for IN M NP As RB . SENT Restrictions NNS on IN M NP As RB , , takeover NN bids NNS and CC business NN transfers NNS are VBP nevertheless RB included VVN in IN the DT country NN s PP Commercial NP Code NP , , the DT Anti JJ Monopoly NN Act NP and CC the DT Securities NPS and CC Exchange NP Law NP . SENT The DT Stock NP Exchange NP and CC the DT Securities NPS Dealers NPS Association NP have VHP their PP$ own JJ self NN regulatory JJ controls NNS on IN takeover NN bids NNS . SENT Resistance NN at IN the DT national JJ level NN There EX have VHP been VBN long RB standing VVG predictions NNS so RB far RB unrealized JJ that IN the DT present JJ wave NN of IN in IN country NN consolidation NN , , mainly RB in IN Europe NP , , would MD be VB followed VVN by IN regional JJ consolidation NN in IN which WDT big JJ banks NNS would MD buy VV institutions NNS in IN other JJ countries NNS . SENT In IN 1999 CD , , only RB 50 CD billion CD of IN 225 CD billion CD in IN European JJ financial JJ institution NN deals NNS represented VVD intra NN European JJ mergers NNS . SENT 30 CD So RB far RB , , cross VVP border NN consolidation NN has VHZ taken VVN place NN only RB along IN Europe NP s PP periphery NN , , in IN regions NNS with IN close JJ historical JJ and CC cultural JJ links NNS Spanish JJ banks NNS buying VVG banks NNS in IN Portugal NP , , Belgian JJ and CC Dutch JJ groups NNS linking VVG and CC pan VV Nordic JJ consolidation NN . SENT At IN Europe NP s PP core NN , , no DT German JJ bank NN has VHZ bought VVN its PP$ way NN into IN the DT Italian JJ market NN and CC no DT French JJ and CC Spanish JJ banks NNS have VHP merged VVN . SENT Cross NP border NN M NP As RB are VBP sometimes RB seen VVN as IN eroding VVG the DT national JJ enterprise NN sector NN and CC , , more RBR broadly RB , , economic JJ sovereignty NN . SENT Concerns NNS of IN this DT kind NN are VBP not RB new JJ and CC , , in IN the DT past NN , , were VBD particularly RB associated VVN with IN the DT natural JJ resource NN sector NN . SENT Although IN banks NNS are VBP cross NN border NN , , moving VVG outside IN their PP$ home NN base NN involves VVZ sensitive JJ cultural JJ issues NNS and CC such JJ moves NNS rarely RB produce VVP comparable JJ cost NN savings NNS as RB in IN market NN consolidation NN . SENT Indeed RB the DT promise NN of IN minimizing VVG job NN reductions NNS and CC maintaining VVG significant JJ local JJ autonomy NN are VBP often RB the DT price NN foreign JJ bidders NNS have VHP to TO pay VV to TO succeed VV in IN cross NN border NN acquisitions NNS . SENT However RB , , there EX may MD be VB economic JJ gains NNS from IN cross NN border NN M NP As IN if IN they PP help VVP to TO strengthen VV the DT capabilities NNS and CC competitiveness NN of IN acquired VVN firms NNS , , or CC simply RB save VV them PP . SENT the DT risk NN of IN denationalization NN may MD therefore RB need VV to TO be VB balanced VVN against IN possible JJ gains NNS in IN economic JJ restructuring NN and CC competitiveness NN . SENT Ultimately RB , , banking NN analysts NNS suggest VVP that IN the DT lack NN of IN synergies NNS across IN borders NNS means VVZ that RB pan VV European JJ institutions NNS are VBP likely JJ to TO be VB created VVN through IN big JJ mergers NNS of IN equals VVZ . SENT Banks NNS will MD merge VV when WRB they PP are VBP so RB big JJ that IN no DT one NN else RB can MD intervene VV to TO break VV up RP the DT deal NN . SENT 31 CD With IN increasingly RB nomadic JJ capital NN , , countries NNS are VBP torn VVN between IN the DT necessity NN of IN mergers NNS or CC partnerships NNS between IN financial JJ institutions NNS beyond IN national JJ borders NNS and CC the DT maintenance NN of IN the DT independence NN of IN domestic JJ financial JJ organizations NNS . SENT In IN 1999 CD , , Portugal NP opposed VVD a DT merger NN proposal NN between IN its PP$ largest JJS financial JJ group NN , , Champalimaud NP and CC Spain NP s PP BSCH NP , , the DT parameters NNS of IN which WDT had VHD to TO be VB renegotiated VVN after IN European JJ Commission NP intervention NN . SENT Scandinavian JJ countries NNS are VBP similarly RB strongly RB reluctant JJ to TO allow VV foreign JJ institutions NNS to TO take VV substantial JJ interest NN in IN national JJ banking NN institutions NNS , , even RB though IN the DT region NN has VHZ seen VVN the DT highest JJS number NN of IN consolidations NNS . SENT The DT Norwegian JJ regulatory JJ authorities NNS have VHP not RB supported VVN several JJ M NP A DT operations NNS , , including VVG that IN proposed VVN by IN the DT Finnish JJ Swedish JJ group NN , , Merita NP Nordbanken NP for IN Christiania NP Bank NP . SENT Legal JJ status NN of IN financial JJ institutions NNS Mutual JJ and CC cooperative JJ banks NNS continue VVP to TO play VV an DT important JJ role NN , , especially RB in IN continental JJ Europe NP . SENT A DT product NN of IN national JJ social JJ and CC economic JJ history NN , , their PP$ legal JJ status NN , , which WDT prevents VVZ stock NN exchange NN listing NN , , constitutes VVZ an DT obstacle NN to TO M NP As IN . SENT These DT institutions NNS , , which WDT generally RB include VVP savings NNS funds NNS or CC agricultural JJ banks NNS , , have VHP resisted VVN adopting VVG purely RB capitalist JJ structures NNS and CC thus RB modifying VVG the DT balance NN of IN internal JJ power NN for IN fear NN of IN losing VVG their PP$ historical JJ and CC local JJ rationale NN . SENT While IN consolidation NN has VHZ happened VVN among IN this DT category NN of IN institutions NNS at IN the DT national JJ level NN , , cross NN border NN tie NN ups NNS are VBP much RB more RBR difficult JJ because IN the DT purchase NN of IN a DT foreign JJ institution NN of IN comparable JJ size NN could MD only RB be VB envisaged VVN through IN market NN financing NN or CC the DT exchange NN of IN shares NNS . SENT Nevertheless RB , , the DT status NN of IN this DT type NN of IN institution NN does VVZ not RB prohibit VV them PP from IN minority NN holdings NNS sometimes RB quite RB considerable JJ in IN foreign JJ financial JJ institutions NNS . SENT Neither DT does VVZ it PP prohibit VV alliances NNS and CC other JJ partnership NN arrangements NNS , , including VVG in IN bancassurance NN . SENT The DT merger NN announced VVD in IN October NP 1999 CD between IN mutual JJ banks NNS in IN the DT Netherlands NPS and CC Germany NP , , joined VVD by IN a DT major JJ credit NN cooperative NN in IN Italy NP , , will MD serve VV as IN a DT trial NN run VVN in IN this DT type NN of IN consolidation NN . SENT Inadequate JJ assessment NN of IN cultural JJ aspects NNS of IN M NP As IN Interest NP is VBZ concentrated VVN almost RB exclusively RB on IN the DT economic JJ benefits NNS of IN M NP As IN , , with IN scant JJ attention NN being VBG paid VVN to TO soft JJ cultural JJ and CC organizational JJ considerations NNS . SENT Though IN merger NN proponents NNS and CC some DT research NN in IN the DT United NP States NPS and CC the DT United NP Kingdom NP argue VVP for IN increased VVN efficiency NN gains NNS and CC employment NN generation NN throughout IN the DT economy NN resulting VVG from IN domestic JJ mergers NNS thereby RB compensating VVG in IN some DT measure NN for IN immediate JJ job NN losses NNS , , as RB well RB as IN increased JJ pricing NN power NN which WDT the DT institution NN can MD translate VV into IN improved JJ margins NNS , , augmented JJ domestic JJ market NN power NN does VVZ not RB automatically RB transform VV the DT merged JJ organization NN into IN a DT global JJ force NN . SENT Influence NN at IN the DT global JJ level NN requires VVZ a DT corresponding JJ global JJ presence NN . SENT Although IN the DT sector NN easily RB lends VVZ itself PP to TO globalization NN , , cultural JJ differences NNS have VHP often RB been VBN the DT root NN cause NN in IN the DT disappointing JJ experience NN of IN extracting VVG efficiencies NNS in IN cross NN border NN M NP As RB . SENT Following VVG its PP$ acquisition NN of IN the DT United NP Kingdom NP s PP Morgan NP Grenfell NP Group NP , , Germany NP s PP Deutsche NP Bank NP at IN first RB allowed VVN the DT company NN to TO maintain VV its PP$ autonomy NN , , but CC had VHD to TO revise VV the DT strategy NN as IN the DT arrangement NN would MD not RB permit VV efficiency NN maximization NN . SENT Deutsche NP s PP attempts VVZ to TO imbue VV its PP$ acquisition NN with IN its PP$ own JJ organizational JJ culture NN and CC ways NNS of IN work NN almost RB totally RB nullified VVN the DT value NN of IN the DT acquisition NN . SENT Examples NNS of IN similar JJ problems NNS in IN cross NN cultural JJ integration NN are VBP legion NN and CC few JJ financial JJ services NNS organizations NNS have VHP found VVN the DT model NN approach NN to TO overcoming VVG them PP . SENT The DT wider JJR the DT cultural JJ divide NN , , including VVG distinctly RB different JJ languages NNS , , the DT greater JJR are VBP the DT sometimes RB insurmountable JJ barriers NNS to TO effective JJ integration NN into IN transnational JJ M NP As IN . SENT According VVG to TO the DT KPMG NP study NN cited VVD in IN Chapter NP 1 CD , , M NP A NP deals NNS were VBD 26 CD per IN cent NN more RBR likely JJ than IN average NN to TO be VB successful JJ if IN they PP paid VVD satisfactory JJ attention NN to TO cultural JJ issues NNS and CC those DT acquirers NNS who WP left VVD cultural JJ issues NNS until IN the DT post NN deal NN period NN severely RB hindered VVD their PP$ chance NN of IN deal NN success NN , , compared VVN with IN those DT who WP dealt VVD with IN them PP early RB in IN the DT process NN . SENT Early JJ emphasis NN on IN cultural JJ assessments NNS and CC communications NNS plans NNS are VBP particularly RB important JJ . SENT The DT results NNS also RB underline VV the DT challenge NN acquirers NNS face VVP in IN undertaking VVG cross NN border NN deals NNS where WRB there EX is VBZ a DT significant JJ cultural JJ and CC linguistic JJ disparity NN between IN participants NNS . SENT The DT authors NNS note VVP that DT full JJ integration NN requires VVZ the DT best JJS aspects NNS of IN both DT legacy NN organizations NNS to TO be VB incorporated VVN into IN a DT single JJ new JJ company NN culture NN focused VVN on IN achieving VVG future JJ business NN growth NN . SENT Where WRB the DT companies NNS are VBP to TO be VB run VVN as IN two CD separate JJ entities NNS , , close JJ links NNS to TO ensure VV mutual JJ cooperation NN between IN two CD separate JJ cultures NNS will MD be VB essential JJ . SENT The DT survey NN results NNS also RB suggest VVP that IN a DT company NN increases VVZ its PP$ chances NNS of IN success NN if IN it PP uses VVZ reward NN systems NNS to TO stimulate VV cultural JJ integration NN or CC cooperation NN , , as RB opposed VVN to TO more JJR informal JJ methods NNS . SENT Cultural JJ aspects NNS therefore RB constitute VVP a DT significant JJ obstacle NN to TO cross VV border NN combinations NNS even RB though IN the DT differences NNS continue VVP to TO ease VV with IN time NN , , education NN and CC training NN . SENT Any DT merger NN or CC acquisition NN is VBZ a DT complex JJ process NN taking VVG up RP more JJR time NN than IN usually RB expected VVN . SENT it PP requires VVZ integrating VVG very RB different JJ organizations NNS , , blending VVG often RB very RB diverse JJ cultures NNS and CC dealing VVG with IN complex JJ questions NNS of IN dissimilar JJ work NN organization NN . SENT This DT requires VVZ high JJ levels NNS of IN managerial JJ capacity NN in IN change NN management NN , , the DT constitution NN of IN effective JJ teams NNS and CC network NN integration NN all DT demands NNS for IN which WDT many JJ managers NNS are VBP ill RB equipped JJ but CC which WDT can MD lead VV to TO an DT accumulation NN of IN critical JJ errors NNS and CC misunderstandings NNS and CC ruin VV what WP , , at IN least JJS on IN paper NN , , might MD look VV like IN a DT highly RB promising JJ deal NN . SENT Neglecting VVG the DT human JJ factor NN is VBZ a DT frequent JJ cause NN of IN failure NN Cultural JJ and CC symbolic JJ elements NNS in IN M NP As RB are VBP typically RB framed VVN in IN terms NNS of IN the DT distinction NN between IN the DT merging VVG firms NNS , , thus RB leading VVG to TO an DT us PP versus IN them PP dualism NN . SENT The DT creation NN of IN formal JJ , , internal JJ communications NNS mechanisms NNS as RB early RB as RB possible JJ in IN the DT process NN is VBZ necessary JJ to TO limit VV the DT anxiety NN that WDT will MD otherwise RB be VB fuelled VVN by IN rumour NN , , the DT grapevine NN , , or CC even RB outside IN news NN reports NNS . SENT Employees NNS complain VVP that IN their PP$ first JJ knowledge NN that IN their PP$ employer NN is VBZ involved VVN in IN a DT merger NN or CC acquisition NN is VBZ often RB from IN the DT morning NN news NN before IN setting VVG off RP for IN work NN . SENT According VVG to TO a DT Hewitt NP Associates NPS executive NN , , the DT fact NN that IN the DT human JJ factor NN is VBZ taken VVN into IN account NN in IN only RB 5 CD per IN cent NN of IN M NP As RB explains VVZ why RB more JJR than IN half NN of IN them PP in IN all DT sectors NNS fail VVP . SENT Teams NNS are VBP usually RB put VVN together RB to TO oversee VV merger NN and CC acquisition NN operations NNS . SENT These DT teams NNS almost RB always RB comprise VV specialists NNS in IN legal JJ and CC financial JJ issues NNS as RB well RB as IN experts NNS in IN strategy NN but CC rarely RB do VVP they PP include VVP human JJ resource NN directors NNS . SENT One CD possible JJ explanation NN is VBZ the DT fact NN that IN speed NN is VBZ generally RB considered VVN of IN capital NN importance NN for IN success NN . SENT While IN the DT integration NN phase NN of IN merging VVG enterprises NNS may MD cover VV between IN three CD to TO five CD years NNS , , the DT first JJ 100 CD days NNS after IN the DT announcement NN of IN the DT transaction NN are VBP the DT most RBS crucial JJ for IN success NN or CC failure NN . SENT It PP has VHZ become VVN common JJ practice NN to TO prepare VV and CC communicate VV to TO staff NN and CC shareholders NNS a DT programme NN of IN integration NN activities NNS to TO cover VV this DT period NN , , when WRB the DT feelings NNS of IN fear NN , , apathy NN , , demotivation NN and CC the DT classical JJ victor NN and CC vanquished VVN syndromes NNS are VBP at IN their PP$ highest JJS . SENT Since IN a DT majority NN of IN mergers NNS end VVP up RP with IN the DT elimination NN of IN overlapping JJ functions NNS and CC positions NNS , , the DT first JJ 100 CD days NNS are VBP likely JJ to TO be VB those DT when WRB staff NN are NN most JJS uncertain JJ about IN jobs NNS , , career NN prospects NNS and CC the DT disappearance NN of IN their PP$ own JJ corporate JJ culture NN . SENT To TO reduce VV the DT possibilities NNS of IN failure NN in IN M NP As RB , , some DT management NN experts NNS have VHP recommended VVN that DT human JJ capital NN be VB placed VVN at IN the DT centre NN of IN the DT process NN , , or CC at IN least JJS be VB given VVN equal JJ attention NN to TO that DT assigned VVN to TO economic JJ and CC financial JJ considerations NNS . SENT According VVG to TO this DT school NN of IN thought NN , , such PDT a DT redirection NN would MD enable VV acquirers NNS to TO select VV the DT most RBS compatible JJ acquisition NN targets NNS from IN a DT human JJ resource NN perspective NN and CC make VV integration NN that IN much RB easier JJR . SENT Frank NP communication NN on IN a DT daily JJ basis NN between IN management NN and CC staff NN helps VVZ to TO dispel VV some DT of IN the DT uncertainties NNS of IN M NP As IN and CC avoid VV organizational JJ drift NN . SENT Employees NNS should MD be VB informed VVN in IN good JJ time NN about IN the DT manner NN in IN which WDT redundancies NNS , , if IN there EX are VBP to TO be VB any RB , , will MD be VB decided VVN and CC about IN the DT role NN of IN their PP$ trade NN unions NNS or CC representatives NNS in IN the DT process NN . SENT It PP is VBZ also RB important JJ for IN staff NN from IN the DT acquired VVN organization NN to TO be VB assured VVN that IN the DT rights NNS and CC entitlements NNS they PP had VHD with IN their PP$ previous JJ employer NN are VBP to TO be VB respected VVN . SENT otherwise RB there EX is VBZ a DT high JJ probability NN of IN conflict NN . SENT Merger NN uncertainties NNS are VBP also RB frequently RB blamed VVN for IN the DT loss NN of IN talent NN from IN target NN companies NNS , , which WDT can MD destroy VV the DT very JJ basis NN for IN the DT merger NN . SENT The DT failed VVN merger NN plans NNS between IN the DT Deutsche NP Bank NP and CC Dresdner NP Bank NP in IN April NP 2000 CD demonstrate VV how WRB staff NN resistance NN can MD undermine VV corporate JJ strategies NNS and CC management NN wishes NNS . SENT Integration NN of IN teams NNS from IN the DT respective JJ investment NN banks NNS of IN the DT two CD parent NN banks NNS posed VVD a DT risk NN to TO the DT balance NN already RB achieved VVN between IN staff NN in IN Deutsche NP Morgan NP Grenfell NP and CC the DT previously RB acquired VVN Bankers NPS Trust NP . SENT 3 LS . SENT Employment NN effects NNS of IN M NP As IN Regional NP overviews NNS Africa NP Financial NP market NN liberalization NN in IN Africa NP has VHZ often RB outpaced VVD the DT reform NN of IN weak JJ financial JJ institutions NNS . SENT Years NNS of IN liberalization NN , , restructuring NN and CC other JJ reforms NNS have VHP strengthened VVN the DT sector NN . SENT However RB , , many JJ observers NNS believe VVP making VVG the DT sector NN competitive JJ will MD require VV further JJR privatization NN and CC consolidation NN . SENT Bank NN privatization NN has VHZ been VBN slow JJ although IN some DT large JJ divestures NNS are VBP planned VVN once IN the DT banks NNS have VHP been VBN restructured VVN , , troubled JJ loan NN portfolios NNS provisioned VVN for IN and CC staffing NN and CC branch NN networks NNS re IN evaluated VVN . SENT Most JJS M NP A DT activity NN in IN the DT 1990 CD s PP was VBD implemented VVN in IN a DT reform NN context NN . SENT The DT Central NP Bank NP of IN Nigeria NP CBN NP and CC the DT Nigeria NP Deposit NP Insurance NP Corporation NP NDIC NP report NN that WDT , , of IN the DT 115 CD banks NNS in IN operation NN in IN 1997 CD , , 47 CD were VBD in IN varying VVG states NNS of IN distress NN , , with IN an DT average JJ ratio NN of IN non JJ performing VVG assets NNS of IN around IN 82 CD per IN cent NN . SENT The DT restructuring NN of IN distressed JJ banks NNS starts VVP with IN their PP$ being VBG put VVN under IN joint JJ control NN through IN acquisitions NNS in IN trust NN by IN the DT NDIC NP and CC the DT CBN NN for IN eventual JJ sale NN to TO private JJ operators NNS . SENT Six CD mergers NNS between IN 1996 CD and CC 1998 CD resulted VVN in IN 88 CD net JJ job NN losses NNS out RB of IN a DT total JJ workforce NN of IN 1 CD , , 860 CD . SENT Without IN the DT mergers NNS , , many JJ of IN the DT banks NNS would MD have VH been VBN closed VVN by IN regulators NNS with IN the DT loss NN of IN all PDT the DT jobs NNS involved VVD . SENT Bankers NNS warn VVP that IN , , although IN the DT worst JJS of IN the DT crisis NN may MD be VB over RP , , only RB 30 CD of IN the DT 82 CD remaining JJ banks NNS are VBP serious JJ operators NNS . SENT Recovery NN does VVZ not RB mean VV an DT end NN to TO restructuring NN as IN the DT industry NN is VBZ expected VVN to TO shrink VV in IN both CC the DT number NN of IN institutions NNS and CC active JJ branches NNS , , although IN the DT latter NN already RB declined VVD from IN nearly RB 2 CD , , 500 CD to TO 2 CD , , 200 CD between IN 1997 CD and CC 1999 CD . SENT Employment NN in IN the DT sector NN dropped VVD from IN 78 CD , , 514 CD workers NNS in IN 1990 CD 91 CD to TO 54 CD , , 292 CD in IN 1999 CD 2000 CD , , though IN this DT can MD be VB attributed VVN to TO bankruptcies NNS and CC closures NNS and CC not RB wholly RB to TO M NP As IN . SENT Given VVN the DT preponderance NN of IN its PP$ economy NN in IN Africa NP and CC its PP$ financial JJ operators NNS relatively RB substantial JJ resources NNS , , South JJ African JJ interests NNS have VHP been VBN active JJ in IN acquiring VVG banking NN and CC other JJ financial JJ sector NN enterprises NNS from IN governments NNS . SENT The DT four CD big JJ South JJ African JJ banks NNS Absa NP , , Standard NP Bank NP , , Nedcor NP and CC First NP National NP Bank NP are VBP not RB huge JJ by IN global JJ standards NNS but CC tower NN above IN rivals NNS in IN other JJ African JJ countries NNS . SENT In IN efforts NNS to TO reduce VV costs NNS and CC improve VV profitability NN , , most RBS major JJ South JJ African JJ banks NNS are VBP examining VVG possibilities NNS of IN merging VVG with IN assurers NNS or CC other JJ banks NNS , , while IN many JJ others NNS are VBP expanding VVG into IN other JJ African JJ countries NNS . SENT Standard NP Bank NP Stanbic NP expanded VVD into IN 14 CD African JJ countries NNS in IN the DT 1990 CD s PP , , believing VVG this DT would MD allow VV it PP to TO be VB the DT financial JJ services NNS provider NN for IN industries NNS wishing VVG to TO tap VV African JJ markets NNS . SENT An DT attempted JJ hostile JJ takeover NN of IN Stanbic NP by IN Nedcor NP was VBD blocked VVN by IN the DT Minister NP of IN Finance NP in IN 2000 CD , , partly RB because IN of IN competition NN concerns NNS , , fears NNS of IN increased JJ systemic JJ risks NNS and CC the DT possible JJ loss NN of IN up RB to TO 10 CD , , 000 CD jobs NNS in IN a DT country NN with IN extremely RB high JJ unemployment NN . SENT In IN arguing VVG its PP$ case NN to TO the DT regulatory JJ authorities NNS , , Nedcor NP advanced VVD the DT need NN for IN South NP Africa NP to TO have VH a DT national JJ champion NN to TO compete VV on IN a DT global JJ scale NN . SENT It PP claimed VVD the DT merger NN would MD result VV in IN enhanced JJ revenues NNS , , risk NN mitigation NN and CC cost NN reduction NN . SENT These DT arguments NNS were VBD disputed VVN by IN Stanbic NP which WDT highlighted VVD the DT failure NN of IN similar JJ mergers NNS elsewhere RB and CC noted VVD that IN 70 CD 80 CD per IN cent NN of IN mergers NNS in IN financial JJ services NNS did VVD not RB deliver VV the DT efficiency NN touted VVD . SENT Among IN the DT reasons NNS it PP stressed VVD for IN merger NN failures NNS were VBD the DT loss NN of IN talented JJ staff NN , , low JJ employee NN morale NN , , unrealistic JJ estimates NNS of IN synergy NN benefits NNS , , underestimation NN of IN revenue NN losses NNS and CC unexpected JJ difficulties NNS in IN integrating VVG back JJ office NN functions NNS and CC systems NNS . SENT Banking NN analysts NNS believe VVP there EX is VBZ room NN for IN still RB more JJR consolidation NN in IN South NP Africa NP , , arguing VVG that IN the DT sector NN is VBZ overcrowded VVN with IN too RB many JJ small JJ institutions NNS , , several JJ of IN which WDT lose VVP money NN . SENT Certain JJ non JJ banking NN entities NNS , , such JJ as IN retailers NNS and CC car NN manufacturers NNS , , are VBP now RB competing VVG to TO offer VV financial JJ services NNS , , which WDT is VBZ expected VVN to TO squeeze VV margins NNS even RB further RBR . SENT In IN Uganda NP , , the DT Government NP is VBZ looking VVG for IN international JJ investors NNS to TO take VV over IN state NN owned VVN banks NNS . SENT In IN 1997 CD , , it PP sold VVD the DT country NN s PP premier JJ financial JJ institution NN , , Uganda NP Commercial NP Bank NP , , to TO a DT Malaysian JJ property NN developer NN , , but CC the DT sale NN was VBD subsequently RB voided VVN after IN irregularities NNS in IN financing VVG the DT operation NN came VVD to TO light VV . SENT Mass NN retrenchments NNS and CC branch NN closures NNS , , especially RB in IN rural JJ areas NNS , , were VBD envisaged VVN in IN the DT deal NN . SENT In IN Tanzania NP , , the DT sale NN of IN NBC NP 1997 CD Ltd NP . SENT following VVG privatization NN to TO Absa NP of IN South NP Africa NP proved VVD controversial JJ and CC was VBD the DT subject NN of IN a DT parliamentary JJ inquiry NN . SENT The DT privatization NN sale NN , , in IN conjunction NN with IN the DT countrywide JJ computerization NN programme NN of IN NBC NP s VVZ 35 CD branch NN network NN , , 32 CD is VBZ expected VVN to TO result VV in IN the DT redundancy NN of IN two CD thirds NNS of IN NBC NP staff NN 730 CD of IN 1 CD , , 100 CD employees NNS . SENT Staff NN were VBD offered VVN individual JJ voluntary JJ redundancy NN packages NNS comprising VVG all DT statutory JJ retirement NN benefits NNS , , termination NN of IN service NN awards NNS and CC lump NN sum NN payments NNS based VVN on IN years NNS of IN service NN and CC salary NN scale NN . SENT The DT redundancy NN offer NN circumvented VVD management NN TUICO NP negotiations NNS . SENT the DT trade NN union NN viewed VVD the DT bank NN s PP unilateral JJ offer NN as IN intended VVN to TO divide VV the DT workers NNS . SENT In IN the DT face NN of IN overseas JJ competition NN , , economic JJ reforms NNS and CC growing VVG links NNS with IN Europe NP , , North NP African NP banks NNS are VBP moving VVG from IN sheltered JJ environments NNS and CC diversifying VVG their PP$ lending NN instruments NNS as IN privatization NN continues VVZ . SENT In IN 1997 CD , , Morocco NP s PP Wafabank NP acquired VVN Uniban NP , , and CC Banque NP Nationale NP pour VVP le DT D NP veloppement NN Economique NP took VVD control NN of IN Banque NP Marocaine NP pour VVP l NN Afrique NN et CC l NN Orient NN . SENT A DT product NN of IN the DT recent JJ BNP NP Paribas NP merger NN , , Soci NN t NN Marocaine NP de NP d SYM p NN t NN et NP de NP cr NN dit NN is VBZ expected VVN to TO ally VV with IN Banque NP Marocaine NP pour VVP le DT Commerce NP et NP l NN Industrie NP , , a DT BNP NP subsidiary NN . SENT In IN the DT absence NN of IN suitable JJ local JJ merger NN partners NNS , , Moroccan JJ firms NNS are VBP looking VVG to TO attract VV major JJ foreign JJ banks NNS as IN merger NN partners NNS . SENT The DT Banque NP Commerciale NP du NP Maroc NP , , in IN addition NN to TO the DT local JJ Ona NP Group NP , , through IN Financi NP re IN Diwan NP 19 CD . SENT 65 CD per IN cent NN counts NNS BSCH NP 20 CD . SENT 27 CD per IN cent NN , , Corporaci NP n NN Financiera NP Caja NP de NP Madrid NP 4 CD . SENT 98 CD per IN cent NN and CC Credito NP Italiano NP 3 CD per IN cent NN among IN its PP$ shareholders NNS . SENT In IN insurance NN , , Axa NP Al NP Amane NP and CC Compagnie NP africaine NP d SYM assurances NNS are VBP to TO merge VV as IN Axa NP Assurances NPS Maroc NP , , one CD of IN two CD companies NNS expected VVN to TO lead VV the DT sector NN with IN over IN 20 CD per IN cent NN of IN the DT market NN . SENT The DT second NN is VBZ the DT Benjelloun NP Group NP , , currently RB in IN the DT process NN of IN merging VVG , , which WDT will MD hold VV a DT 23 CD . SENT 9 CD per IN cent NN market NN share NN . SENT 33 CD In IN Tunisia NP , , state NN owned VVD companies NNS dominate VV with IN their PP$ 60 CD per IN cent NN share NN of IN financial JJ services NNS . SENT Tunisian JJ bankers NNS believe VVP they PP should MD merge VV in IN order NN to TO compete VV regionally RB and CC better RBR prepare VV for IN foreign JJ competitors NNS following VVG liberalization NN . SENT The DT Government NP has VHZ already RB formulated VVN plans NNS to TO combine VV Soci NN t NN tunisienne NP de NP banque NP with IN BDET NP and CC BNDT NP and CC another DT merger NN involving VVG Union NP internationale NN de NP banques NP and CC BTEI NP is VBZ nearing VVG completion NN . SENT The DT authorities NNS hope VVP these DT operations NNS will MD stimulate VV similar JJ consolidation NN in IN private JJ banks NNS . SENT Asia NP and CC the DT Pacific NP Until IN recently RB , , cross VVP shareholding NN traditions NNS among IN friendly JJ Japanese JJ companies NNS discouraged VVN M NP As IN , , especially RB those DT involving VVG foreign JJ buyers NNS . SENT However RB , , the DT financial JJ crisis NN has VHZ meant VVN that IN banks NNS , , around IN which WDT company NN groups NNS are VBP organized VVN in IN keiretsu NN , , can MD no RB longer RB support VV weak JJ companies NNS indefinitely RB . SENT In IN 1998 CD Japan NP recorded VVD 834 CD M NP As IN across IN all DT sectors NNS . SENT The DT 1993 CD ILO NP Report NP submitted VVD to TO the DT tripartite JJ meeting NN on IN banking NN 34 CD stated VVN that IN The DT financial JJ crisis NN in IN Japan NP has VHZ already RB begun VVN to TO push VV smaller JJR banks NNS into IN forced VVN marriages NNS with IN big JJ groups NNS and CC the DT Bank NP of IN Japan NP has VHZ done VVN its PP$ utmost NN to TO arrange VV mergers NNS to TO prevent VV even RB a DT single JJ bank NN failure NN and CC this DT trend NN has VHZ continued VVN . SENT Stabilization NN measures NNS included VVD the DT injection NN of IN 7 CD . SENT 5 CD trillion CD yen NN of IN public JJ funds NNS into IN the DT sector NN and CC state NN supervision NN of IN failing VVG establishments NNS e SYM . SENT g NN . SENT the DT Long NP Term NP Credit NP Bank NP . SENT Greatly RB simplified VVN M NP A DT procedures NNS were VBD also RB introduced VVN , , effective JJ as IN from IN 1999 CD . SENT Analysts NNS believe VVP the DT number NN of IN large JJ banks NNS may MD eventually RB decline VV from IN 15 CD to TO four CD . SENT Meanwhile RB a DT number NN of IN foreign JJ financial JJ operators NNS , , mainly RB American JJ , , have VHP gained VVN substantial JJ positions NNS in IN the DT Japanese JJ financial JJ services NNS market NN with IN GE NP Capital NP concluding VVG a DT joint JJ venture NN in IN 1998 CD with IN Toho NP Mutual NP and CC taking VVG over RP its PP$ business NN following VVG its PP$ failure NN in IN 1999 CD . SENT GE NP Capital NP also RB took VVD over IN Japan NP Leasing NP for IN 6 CD . SENT 5 CD billion CD . SENT Other JJ financial JJ sector NN deals NNS in IN Japan NP include VVP the DT acquisition NN of IN LTCB NP by IN Ripplewood NP of IN the DT United NP States NPS , , Citigroup NP s PP acquisition NN of IN Nikko NP Securities NPS and CC Merrill NP Lynch NP s PP holdings NNS in IN Yamaichi NP Securities NPS . SENT The DT weakening NN of IN the DT Japanese JJ stock NN market NN in IN 2000 CD exacerbated VVD the DT problems NNS of IN the DT banking NN sector NN . SENT The DT big JJ banks NNS had VHD generally RB returned VVN to TO profitability NN in IN 1999 CD 2000 CD , , largely RB due JJ to TO gains NNS in IN their PP$ considerable JJ equity NN holdings NNS . SENT 35 CD However RB , , these DT gains NNS also RB indicate VVP the DT extent NN of IN the DT banks NNS exposure NN to TO Japan NP s PP highly RB leveraged JJ corporate JJ sector NN . SENT Interest NN rate NN increases NNS could MD swell VV corporate JJ failures NNS , , further RBR eroding VVG bank NN assets NNS . SENT Banks NNS are VBP responding VVG to TO these DT pressures NNS through IN M NP As IN to TO enable VV rationalization NN and CC to TO benefit VV from IN synergies NNS . SENT Eleven NN large JJ Japanese JJ banks NNS have VHP announced VVN plans NNS to TO merge VV into IN four CD new JJ banking NN organizations NNS , , three CD of IN which WDT will MD figure VV in IN the DT world NN s PP top VVP five CD by IN asset NN size NN , , with IN Mizuho NP combining VVG Fuji NP , , Dai NP Ichi NP Kangyo NP and CC Industrial NP Bank NP of IN Japan NP becoming VVG the DT world NN s VVZ largest JJS bank NN . SENT Table NN 3 CD . SENT 1 CD . SENT Japanese JJ bank NN mergers NNS Group NP Merging VVG banks NNS Combined VVN assets NNS , , March NP 2000 CD , , yen NN trillion CD Mizuho NP IBJ NP , , DKB NP , , Fuji NP 142 CD Sumitomo NP Mitsui NP Sumitomo NP , , Sakura NP 98 CD UFJ NP holdings NNS Sanwa NP , , Tokai NP , , Toyo NP Trust NP 78 CD Mitsubishi NP Tokyo NP Financial NP Group NP Tokyo NP Mitsubishi NP , , Mitsubishi NP Trust NP , , Nippon NP Trust NP , , Tokyo NP Trust NP 91 CD Source NN . SENT The DT Economist NP London NP and CC OECD NP , , op NN . SENT cit NNS . SENT The DT markets NNS have VHP not RB greeted VVN this DT news NN with IN enthusiasm NN . SENT bank NN shares NNS have VHP plummeted VVN 30 CD per IN cent NN since IN the DT fourth JJ quarter NN of IN 1999 CD . SENT Meanwhile RB , , the DT shake NN up RB of IN insurance NN is VBZ gathering VVG pace NN in IN Japan NP . SENT Discount NN insurers NNS , , among IN them PP foreign JJ firms NNS , , have VHP put VVN pressure NN on IN margins NNS , , especially RB in IN the DT car NN insurance NN business NN . SENT Banks NNS will MD soon RB be VB allowed VVN to TO compete VV with IN life NN insurers NNS to TO sell VV certain JJ types NNS of IN insurance NN and CC as RB from IN 2000 CD life NN and CC non JJ life NN insurers NNS will MD be VB able JJ to TO compete VV with IN one CD another DT and CC sell VV their PP$ products NNS directly RB . SENT In IN 2001 CD , , the DT Finance NP Ministry NP plans VVZ to TO deregulate VV the DT industry NN s PP third JJ sector NN of IN hybrid JJ products NNS , , including VVG accident NN and CC cancer NN insurance NN . SENT Growing VVG competition NN is VBZ thus RB impelling VVG insurance NN companies NNS to TO become VV bigger JJR and CC more RBR diversified JJ . SENT In IN August NP 2000 CD , , Yasuda NP Fire NP Marine NP announced VVD an DT alliance NN with IN Dai NP Ichi NP Mutual NP Life NP to TO sell VV old JJ policies NNS and CC develop VV new JJ ones NNS . SENT Dai NP Ichi NP plans VVZ to TO demutualize VV and CC list VV on IN the DT stock NN exchange NN , , a DT likely JJ first JJ step NN towards IN a DT full JJ merger NN . SENT The DT non JJ life NN subsidiary NN of IN Nippon NP Life NP also RB announced VVD it PP would MD merge VV with IN Dowa NP Fire NP and CC Marine NP by IN April NP 2001 CD . SENT Third NP ranked VVD Mitsui NP Marine NP and CC Fire NP started VVD talks NNS with IN fourth JJ ranked VVD Sumitomo NP Marine NP on IN a DT merger NN in IN which WDT Mitsui NP would MD be VB returning VVG to TO its PP$ parent NN keiretsu NN led VVN by IN Sakura NP Bank NP , , a DT new JJ partner NN of IN Sumitomo NP Bank NP , , which WDT leads VVZ the DT keiretsu NN to TO which WDT Sumitomo NP Marine NP belongs VVZ . SENT Some DT believe VVP Mitsui NNS s PP move VVP highlights VVZ the DT difficulty NN of IN consolidating VVG the DT non JJ life NN sector NN independently RB of IN the DT keiretsu NN framework NN , , where WRB ties NNS remain VVP strong JJ despite IN companies NNS efforts NNS to TO unravel VV cross NN shareholdings NNS . SENT Leading VVG Japanese JJ banks NNS are VBP expanding VVG into IN non JJ core JJ financial JJ businesses NNS , , as IN Big NP Bang NP reforms NNS sweep VV away RP barriers NNS in IN the DT financial JJ sector NN . SENT Four CD bank NN led VVD groups NNS have VHP emerged VVN around IN new JJ alliances NNS including VVG brokerages NNS , , trust NN banks NNS , , non JJ life NN insurance NN and CC life NN assurance NN companies NNS , , planning VVG eventually RB to TO offer VV one CD stop NN shopping NN for IN financial JJ products NNS . SENT Sanwa NP Bank NP announced VVD plans NNS to TO offer VV one CD stop NN shopping NN through IN Financial NP One CD , , an DT alliance NN of IN non JJ keiretsu NN companies NNS , , and CC spent VVD 1999 CD strengthening NN its PP$ securities NNS operations NNS . SENT Mizuho NP Financial NP Group NP intends VVZ to TO consolidate VV the DT bulk NN of IN its PP$ trust NN bank NN and CC wholesale JJ and CC retail JJ securities NNS operations NNS . SENT Elsewhere RB in IN Asia NP , , the DT fallout NN from IN the DT 1997 CD crisis NN continues VVZ to TO be VB felt VVN . SENT In IN July NP 2000 CD , , the DT Korea NP Federation NP of IN Bank NP and CC Financial NP Labour NN Unions NNS KFBU NP called VVD an DT indefinite JJ strike NN over IN government NN plans NNS to TO force VV failing VVG banks NNS to TO merge VV , , calling VVG it PP off RP after IN guarantees NNS there EX would MD be VB no RB lay VV offs NNS even RB in IN the DT event NN of IN mergers NNS . SENT The DT Government NP has VHZ also RB tabled VVN legislation NN to TO authorize VV the DT financial JJ holding NN companies NNS to TO facilitate VV bank NN mergers NNS and CC trade NN unions NNS fear VVP many JJ more JJR weak JJ banks NNS will MD be VB forced VVN to TO close VV with IN further JJR massive JJ job NN losses NNS to TO add VV to TO those DT already RB recorded VVN in IN the DT immediate JJ aftermath NN of IN the DT crisis NN . SENT Between IN 1997 CD and CC 1999 CD five CD commercial JJ banks NNS closed VVD while IN four CD other JJ institutions NNS merged VVD Commercial NP Bank NP with IN Hanil NP Bank NP to TO form VV Hanvit NP Bank NP and CC Kookmin NP with IN Long NP Term NP Credit NP Bank NP . SENT The DT number NN of IN commercial JJ banks NNS fell VVD from IN 26 CD to TO 17 CD and CC about RB one CD in IN seven CD branches NNS a DT total NN of IN 1 CD , , 100 CD closed VVD , , resulting VVG in IN the DT dismissal NN of IN a DT quarter NN of IN all DT banking NN staff NN 34 CD , , 000 CD of IN a DT total NN of IN 145 CD , , 000 CD . SENT Measures NNS to TO encourage VV the DT establishment NN of IN foreign JJ banks NNS were VBD also RB introduced VVN , , and CC their PP$ market NN penetration NN , , mainly RB through IN acquisitions NNS , , is VBZ expected VVN to TO increase VV . SENT The DT Government NP recently RB sold VVD Korea NP First NP Bank NP to TO a DT consortium NN led VVN by IN Newbridge NP of IN the DT United NP States NPS , , but CC efforts NNS to TO sell VV SeoulBank NP to TO HSBC NP collapsed VVD Insurance NP is VBZ undergoing VVG similar JJ restructuring NN . SENT Following VVG the DT closure NN of IN several JJ small JJ companies NNS in IN 1998 CD , , the DT authorities NNS decided VVD to TO merge VV six CD others NNS in IN 1999 CD and CC to TO sell VV Korea NP Life NP , , the DT third JJ largest JJS life NN assurer NN . SENT The DT Government NP has VHZ expressed VVN its PP$ determination NN to TO reform VV the DT huge JJ bankrupt JJ conglomerates NNS chaebol NN which WDT have VHP saddled VVN the DT financial JJ sector NN with IN about IN 47 CD . SENT 4 CD trillion CD won NN 42 CD . SENT 4 CD billion CD in IN bad JJ loans NNS , , nearly RB 10 CD per IN cent NN of IN total JJ outstanding JJ bank NN credit NN . SENT The DT financial JJ sector NN trade NN unions NNS argue VVP that IN banks NNS should MD not RB be VB used VVN to TO keep VV weak JJ companies NNS afloat RB and CC hold VV inconsistent JJ government NN policy NN responsible JJ for IN the DT banking NN system NN s PP instability NN . SENT The DT Government NP and CC the DT social JJ partners NNS are VBP aware JJ that IN clubby JJ relations NNS between IN chaebols NNS and CC banks NNS were VBD a DT key JJ factor NN in IN the DT 1997 CD crisis NN . SENT The DT ILO NP s PP Progress NP report NN 36 CD confirms VVZ this DT analysis NN , , noting VVG that IN some DT chaebols NNS belief NN in IN their PP$ invulnerability NN encouraged VVD them PP to TO undertake VV very RB risky JJ investments NNS . SENT Malaysia NP plans VVZ to TO merge VV its PP$ 54 CD financial JJ institutions NNS into IN ten CD banking NN financial JJ services NNS groups NNS by IN December NP 2000 CD . SENT A DT carrots NNS and CC sticks NNS approach NN involves VVZ tax NN sweeteners NNS and CC threats NNS that IN recalcitrant JJ institutions NNS would MD otherwise RB not RB get VV their PP$ operating NN licences NNS renewed VVD . SENT The DT rationalization NN of IN branches NNS and CC retrenchments NNS are VBP envisaged VVN to TO limit VV post NN integration NN operating VVG costs NNS and CC maximize VV the DT viability NN of IN the DT new JJ groups NNS . SENT Thailand NP , , where WRB the DT Asian JJ financial JJ crisis NN started VVD , , has VHZ experienced VVN the DT most RBS extensive JJ and CC prolonged JJ negative JJ employment NN repercussions NNS as IN a DT result NN of IN sectoral JJ consolidation NN . SENT An DT ILO NP commissioned VVD report NN noted VVD over IN 26 CD , , 000 CD lay VVD offs NNS of IN a DT total NN of IN 50 CD , , 000 CD sectoral JJ workers NNS between IN the DT beginning NN of IN the DT crisis NN and CC December NP 1999 CD , , although IN only RB a DT quarter NN of IN the DT lay VVD offs NNS could MD be VB attributed VVN to TO merger NN related JJ rationalization NN . SENT In IN the DT merger NN between IN Bangkok NP Bank NP of IN Commerce NP and CC First NP Bangkok NP City NP Bank NP , , two CD thirds NNS of IN 9 CD , , 109 CD employees NNS were VBD laid VVN off RP . SENT Similar JJ , , though RB smaller JJR , , job NN losses NNS were VBD recorded VVN in IN 2000 CD with IN the DT mergers NNS of IN KTB NP and CC Bank NP Thai NP , , and CC the DT acquisitions NNS in IN 1999 CD of IN both DT Radhanasin NP Bank NP and CC Nakornthon NP Bank NP , , by IN the DT United NP Overseas NP Bank NP of IN Singapore NP and CC Britain NP s PP Standard NP Chartered VVD , , respectively RB . SENT Standard NP Chartered VVD instituted VVN downsizing NN measures NNS in IN Nakornthon NP immediately RB after IN the DT takeover NN , , reducing VVG staff NN by IN 112 CD by IN the DT end NN of IN 1999 CD . SENT KTB NP initially RB retained VVD all DT staff NN , , including VVG those DT from IN the DT acquired VVN banks NNS , , but CC eventually RB restructured VVN its PP$ combined JJ operation NN , , introducing VVG incentives NNS to TO encourage VV early JJ retirement NN which WDT have VHP so RB far RB resulted VVN in IN the DT departure NN of IN 2 CD , , 372 CD employees NNS . SENT Following VVG the DT merger NN of IN Union NP Bank NP of IN Bangkok NP with IN KrungThai NP Thanakit NP Finance NP and CC 12 CD other JJ finance NN companies NNS in IN 1998 CD into IN Bank NP Thai NP , , 1 CD , , 189 CD employees NNS lost VVD their PP$ jobs NNS , , out RB of IN a DT total NN of IN 4 CD , , 571 CD . SENT Box NP 3 CD . SENT 1 CD . SENT Deregulation NN and CC financial JJ liberalization NN in IN Thailand NP In IN the DT early JJ 1990 CD s PP , , Thailand NP embarked VVD on IN deregulation NN and CC financial JJ liberalization NN , , starting VVG with IN the DT acceptance NN of IN article NN 8 CD of IN the DT IMF NP agreement NN , , phased VVN in IN liberalization NN of IN capital NN flows NNS , , deregulation NN in IN the DT operational JJ scope NN of IN financial JJ institutions NNS and CC a DT partial JJ entry NN of IN foreign JJ competitors NNS . SENT The DT liberalization NN and CC globalization NN of IN the DT financial JJ system NN , , in IN conjunction NN with IN inadequate JJ and CC inappropriate JJ safeguards NNS , , inefficient JJ resource NN management NN , , an DT inadequate JJ supervisory JJ and CC financial JJ infrastructure NN and CC an DT underestimation NN of IN the DT scale NN of IN the DT crisis NN , , led VVN in IN part NN to TO higher JJR unemployment NN and CC Thailand NP s PP current JJ problems NNS . SENT they PP also RB stimulated VVN consolidation NN in IN the DT industry NN . SENT The DT acceptance NN of IN the DT General NP Agreement NP on IN Trade NP in IN Services NPS changed VVD the DT industry NN s PP structure VV . SENT The DT oligopolistic JJ power NN of IN commercial JJ banks NNS eroded VVN as IN competition NN from IN foreign JJ commercial JJ banks NNS strengthened VVD . SENT Thai NP financial JJ institutions NNS began VVD to TO reorganize VV , , but CC this DT reorganization NN and CC adjustment NN had VHD not RB progressed VVN enough RB by IN 1997 CD to TO escape VV the DT financial JJ crisis NN , , which WDT affected VVD the DT soundness NN of IN Thai NP commercial JJ banks NNS more RBR than IN their PP$ foreign JJ rivals NNS . SENT Some DT small JJ banks NNS and CC finance NN companies NNS closed VVD , , while IN the DT rest NN were VBD forced VVN to TO recapitalize VV . SENT With IN larger JJR volumes NNS of IN non JJ performing VVG loans NNS , , due JJ to TO a DT steep JJ decline NN in IN property NN values NNS , , Thai NP banks NNS had VHD to TO increase VV provisioning VVG , , which WDT at IN the DT end NN of IN 1998 CD amounted VVD to TO 13 CD per IN cent NN of IN total JJ credits NNS , , twice RB the DT 1997 CD level NN . SENT However RB , , some DT small JJ and CC medium NN sized VVD Thai NP banks NNS could MD not RB meet VV the DT stringent JJ provisioning VVG and CC recapitalization NN requirements NNS . SENT The DT economic JJ contraction NN that WDT began VVD in IN early JJ 1998 CD , , attributed VVN to TO illiquidity NN in IN the DT economic JJ system NN , , aggravated VVD the DT problem NN of IN non JJ performing VVG loans NNS . SENT Restrictions NNS on IN the DT foreign JJ ownership NN of IN Thai NP institutions NNS were VBD relaxed VVN , , spurring VVG an DT increase NN in IN M NP As RB . SENT In IN 2000 CD , , there EX were VBD 13 CD Thai NP and CC 21 CD foreign JJ banks NNS . SENT In IN 1999 CD , , four CD big JJ Thai NP commercial JJ banks NNS accounted VVD for IN almost RB 58 CD per IN cent NN of IN sectoral JJ employment NN and CC a DT comparable JJ proportion NN of IN total JJ assets NNS . SENT The DT balance NN was VBD distributed VVN among IN nine CD domestic JJ and CC 21 CD foreign JJ banks NNS . SENT Despite IN changes NNS following VVG the DT crisis NN , , banking NN remains VVZ oligopolistic JJ , , though IN its PP$ structure NN has VHZ gradually RB changed VVN since IN liberalization NN . SENT Source NN . SENT P NN . SENT Chasombut NP and CC Y NP . SENT Kongtong NP , , Study NN for IN the DT ILO NP , , 2000 CD . SENT Since IN financial JJ sector NN consolidation NN in IN New NP Zealand NP and CC Australia NP started VVD in IN the DT early JJ 1990 CD s PP , , sufficient JJ time NN has VHZ elapsed VVN to TO review VV its PP$ medium NN and CC long JJ term NN employment NN effects NNS . SENT Data NNS for IN New NP Zealand NP shows VVZ a DT combined JJ employment NN decline NN in IN four CD merged JJ companies NNS of IN 13 CD . SENT 8 CD per IN cent NN , , with IN the DT biggest JJS percentage NN drop NN seen VVN in IN Countrywide NP United NP following VVG their PP$ 1992 CD merger NN . SENT The DT similarities NNS in IN the DT characteristics NNS of IN merging VVG institutions NNS , , such JJ as IN size NN and CC business NN profiles NNS , , extensiveness NN of IN branch NN networks NNS and CC type NN of IN customer NN base NN , , usually RB indicate VVP the DT extent NN of IN likely JJ job NN cuts NNS . SENT In IN the DT Westpac NP and CC Trust NP Bank NP merger NN of IN 1996 CD , , roughly RB 40 CD per IN cent NN of IN branches NNS closed VVN with IN job NN losses NNS of IN 28 CD per IN cent NN . SENT New NP Zealand NP s PP banking VVG industry NN is VBZ dominated VVN by IN Australia NP s VVZ four CD big JJ banks NNS and CC pressure NN has VHZ been VBN growing VVG for IN the DT Australian JJ Government NN to TO allow VV mergers NNS between IN the DT dominant JJ four CD . SENT There EX are VBP fears NNS that IN potential JJ efficiency NN gains NNS could MD well RB be VB outweighed VVN by IN a DT reduction NN in IN consumer NN choice NN and CC the DT possibility NN that IN the DT reduced JJ competition NN might MD allow VV the DT remaining VVG banks NNS to TO increase VV their PP$ charges NNS for IN financial JJ intermediation NN . SENT FinSec NP , , the DT New NP Zealand NP financial JJ sector NN trade NN union NN , , has VHZ noted VVN post NN merger NN employment NN losses NNS in IN the DT country NN s PP banks NNS see VVP table NN 3 CD . SENT 2 CD below RB though IN it PP does VVZ not RB attribute VV these DT exclusively RB to TO the DT mergers NNS , , pointing VVG to TO general JJ rationalization NN strategies NNS and CC the DT impact NN of IN technology NN as IN contributing VVG factors NNS . SENT Table NN 3 CD . SENT 2 LS . SENT Pre NP and CC post VV merger NN employment NN levels NNS in IN New NP Zealand NP Combined NP employers NNS Pre NP merger NN 1991 CD Post NP merger NN 1995 CD change NN 1991 CD 95 CD ANZ NP Post NP Bank NP 1984 CD 6 CD 876 JJ 5 CD 953 CD 13 CD . SENT 4 CD Countrywide NP United NP 1992 CD 1 CD 625 JJ 1 CD 189 CD 26 CD . SENT 8 CD National NP Rural NP 1992 CD 3 CD 952 JJ 3 CD 821 CD 3 CD . SENT 7 CD BNZ NP NAB VV 1993 CD 6 CD 498 JJ 5 CD 549 CD 17 CD . SENT 1 CD Total JJ 19 CD 151 CD 16 JJ 512 CD 13 CD . SENT 8 CD Date NN of IN merger NN in IN brackets NNS . SENT Source NN . SENT FinSec JJ submission NN to TO the DT Inquiry NP into IN the DT Australian JJ financial JJ system NN , , tables NNS 7 CD 10 CD . SENT As IN elsewhere RB , , the DT effects NNS of IN mergers NNS in IN Australia NP must MD be VB viewed VVN in IN conjunction NN with IN rationalization NN motivated VVN by IN other JJ factors NNS , , but CC the DT effects NNS of IN a DT takeover NN of IN State NP Bank NP of IN Victoria NP by IN Commonwealth NP Bank NP in IN 1991 CD involved VVD a DT 20 CD . SENT 8 CD per IN cent NN reduction NN in IN the DT staff NN of IN the DT merged JJ bank NN in IN the DT state NN of IN Victoria NP alone RB , , the DT disappearance NN of IN 8 CD , , 000 CD jobs NNS and CC the DT closure NN of IN 428 CD branches NNS . SENT Westpac NP Bank NP s PP acquisition NN of IN Bank NP of IN Melbourne NP in IN 1997 CD involved VVD more JJR than IN 1 CD , , 200 CD job NN losses NNS and CC 119 CD branch NN closures NNS , , while IN the DT acquisition NN of IN Town NP Country NP Bank NP WA NP by IN ANZ NP in IN 1995 CD was VBD followed VVN by IN the DT closure NN of IN 49 CD Western JJ Australian JJ branches NNS and CC an DT indeterminate JJ number NN of IN lost JJ jobs NNS . SENT Westpac NP is VBZ also RB reported VVN to TO be VB implementing VVG a DT performance NN enhancement NN plan NN which WDT aims VVZ to TO cut VV another DT 3 CD , , 000 CD jobs NNS nationally RB over IN two CD years NNS , , while IN Commonwealth NP Bank NP intends VVZ to TO develop VV its PP$ in IN store NN banking NN services NNS through IN its PP$ EzyBanking NP outlets NNS and CC close VV an DT estimated JJ 640 CD branches NNS . SENT The DT Finance NP Sector NN Union NP of IN Australia NP FSU NP reports VVZ that IN the DT trend NN in IN rationalization NN , , facilitated VVN by IN M NP As RB , , will MD cause VV massive JJ job NN losses NNS should MD the DT federal JJ authorities NNS approve VVP mergers NNS among IN the DT four CD largest JJS national JJ banks NNS which WDT together RB employ VVP 80 CD , , 000 CD people NNS . SENT These DT institutions NNS have VHP already RB shed VVN about IN 40 CD , , 000 CD jobs NNS and CC closed VVD 200 CD branches NNS since IN 1993 CD , , generating VVG an DT increase NN in IN bank NN profits NNS of IN 286 CD per IN cent NN . SENT Because IN of IN the DT considerable JJ overlap VVP in IN operational JJ areas NNS between IN Colonial NP and CC Commonwealth NP , , a DT merger NN between IN the DT two CD would MD lead VV to TO the DT disappearance NN of IN tens NNS of IN thousands NNS of IN jobs NNS . SENT Western NP Europe NP Banking NP overcapacity NN is VBZ considered VVN a DT problem NN by IN financial JJ service NN operators NNS , , who WP believe VVP that DT new JJ information NN technologies NNS will MD enable VV efficiency NN seeking VVG companies NNS to TO reduce VV both DT personnel NNS and CC branches NNS and CC that IN , , if IN new JJ distribution NN channels NNS Internet NN , , mobile JJ phones NNS , , etc FW . SENT are VBP widely RB adopted VVN while IN traditional JJ networks NNS remain VVP , , inefficiency NN and CC high JJ costs NNS will MD damage VV the DT profitability NN and CC solvency NN of IN banks NNS . SENT The DT importance NN of IN banking NN differs VVZ tremendously RB from IN one CD country NN to TO another DT , , with IN shares NNS of IN banking NN assets NNS varying VVG between IN 70 CD and CC 300 CD per IN cent NN of IN GDP NP . SENT The DT income NN structure NN is VBZ also RB changing VVG to TO resemble VV that IN of IN the DT United NP States NP , , where WRB the DT share NN of IN net JJ interest NN income NN in IN total JJ income NN has VHZ started VVN to TO decline VV . SENT Country NN differences NNS in IN net JJ interest NN margin NN are VBP considerable JJ , , with IN the DT European NP Union NP EU NP average NN much RB narrower JJR than IN the DT American JJ margins NNS . SENT The DT focus NN of IN banking NN income NN and CC activity NN is VBZ gradually RB moving VVG away RB from IN interest NN income NN to TO other JJ sources NNS of IN revenue NN as IN banks NNS seek VVP to TO become VV providers NNS of IN a DT wide JJ range NN of IN financial JJ services NNS . SENT The DT borders NNS between IN banking NN , , insurance NN , , securities NNS and CC other JJ financial JJ services NNS are VBP blurring VVG and CC may MD soon RB disappear VV completely RB . SENT The DT composition NN of IN non JJ interest NN income NN also RB varies VVZ widely RB . SENT The DT share NN of IN fees NNS and CC commissions NNS in IN total JJ income NN is VBZ increasing VVG , , reflecting VVG banks NNS growing VVG market NN share NN in IN the DT mutual JJ fund NN and CC life NN insurance NN businesses NNS and CC also RB the DT trend NN towards IN the DT fuller JJR pricing NN of IN payment NN services NNS , , previously RB underpriced VVN or CC even RB provided VVN free JJ of IN charge NN for IN tax NN reasons NNS . SENT There EX is VBZ no DT clear JJ evidence NN whether IN net JJ interest NN income NN or CC non JJ interest NN income NN is VBZ the DT more RBR volatile JJ or CC riskier JJR component NN of IN total JJ income NN . SENT Net JJ profit NN on IN financial JJ operations NNS capital NN gains NNS or CC losses NNS is VBZ , , however RB , , the DT most RBS volatile JJ income NN component NN . SENT Industry NN experts NNS insist VVP that IN before IN deregulation NN in IN the DT early JJ 1990 CD s PP EU NP markets NNS were VBD overbanked VVN , , with IN the DT number NN of IN personnel NNS and CC branches NNS continuing VVG to TO increase VV until IN the DT mid JJ 1990 CD s PP . SENT Restructuring NN has VHZ since RB advanced VVD rapidly RB . SENT Mergers NNS have VHP so RB far RB been VBN mainly RB domestic JJ , , with IN the DT aim NN apparently RB being JJ to TO create VV national JJ champions NNS before IN entering VVG into IN cross NN border NN mergers NNS . SENT 37 RB The DT current JJ run NN of IN domestic JJ market NN consolidation NN increasingly RB large JJ domestic JJ retail JJ banking NN mergers NNS may MD be VB in IN its PP$ final JJ phase NN . SENT Some DT banks NNS seem VVP to TO have VH chosen VVN to TO enter VV cross NN border NN retail JJ business NN via IN the DT Internet NN rather RB than IN through IN mergers NNS or CC physical JJ outlets NNS . SENT The DT number NN of IN banks NNS in IN the DT EU NP has VHZ declined VVN rapidly RB since IN 1990 CD see VVP table NN 3 CD . SENT 3 LS , , with IN cooperative NN and CC savings NN banks NNS contracting VVG up RP until IN 1997 CD , , while IN the DT number NN of IN commercial JJ banks NNS has VHZ grown VVN , , although IN preliminary JJ data NNS indicate VVP they PP too RB have VHP declined VVN as IN M NP As RB have VHP increased VVN . SENT The DT consolidation NN of IN small JJ savings NNS and CC cooperative JJ banks NNS enabled VVD them PP to TO increase VV their PP$ overall JJ shares NNS of IN total JJ banking NN assets NNS , , although IN these DT remain VVP roughly RB stable JJ as IN against IN those DT of IN the DT commercial JJ banks NNS , , which WDT still RB dominate VVP . SENT In IN a DT few JJ countries NNS , , local JJ savings NNS and CC cooperative JJ banks NNS are VBP dominant JJ players NNS , , especially RB in IN retail JJ banking NN . SENT Table NN 3 CD . SENT 3 LS . SENT Total JJ number NN of IN banks NNS in IN 15 CD EU NP countries NNS 1990 CD 1993 CD 1995 JJ 1996 CD 1997 CD Savings NP banks NNS 1 CD 650 CD 1 CD 270 JJ 1 CD 120 CD 1 CD 060 JJ 1 CD 010 CD Cooperative JJ banks NNS 10 CD 600 CD 9 CD 600 JJ 5 CD 640 CD 5 CD 600 JJ 5 CD 100 CD Commercial NP banks NNS 2 CD 390 CD 2 CD 600 JJ 2 CD 640 CD 2 CD 700 JJ 2 CD 710 CD Total JJ 14 CD 640 CD 13 JJ 470 CD 9 CD 400 JJ 9 CD 360 CD 8 CD 820 CD Source NN . SENT H NP . SENT Koskenkyl NP . SENT Threats NNS and CC opportunities NNS for IN today NN s PP European JJ banks NNS Bank NP of IN Finland NP , , 2000 CD , , paper NN submitted VVD to TO the DT Institute NP of IN Economic NP Affairs NPS Conference NP on IN European NP Retail NP Banking NP , , Geneva NP , , 22 CD 23 CD Feb NN . SENT 2000 CD . SENT Table NN 3 CD . SENT 4 LS . SENT Shares NNS of IN total JJ banking NN assets NNS in IN 15 CD EU NP countries NNS 1990 CD 1995 CD 1998 CD Savings NP banks NNS 14 CD . SENT 6 CD 15 CD . SENT 7 CD 15 CD . SENT 8 CD Cooperative JJ banks NNS 12 CD . SENT 0 CD 11 CD . SENT 5 CD 12 CD . SENT 3 CD Commercial NP banks NNS 73 CD . SENT 4 CD 72 CD . SENT 8 CD 71 CD . SENT 9 CD Source NN . SENT Kostenkyl NP , , op NN . SENT cit NNS . SENT M NP As IN in IN Spain NP , , while IN relatively RB recent JJ , , are VBP now RB common JJ and CC the DT entire JJ sector NN has VHZ been VBN radically RB restructured VVN , , starting VVG with IN the DT 1988 CD Banco NP Bilbao NP and CC Banco NP Vizcaya NP merger NN into IN BBV NP , , followed VVN by IN the DT amalgamation NN of IN Banco NP Central NP and CC Banco NP Hispano NP . SENT After IN the DT 1993 CD acquisition NN of IN near JJ bankrupt JJ Banesto NN , , Banco NP Santander NP merged VVD with IN Banco NP Central NP Hispano NP to TO create VV BSCH NP , , extensively RB represented VVN in IN Latin NP America NP and CC employing VVG 106 CD , , 000 CD workers NNS serving VVG 22 CD million CD clients NNS worldwide RB . SENT Mega JJ banking NN group NN BBVA NP with IN 91 CD , , 000 CD employees NNS is VBZ the DT 1999 CD product NN of IN a DT merger NN between IN BBV NP and CC Argentaria NP , , previously RB ranked VVD second JJ and CC third JJ among IN Spanish JJ banks NNS . SENT BBVA NP is VBZ also RB solidly RB implanted VVN in IN Latin NP America NP , , where WRB it PP is VBZ considered VVN the DT second JJ largest JJS financial JJ services NNS operator NN , , with IN 2 CD , , 200 CD branches NNS and CC a DT key JJ position NN in IN pension NN funds NNS . SENT Following VVG the DT privatization NN of IN state NN financial JJ institutions NNS , , Banco NP Exterior NP de NP Espa NP a DT absorbed VVN Banco NP de NP Cr NP dito NP Industrial NP , , while IN Banco NP de NP Cr NP dito NP Agricola NP was VBD acquired VVN by IN Postal NP Bank NP . SENT In IN 1998 CD , , the DT two CD resultant JJ banks NNS merged VVN and CC , , together RB with IN Banco NP Hipotecario NP de NP Espa NP a DT , , formed VVN Argentaria NP , , Caja NP Postal NP y NP Banco NP Hipotecario NP SA NP . SENT Subsequently RB , , Banco NP Santander NP and CC Banco NP Central NP Hispano NP Americano NP combined VVD in IN January NP 1999 CD to TO create VV Banco NP Santander NP Central NP Hispano NP Americano NP , , among IN the DT top JJ three CD in IN Europe NP in IN terms NNS of IN market NN capitalization NN and CC number NN one NN in IN Latin JJ American JJ investments NNS . SENT Spanish JJ authorities NNS have VHP supported VVN financial JJ sector NN consolidation NN as IN a DT way NN towards IN cost NN reduction NN and CC improving VVG national JJ financial JJ sector NN competitiveness NN in IN the DT Euro NP zone NN . SENT Even RB when WRB the DT impact NN of IN new JJ technologies NNS is VBZ factored VVN out RP , , banking VVG M NP As RB have VHP had VHD a DT substantial JJ negative JJ effect NN on IN employment NN . SENT According VVG to TO the DT Spanish JJ financial JJ sector NN trade NN union NN , , jobs NNS in IN the DT banking NN sector NN declined VVD from IN 180 CD , , 000 CD to TO 129 CD , , 000 CD between IN 1980 CD and CC December NP 1999 CD , , mainly RB due JJ to TO merger NN linked VVD forced VVN early JJ retirements NNS , , sometimes RB thinly RB disguised VVN as IN voluntary JJ . SENT The DT first JJ major JJ M NP A NP in IN Spanish JJ insurance NN involved VVN AGF NP acquiring VVG La NP Uni NN n NN y NN el NN F NN nix NN Espa NP ol NN . SENT The DT resulting VVG job NN losses NNS were VBD spread VVN across IN countries NNS in IN which WDT the DT companies NNS had VHD overlapping JJ operations NNS , , including VVG France NP , , Belgium NP , , Portugal NP and CC Spain NP . SENT Losses NNS in IN Spain NP , , mainly RB through IN voluntary JJ redundancies NNS , , early JJ retirement NN and CC attrition NN spread NN over IN three CD years NNS , , totalled VVD up RB to TO 1 CD , , 000 CD jobs NNS . SENT In IN Greece NP , , the DT 1998 CD privatization NN and CC sale NN of IN Ionian NP and CC Popular NP Bank NP to TO Alpha NP Credit NP Bank NP , , within IN the DT Government NN s VVZ wider JJR economic JJ restructuring NN programme NN to TO reduce VV the DT size NN of IN the DT public JJ sector NN and CC facilitate VV Greek JJ entry NN into IN European JJ economic JJ and CC monetary JJ union NN , , was VBD contentious JJ . SENT Banking NN sector NN employees NNS held VVD a DT nine CD day NN strike NN in IN 1998 CD to TO express VV their PP$ opposition NN , , demanding VVG that IN Ionian NP be VB merged VVN with IN its PP$ public JJ sector NN parent NN company NN , , Commercial NP Bank NP of IN Greece NP , , to TO allay VV fears NNS of IN redundancies NNS among IN the DT 4 CD , , 100 CD strong JJ workforce NN . SENT The DT Government NN eventually RB prevailed VVN but CC conditioned VVN the DT sale NN to TO Alpha NP on IN the DT avoidance NN of IN large JJ scale NN redundancies NNS . SENT 38 CD With IN 3 CD , , 400 CD independent JJ establishments NNS in IN 1999 CD , , German JJ banking NN remains VVZ fragmented JJ and CC overbanked JJ , , with IN an DT average NN of IN over IN 830 CD branches NNS and CC other JJ distribution NN outlets NNS per IN million CD inhabitants NNS against IN an DT EU NP average NN of IN 528 CD . SENT The DT share NN of IN the DT five CD largest JJS banks NNS in IN total JJ assets NNS is VBZ 18 CD per IN cent NN , , compared VVN with IN over IN 80 CD per IN cent NN in IN the DT Netherlands NPS and CC Sweden NP . SENT The DT 1998 CD merger NN of IN Bayerische NP Vereinsbank NP and CC HypoBank NP created VVD Germany NP s PP second RB ranked VVD private JJ bank NN , , HypoVereinsbank NP or CC HVB NP , , which WDT in IN 2000 CD announced VVD it PP was VBD acquiring VVG Bank NP Austria NP , , with IN 280 CD domestic JJ offices NNS and CC a DT network NN in IN Poland NP , , the DT Czech NP Republic NP and CC Hungary NP , , where WRB growth NN prospects NNS are VBP considered VVN particularly RB strong JJ . SENT The DT German JJ non JJ private JJ financial JJ sectors NNS have VHP been VBN undergoing VVG slow JJ but CC sustained JJ consolidation NN for IN several JJ years NNS . SENT The DT number NN of IN cooperative JJ bank NN organizations NNS fell VVD by IN a DT third JJ in IN ten CD years NNS . SENT While IN concentration NN is VBZ a DT sensitive JJ subject NN in IN Germany NP , , German JJ banks NNS have VHP been VBN expanding VVG abroad RB . SENT Commerzbank NP established VVD extensive JJ alliances NNS significant JJ shareholdings NNS in IN the DT Italian JJ bank NN Comit NP , , the DT insurer NN Generali NP , , and CC cooperation NN arrangements NNS in IN Spain NP and CC Austria NP , , while IN Deutsche NP Bank NP took VVD over IN Bankers NPS Trust NP then RB ranked VVD eighth JJ in IN the DT United NP States NPS in IN 1998 CD , , characterizing VVG the DT cultural JJ transformation NN of IN a DT German JJ universal JJ bank NN into IN an DT Anglo NP American NP style NN investment NN bank NN . SENT A DT report NN entitled VVN Concentration NN of IN forces NNS . SENT One CD association NN one CD strategy NN by IN the DT Federal NP Association NP of IN Popular NP and CC Raiffeisen NP banks NNS concludes VVZ that DT concentration NN is VBZ accelerating VVG and CC transforming VVG the DT cooperative JJ sector NN , , arguing VVG that IN while IN earlier JJR mergers NNS aimed VVN to TO increase VV the DT size NN of IN companies NNS and CC associated VVN synergies NNS , , now RB synergies NNS are VBP the DT focus NN to TO be VB achieved VVN systematically RB by IN M NP As RB . SENT Reined VVN in IN by IN the DT small JJ size NN of IN their PP$ domestic JJ markets NNS , , Dutch JJ and CC Belgian JJ bankers NNS embarked VVD very RB early JJ on IN international JJ acquisitions NNS and CC mergers NNS , , with IN government NN encouragement NN . SENT Banking NN restructuring NN in IN the DT Netherlands NPS resulted VVD in IN the DT birth NN of IN two CD giants NNS ABN NP AMRO NP and CC ING NP at IN the DT beginning NN of IN the DT 1990 CD s PP . SENT In IN 1990 CD , , a DT year NN after IN failing VVG in IN its PP$ ambitions NNS to TO merge VV with IN G NP n NN rale NN de NP Banque NP of IN Belgium NP , , AMRO NP combined VVD with IN ABN NP to TO create VV ABN NP AMRO NP , , the DT premier JJ Dutch JJ bank NN . SENT Its PP$ close JJ national JJ rival NN , , ING NP Group NP , , is VBZ the DT product NN of IN a DT 1991 CD merger NN between IN the DT top JJ insurer NN Nationale NP Nederlanden NP and CC NMB NP Postbank NP , , a DT bank NN and CC itself PP the DT result NN of IN a DT merger NN between IN Post NP Office NP Bank NP and CC Nederlandse NP Middenstandsbank NP . SENT Since IN then RB , , unable JJ to TO expand VV further JJR on IN a DT domestic JJ market NN that WDT had VHD become VVN too RB small JJ for IN its PP$ ambitions NNS , , ING NP has VHZ adopted VVN a DT sustained JJ growth NN strategy NN based VVN on IN international JJ acquisitions NNS . SENT In IN 1995 CD it PP acquired VVD Barings NP , , close JJ to TO bankruptcy NN due JJ to TO a DT trading NN scandal NN in IN its PP$ Singapore NP operations NNS and CC bought VVD Banque NP Bruxelles NP Lambert NP in IN 1997 CD . SENT The DT ING NP Group NP , , an DT excellent JJ example NN of IN European JJ bancassurance NN , , acquired VVD Berliner NP Handels NP und NN Frankfurter NN Bank NP in IN 1999 CD and CC now RB has VHZ 83 CD , , 000 CD employees NNS in IN its PP$ 80 CD offices NNS in IN 61 CD countries NNS . SENT In IN Belgium NP , , KBC NP is VBZ the DT result NN of IN a DT 1998 CD merger NN between IN Kredietbank NP , , Cera NP a DT cooperative JJ and CC ABB NP an DT insurance NN company NN . SENT The DT bancassurance NN company NN Artesia NP also RB acquired VVD France NP s PP Banque NP Vernes NP in IN 1998 CD , , while IN Fortis NP , , a DT Dutch JJ Belgian JJ bancassurer NN , , bought VVD G NP n NN rale NN de NP Banque NP in IN 1997 CD . SENT The DT total JJ number NN of IN banking NN sector NN employees NNS in IN 1999 CD was VBD 76 CD , , 432 CD compared VVN to TO 77 CD , , 028 CD a DT year NN earlier RBR , , 76 CD , , 112 CD in IN 1996 CD and CC 76 CD , , 541 CD in IN 1995 CD , , reflecting VVG an DT average NN of IN just RB over IN 76 CD , , 000 CD employees NNS for IN the DT period NN . SENT The DT numerous JJ M NP As RB do VVP not RB therefore RB seem VVP to TO have VH affected VVN overall JJ sectoral JJ employment NN . SENT According VVG to TO the DT Belgian JJ Banking NP Association NP , , there EX is VBZ continuing VVG strong JJ growth NN in IN the DT employment NN of IN executive NN and CC professional JJ staff NN . SENT Similarly RB , , women NNS workers NNS share NN of IN jobs NNS in IN commercial JJ banks NNS rose VVD from IN 38 CD . SENT 5 CD per IN cent NN in IN 1990 CD to TO 42 CD per IN cent NN by IN 1998 CD , , most RBS significantly RB in IN management NN where WRB it PP rose VVD from IN 6 CD . SENT 6 CD per IN cent NN in IN 1990 CD to TO 17 CD . SENT 2 CD per IN cent NN by IN 1999 CD and CC at IN the DT executive NN and CC professional JJ level NN 17 CD . SENT 8 CD per IN cent NN in IN 1990 CD to TO 24 CD . SENT 2 CD per IN cent NN in IN 1999 CD . SENT Spain NP s PP BSCH NP has VHZ entered VVN into IN an DT agreement NN with IN Portuguese JJ financial JJ group NN Champalimaud NN for IN eventual JJ joint JJ control NN of IN Champalimaud NP by IN BSCH NP and CC Caixa NP Geral NP de NP Dep NP sitos NNS of IN Portugal NP . SENT Two CD other JJ mergers NNS involving VVG Banco NP Comercial NP Portugu NP s PP and CC Banco NP Mello NP , , and CC Banco NP Esp NP ritu NP Santo NP and CC Banco NP Portugu NP s PP de NP Investimento NP were VBD announced VVN in IN 2000 CD . SENT In IN Italy NP , , banking NN sector NN consolidation NN increased VVN in IN the DT late JJ 1980 CD s PP with IN the DT pace NN further RBR accelerating JJ in IN the DT mid JJ 1990 CD s PP . SENT The DT 111 CD combinations NNS between IN 1980 CD and CC 1989 CD concerned VVN only RB a DT very RB small JJ part NN of IN the DT sector NN 3 CD . SENT 4 CD per IN cent NN of IN the DT market NN , , but CC between IN 1990 CD and CC 1998 CD there RB were VBD 409 CD operations NNS of IN which WDT 173 NP were VBD in IN the DT Banche NP di NP Credito NP Cooperativo NP or CC BCC NP category NN , , representing VVG 23 CD per IN cent NN of IN the DT market NN share NN . SENT In IN 1998 CD alone RB , , there EX were VBD 54 CD M NP As IN involving VVG banks NNS , , representing VVG a DT total NN of IN 30 CD . SENT 5 CD per IN cent NN of IN banking NN assets NNS , , with IN the DT three CD biggest JJS operations NNS Credito NP Italiano NP and CC Unicredito NP , , San NP Paolo NP and CC IMI NP , , Intesa NP and CC Cariparma NP , , then RB Banca NP Friul NP Adria NP the DT result NN of IN friendly JJ agreement NN . SENT Meanwhile RB , , Monte NP di NP Paschi NP acquired VVD 60 CD per IN cent NN of IN Banca NP Agricola NP de NP Mantavona NP , , while IN the DT 1999 CD blending NN of IN Banca NP Intesa NP and CC Comit NP Banca NP Commerciale NP Italiana NP formed VVD the DT country NN s VVZ largest JJS financial JJ group NN , , Cuccia NP . SENT Italian JJ regional JJ banks NNS have VHP not RB remained VVN simple JJ spectators NNS . SENT the DT Banca NP Popolare NP Vicenza NP Group NP , , itself PP a DT product NN of IN six CD banks NNS acquired VVN in IN recent JJ years NNS , , continues VVZ to TO rely VV on IN acquisitions NNS for IN growth NN and CC Central NP Bank NP policy NN has VHZ encouraged VVN northern JJ regional JJ banks NNS to TO participate VV in IN stabilizing VVG the DT banking NN system NN through IN the DT acquisition NN of IN distressed JJ southern JJ banks NNS . SENT In IN line NN with IN this DT policy NN , , for IN example NN , , Banca NP Popolare NP dell NN Emilia NP Romagna NP has VHZ taken VVN over IN control NN of IN Banca NP Popolare NP di NP Crotone NP . SENT In IN cases NNS of IN this DT nature NN , , however RB , , the DT acquirer NN is VBZ often RB obliged VVN to TO preserve VV its PP$ target NN s PP autonomy NN for IN several JJ years NNS after IN the DT acquisition NN . SENT In IN France NP , , Cr NP dit NP National NP absorbed VVD Banque NP fran NP aise NP du NP commerce NN ext NN rieur NN to TO create VV Natexis NP , , subsequently RB acquired VVN by IN Banques NP Populaires NP , , a DT mutual JJ organization NN . SENT Cr NP dit NP Agricole NP , , another DT mutual JJ , , took VVD control NN of IN Banque NP Indosuez NP in IN 1996 CD and CC acquired VVD 70 CD per IN cent NN of IN the DT consumer NN credit NN specialist NN Sofinco NP . SENT Following VVG the DT failure NN of IN its PP$ three CD way NN merger NN plan NN with IN Soci NN t NN G NP n NN rale NN SocGen NP and CC Paribas NP , , BNP NP finally RB succeeded VVD in IN acquiring VVG the DT latter NN in IN August NP 1999 CD , , creating VVG a DT bank NN with IN over IN 76 CD , , 000 CD employees NNS . SENT Soon RB after RB , , SocGen NP also RB acquired VVD control NN of IN Bulgaria NP s PP Expressbank NP , , itself PP the DT result NN of IN a DT 1993 CD merger NN of IN a DT dozen NN small JJ regional JJ banks NNS . SENT UBS NP , , formed VVN after IN the DT merger NN between IN Union NP de NP Banques NP Suisses NNS and CC Soci NN t NN de NP Banque NP Suisse NP continues VVZ to TO face VV integration NN problems NNS . SENT The DT bank NN s PP share NN price NN has VHZ yet RB to TO recover VV since IN the DT 1998 CD merger NN and CC there EX is VBZ speculation NN that IN despite IN its PP$ massive JJ size NN over IN 983 CD billion CD in IN private JJ banking NN funds NNS under IN management NN it PP could MD itself PP become VV an DT acquisition NN target NN . SENT The DT bank NN is VBZ nevertheless RB reorganizing VVG its PP$ business NN groups NNS again RB , , and CC has VHZ purchased VVN the DT fourth JJ largest JJS retail JJ broker NN in IN the DT United NP States NPS , , PaineWebber NP 485 CD billion CD in IN assets NNS under IN management NN , , specializing VVG in IN asset NN management NN for IN the DT very RB rich JJ . SENT Following VVG the DT 11 CD . SENT 7 CD billion CD purchase NN for IN a DT premium NN of IN 47 CD per IN cent NN over IN the DT acquired VVN company NN s PP share VV price NN its PP$ share NN price NN tumbled VVD more JJR than IN 11 CD per IN cent NN on IN concerns NNS it PP had VHD overpaid VVN . SENT Shortly RB after IN the DT PaineWebber NP takeover NN , , UBS NP s PP Swiss JJ rival NN , , Cr NP dit NP Suisse NP , , acquired VVD Donaldson NP , , Lufkin NP Jenrette NP DLJ NP , , another DT American JJ investment NN bank NN , , for IN 12 CD billion CD . SENT Observers NNS believe VVP that IN these DT deals NNS are VBP likely JJ to TO set VV off RP yet RB more JJR M NP As IN . SENT Axa NP , , the DT French JJ insurer NN that WDT had VHD been VBN DLJ NP s PP main JJ shareholder NN , , is VBZ expected VVN to TO use VV the DT proceeds NNS from IN the DT deal NN to TO acquire VV the DT 40 CD per IN cent NN of IN its PP$ American JJ financial JJ arm NN Axa NP Financial NP that IN it PP did VVD not RB already RB own JJ . SENT A DT combination NN of IN the DT new JJ acquisition NN and CC Credit NP Suisse NP First NP Boston NP or CC CSFB NP the DT product NN of IN an DT earlier JJR acquisition NN creates VVZ a DT powerful JJ competitive JJ platform NN in IN every DT profitable JJ area NN of IN investment NN banking NN , , from IN underwriting NN to TO advising VVG on IN mergers NNS . SENT 39 CD DLJ NP is VBZ a DT veritable JJ history NN of IN M NP As RB . SENT it PP first RB went VVD public JJ in IN 1970 CD , , sold VVD itself PP off RP again RB in IN the DT mid JJ 1980 CD s NN to TO Equitable NP Life NP , , a DT British JJ insurance NN company NN , , and CC then RB went VVD public JJ again RB in IN 1995 CD . SENT Shareholders NNS expect VVP huge JJ gains NNS from IN the DT merger NN price NN , , which WDT is VBZ three CD times NNS book NN value NN . SENT Outside IN Scandinavia NP , , branch NN and CC staff NN rationalization NN in IN Europe NP has VHZ been VBN most RBS extensive JJ in IN the DT United NP Kingdom NP . SENT By IN 1998 CD , , the DT number NN of IN branches NNS had VHD declined VVN to TO less JJR than IN 10 CD , , 000 CD from IN a DT high NN of IN 14 CD , , 000 CD in IN 1985 CD . SENT The DT City NP of IN London NP recorded VVD the DT highest JJS number NN of IN , , and CC some DT of IN the DT largest JJS , , M NP As IN in IN Europe NP in IN the DT 1990 CD s PP , , including VVG the DT recent JJ hostile JJ takeover NN of IN NatWest NP by IN the DT much RB smaller JJR RBS NP . SENT This DT last JJ acquisition NN involved VVD a DT highly RB acrimonious JJ three CD way NN confrontation NN pitting VVG NatWest NP against IN RBS NP and CC Bank NP of IN Scotland NP BoS NP . SENT Important JJ factors NNS in IN RBS NP s PP success NN were VBD its PP$ pledge NN to TO cut VV costs NNS by IN more JJR than IN 1 CD billion CD , , mostly RB by IN eliminating VVG 18 CD , , 000 CD jobs NNS , , and CC substantial JJ support NN from IN other JJ financial JJ institutions NNS , , such JJ as IN Spain NP s PP BSCH NP . SENT Given VVN a DT more RBR extensive JJ market NN overlap VVP with IN NatWest NP , , RBS NP convinced VVD its PP$ shareholders NNS that IN potential NN for IN job NN reductions NNS , , and CC thus RB synergy NN , , was VBD much RB greater JJR than IN would MD be VB for IN BoS NP . SENT The DT immediate JJ trigger NN for IN NatWest NP s PP loss NN of IN independence NN was VBD its PP$ attempt NN to TO acquire VV Legal NP General NP when WRB the DT financial JJ markets NNS viewed VVN NatWest NP as IN an DT industry NN laggard NN in IN returns NNS on IN shareholders NNS equity NN . SENT In IN current JJ market NN conditions NNS , , all DT British JJ financial JJ institutions NNS are VBP considered VVN either CC potential JJ takeover NN prey NN or CC predators NNS . SENT Almost RB all RB of IN the DT United NP Kingdom NP s PP prestigious JJ merchant NN banks NNS Warburg NP , , Barings NP , , Kleinwort NP Benson NP and CC Morgan NP Grenfell NP have VHP passed VVN to TO foreign JJ banking NN groups NNS . SENT Other JJ notable JJ M NP A NP operations NNS involving VVG British JJ companies NNS include VVP the DT 1999 CD acquisition NN of IN Scottish NP Widows NP , , an DT insurance NN company NN , , by IN Lloyds NP TSB NP and CC the DT 2000 CD acquisition NN of IN Cr NP dit NP Commercial NP de NP France NP CCF NN by IN HSBC NP . SENT This DT acquisition NN is VBZ not RB expected VVN to TO involve VV retrenchments NNS , , as IN the DT French JJ Labour NN Code NP 40 CD guarantees NNS workers NNS contracts NNS even RB in IN the DT event NN of IN changes NNS in IN the DT employer NN s PP legal JJ status NN especially RB involving VVG mergers NNS , , sales NNS and CC recapitalization NN and CC the DT management NN of IN staff NN reductions NNS should MD be VB facilitated VVN by IN the DT age NN structure NN of IN bank NN employees NNS . SENT In IN August NP 2000 CD Barclays NP also RB announced VVD a DT takeover NN of IN Woolwich NP in IN a DT 5 CD . SENT 4 CD billion CD deal NN , , with IN the DT firm NN becoming VVG the DT mortgage NN arm NN of IN the DT Barclays NP Group NP . SENT The DT acquisition NN is VBZ projected VVN to TO involve VV at IN least JJS 1 CD , , 000 CD job NN losses NNS of IN the DT combined JJ company NN s VVZ 56 CD , , 000 CD posts NNS spread VVN across IN 2 CD , , 100 CD branches NNS . SENT Job NN losses NNS will MD mostly RB come VV from IN integrating VVG back JJ office NN infrastructure NN and CC streamlining VVG management NN structures NNS , , accounts NNS administration NN and CC other JJ financial JJ dealings NNS . SENT Where WRB the DT networks NNS overlap VVP , , the DT new JJ group NN will MD combine VV 200 CD branches NNS , , effectively RB closing VVG half NN of IN them PP . SENT Barclays NP recently RB closed VVD 171 CD branches NNS , , many JJ in IN rural JJ areas NNS , , with IN the DT loss NN of IN 7 CD , , 500 CD jobs NNS in IN one CD day NN . SENT The DT job NN losses NNS at IN Barclays NP are VBP representative JJ of IN a DT trend NN which WDT has VHZ seen VVN the DT number NN of IN staff NN in IN major JJ British JJ banks NNS peaking VVG at IN 444 CD , , 000 CD in IN 1990 CD , , then RB beginning VVG a DT sustained JJ decline NN to TO 430 CD , , 000 CD in IN 1991 CD , , 382 CD , , 000 CD in IN 1993 CD and CC 363 CD , , 000 CD in IN 1995 CD . SENT It PP is VBZ estimated VVN that IN between IN 1990 CD and CC 2000 CD , , British JJ banks NNS reduced VVD their PP$ employees NNS by IN 150 CD , , 000 CD and CC shut VVD a DT quarter NN of IN their PP$ total JJ network NN of IN branches NNS over IN 4000 CD . SENT M NP As RB tend VVP to TO accelerate VV the DT introduction NN of IN innovative JJ technologies NNS in IN financial JJ service NN firms NNS . SENT According VVG to TO trade VV unions NNS , , each DT telephone NN banking NN job NN destroys VVZ the DT equivalent NN of IN 1 CD . SENT 4 CD to TO 1 CD . SENT 7 CD branch NN positions NNS within IN two CD years NNS . SENT The DT British JJ trade NN union NN MSF NP classes NNS 1999 CD as IN a DT peak NN for IN announcements NNS of IN mass NN lay VVD offs NNS resulting VVG from IN restructuring NN or CC M NP As RB . SENT A DT total NN of IN 18 CD , , 000 CD banking NN posts NNS were VBD eliminated VVN , , partly RB as IN a DT result NN of IN a DT 15 CD per IN cent NN cost NN reduction NN programme NN in IN merged JJ Lloyds NP TSB NP and CC partly RB in IN NatWest NP after IN its PP$ acquisition NN by IN RBS NP . SENT The DT announcement NN of IN 3 CD , , 000 CD job NN cuts NNS following VVG the DT merger NN between IN Commercial NP Union NP and CC General NP Accident NP to TO form VV CGU NP illustrates VVZ the DT type NN of IN change NN that WDT is VBZ under IN way NN in IN the DT sector NN and CC the DT relationship NN between IN mergers NNS and CC employment NN trends NNS . SENT Since IN the DT 1995 CD merger NN , , Lloyds NP TSB NP has VHZ eliminated VVN 16 CD , , 021 CD posts NNS , , 4 CD , , 823 CD by IN spinning VVG off RP activities NNS . SENT By IN 1999 CD , , the DT new JJ banking NN group NN had VHD achieved VVN its PP$ cost NN cutting VVG objectives NNS in IN such JJ centralized JJ functions NNS as IN treasury NN , , cheque NN processing NN and CC rationalization NN in IN call NN centres NNS and CC had VHD closed VVN 300 CD branches NNS as IN part NN of IN its PP$ goal NN to TO cut VV costs NNS by IN 10 CD per IN cent NN and CC double JJ shareholder NN value NN every DT three CD years NNS , , resulting VVG in IN 12 CD per IN cent NN staff NN reductions NNS . SENT The DT stated JJ aim NN of IN M NP As IN in IN retail JJ financial JJ services NNS is VBZ to TO extract VV cost NN savings NNS and CC the DT most RBS effective JJ way NN to TO achieve VV this DT is VBZ through IN branch NN closures NNS which WDT allow VVP companies NNS to TO save VV costs NNS associated VVN with IN staff NN , , premises NNS and CC equipment NN . SENT Since IN the DT 1980 CD s PP , , financial JJ services NNS providers NNS have VHP embarked VVN on IN a DT vast JJ programme NN of IN branch NN closure NN , , with IN British JJ banks NNS and CC building NN societies NNS closing VVG 20 CD per IN cent NN of IN their PP$ branches NNS between IN 1989 CD and CC 1995 CD . SENT While IN these DT closures NNS were VBD unrelated JJ to TO M NP As RB , , mergers NNS tend VVP to TO accelerate VV closure NN programmes NNS . SENT A DT reverse JJ phenomenon NN has VHZ also RB been VBN observed VVN . SENT For IN example NN , , before IN Midland NP Bank NP s PP acquisition NN by IN HSBC NP , , it PP had VHD started VVN a DT vast JJ branch NN closure NN programme NN in IN the DT late JJ 1980 CD s PP , , essentially RB due JJ to TO serious JJ financial JJ difficulties NNS . SENT Following VVG the DT takeover NN and CC resolution NN of IN those DT difficulties NNS in IN the DT early JJ 1990 CD s PP , , the DT draconian JJ reduction NN in IN the DT bank NN s PP branch NN network NN stopped VVD . SENT 41 CD Throughout IN Europe NP the DT insurance NN industry NN is VBZ undergoing VVG similar JJ turbulent JJ restructuring NN and CC consolidation NN with IN the DT pressure NN to TO consolidate VV coming VVG from IN various JJ sources NNS . SENT Private JJ savings NNS and CC pension NN plans NNS are VBP expected VVN to TO grow VV rapidly RB as IN governments NNS in IN Europe NP shift VVP more JJR of IN their PP$ pensions NNS responsibilities NNS from IN the DT State NN to TO the DT private JJ sector NN . SENT Pressure NN from IN dissident JJ carpetbagger NN policyholders NNS is VBZ also RB growing VVG on IN insurers NNS to TO abandon VV their PP$ mutual JJ status NN , , unwind VV reserve NN positions NNS , , pay VV out RP profits NNS to TO members NNS , , and CC list NN publicly RB to TO add VV new JJ sources NNS of IN equity NN capital NN , , pointing VVG towards IN further JJR consolidation NN . SENT According VVG to TO one CD source NN , , 42 CD three CD global JJ brokers NNS Marsh NP McLennan NP , , Aon NP and CC Willis NP Corroon NP came VVD to TO dominate VV the DT markets NNS over IN the DT 1990 CD s PP . SENT The DT traditional JJ function NN of IN brokers NNS is VBZ to TO find VV insurance NN for IN corporate JJ clients NNS , , negotiating VVG the DT price NN and CC scope NN of IN coverage NN and CC to TO advise VV on IN the DT design NN of IN risk NN programmes NNS . SENT Most JJS make VVP their PP$ money NN on IN commissions NNS from IN insurers NNS on IN client NN premiums NNS . SENT In IN American NP , , British NP and CC some DT relatively RB deregulated VVN European JJ markets NNS , , brokers NNS dominate VVP the DT distribution NN of IN commercial JJ insurance NN and CC influence NN choices NNS and CC terms NNS . SENT They PP have VHP begun VVN to TO gain VV a DT market NN share NN in IN deregulating VVG markets NNS such JJ as IN Italy NP , , Spain NP and CC Latin NP America NP . SENT In IN 1989 CD the DT proportion NN of IN worldwide JJ revenue NN generated VVN by IN the DT top JJ five CD brokers NNS was VBD about RB two CD thirds NNS of IN the DT market NN . SENT by IN 1997 CD , , it PP was VBD nine CD tenths NNS , , with IN the DT three CD global JJ firms NNS accounting VVG for IN more JJR than IN 80 CD per IN cent NN . SENT Brokers NNS clout NN has VHZ helped VVN drive VV down RP insurance NN prices NNS , , benefiting VVG corporate JJ clients NNS but CC squeezing VVG insurers NNS profit NN margins NNS . SENT Market NN deregulation NN in IN many JJ markets NNS , , such JJ as IN the DT EU NP and CC Japan NP , , has VHZ also RB increased VVN competition NN among IN insurers NNS and CC exerted VVN further JJR downward JJ price NN pressure NN . SENT Investment NN bankers NNS , , Internet NN companies NNS offering VVG financial JJ services NNS , , and CC specialist NN risk NN consultants NNS , , etc FW . SENT , , have VHP entered VVN the DT market NN , , reinforcing VVG competition NN . SENT Consolidation NN already RB driven VVN by IN overcapacity NN and CC slow JJ growth NN has VHZ accelerated VVN as IN insurers NNS counter VVP the DT power NN of IN global JJ brokers NNS , , becoming VVG either DT very RB large JJ to TO gain VV leverage NN , , or CC specialized VVN to TO be VB category NN killers NNS in IN their PP$ niche NN . SENT Many JJ have VHP opted VVN for IN size NN mergers NNS among IN British JJ insurers NNS have VHP followed VVN the DT rapid JJ consolidation NN of IN brokers NNS , , including VVG Royal NP and CC Sun NP Alliance NP , , Commercial NP Union NP and CC General NP Accident NP , , Zurich NP UK NP and CC Eagle NP Star NP , , and CC Norwich NP Union NP and CC London NP Edinburgh NP . SENT There EX is VBZ a DT trend NN among IN insurers NNS to TO forward RB integrate VV by IN taking VVG stakes NNS in IN distributors NNS . SENT A DT group NN of IN American JJ and CC British JJ insurers NNS has VHZ bought VVN part NN of IN Willis NP Corroon NP . SENT a DT consortium NN of IN American JJ institutions NNS , , including VVG insurers NNS , , has VHZ invested VVN in IN the DT broker NN USI NP . SENT and CC XL NP Capital NP proposed VVD an DT investment NN eventually RB not RB made VVN in IN wholesale JJ broker NN Tri NP City NP . SENT For IN a DT scale NN based VVN strategy NN to TO succeed VV , , insurers NNS need VVP critical JJ mass NN in IN all PDT their PP$ key JJ markets NNS . SENT Consolidation NN is VBZ spreading VVG from IN in IN market NN tie NN ups NNS , , now RB almost RB complete JJ , , to TO cross VV border NN ones NNS , , particularly RB in IN Europe NP as IN the DT Single NP Market NP draws VVZ nearer JJR for IN example NN , , between IN Allianz NP and CC AGF NP , , Generali NP and CC AMB NP , , and CC Axa NP Group NP and CC Guardian NP Royal NP Exchange NP . SENT This DT is VBZ leading VVG towards IN truly RB multinational JJ operations NNS serving VVG global JJ clients NNS , , developing VVG global JJ brands NNS and CC helping VVG in IN the DT acquisition NN and CC retention NN of IN customers NNS , , generating VVG economies NNS and CC skills NNS in IN specialist NN areas NNS and CC limiting VVG the DT global JJ brokers NNS ability NN to TO negotiate VV terms NNS . SENT Should MD these DT opportunities NNS not RB be VB properly RB exploited VVN , , the DT scale NN players NNS could MD be VB left VVN with IN unwieldy JJ structures NNS that WDT destroy VVP shareholder NN value NN . SENT The DT Spanish JJ insurance NN industry NN is VBZ consolidating VVG radically RB , , driven VVN on IN the DT one CD hand NN by IN legislation NN on IN the DT regulation NN and CC supervision NN of IN private JJ insurance NN which WDT requires VVZ a DT significant JJ increase NN in IN the DT level NN of IN nominal JJ capital NN a DT company NN must MD have VH to TO operate VV in IN the DT various JJ branches NNS of IN the DT insurance NN industry NN and CC , , on IN the DT other JJ , , the DT establishment NN of IN a DT single JJ European JJ market NN , , which WDT has VHZ inspired VVN multinationals NNS to TO strive VV for IN the DT requisite JJ size NN to TO enable VV them PP to TO compete VV in IN a DT suddenly RB enlarged JJ home NN market NN , , with IN the DT greatest JJS employment NN impact NN . SENT A DT single JJ merger NN or CC acquisition NN often RB seems VVZ to TO trigger VV ripple JJ effects NNS , , as IN competitors NNS reposition VV themselves PP to TO avoid VV becoming VVG losers NNS in IN a DT high JJ stakes NNS contest NN . SENT acquire VV or CC be VB acquired VVN . SENT Another DT marriage NN intended VVD to TO create VV a DT British JJ market NN leader NN , , with IN a DT market NN value NN of IN 19 CD billion CD , , involved VVN CGU NP and CC Norwich NP Union NP . SENT Despite IN its PP$ growth NN objectives NNS , , 5 CD , , 000 CD job NN cuts NNS are VBP planned VVN over IN 18 CD months NNS for IN its PP$ combined JJ worldwide JJ 69 CD , , 000 CD employees NNS , , to TO generate VV 250 CD million CD annual JJ pre NP tax NN cost NN savings NNS . SENT CGU NN is VBZ itself PP the DT product NN of IN a DT 1998 CD merger NN between IN Commercial NP Union NP and CC General NP Accident NP , , which WDT involved VVD the DT loss NN of IN 6 CD , , 000 CD jobs NNS . SENT Norwich NP Union NP had VHD been VBN seen VVN as IN a DT takeover NN target NN since IN it PP demutualized VVD and CC floated VVD in IN 1997 CD , , but CC its PP$ strong JJ share NN price NN had VHD deterred VVD potential JJ acquirers NNS . SENT The DT combined JJ company NN , , CGNU NP , , expects VVZ to TO strengthen VV its PP$ presence NN in IN fast RB growing VVG long JJ term NN savings NNS markets NNS in IN Ireland NP , , Spain NP and CC Italy NP , , using VVG CGU NP s PP life NN operation NN in IN Germany NP as IN a DT platform NN with IN significant JJ growth NN potential NN . SENT CGNU NP will MD also RB operate VV in IN the DT emerging VVG markets NNS of IN Central NP and CC Eastern NP Europe NP . SENT The DT 1999 CD acquisition NN of IN Nuts NNS Ohra NP had VHD already RB improved VVN the DT position NN of IN Delta NP Lloyd NP , , CGU NP s PP Dutch JJ subsidiary NN and CC an DT earlier JJR acquisition NN . SENT Holders NNS and CC speculators NNS purchasing VVG Norwich NP Union NP stock NN before IN the DT merger NN announcement NN were VBD disappointed VVN by IN the DT absence NN of IN a DT merger NN premium NN , , especially RB as IN the DT merger NN was VBD defensive JJ to TO prevent VV both DT companies NNS becoming VVG involuntary JJ takeover NN targets NNS . SENT Jumping VVG into IN the DT European JJ insurance NN super JJ league NN at IN number NN five CD , , the DT new JJ company NN hoped VVN to TO become VV a DT hunter NN , , rather RB than IN prey NN , , and CC to TO overcome VV the DT legacy NN of IN crises NNS involving VVG mortgage NN indemnity NN policies NNS , , pensions NNS misselling NN and CC guaranteed JJ annuities NNS that WDT have VHP hit VVN the DT British JJ market NN recently RB . SENT Investment NN bank NN analysts NNS had VHD vainly RB tried VVN to TO promote VV rival JJ bids NNS from IN Allianz NP , , Dutch JJ insurer NN Aegon NP and CC Generali NP of IN Italy NP , , among IN others NNS , , all DT of IN whom WP usually RB prefer VVP agreed VVN to TO hostile JJ deals NNS . SENT Scale NN has VHZ become VVN crucial JJ for IN insurance NN companies NNS in IN home NN markets NNS . SENT Insurers NNS employ VVP thousands NNS of IN people NNS to TO collect VV premiums NNS and CC process NN claims NNS . SENT Like IN banks NNS they PP are VBP vulnerable JJ to TO competition NN from IN new JJ , , Internet NN based VVN operations NNS unburdened VVN with IN their PP$ historic JJ cost NN base NN . SENT British JJ insurers NNS face VVP additional JJ challenges NNS in IN adapting VVG to TO government NN plans NNS for IN stakeholder NN pensions NNS which WDT authorize VV annual JJ management NN charges NNS capped VVN at IN 1 CD per IN cent NN of IN funds NNS under IN management NN and CC which WDT yield VVP poor JJ profit NN margins NNS . SENT Analysts NNS judge VVP that IN of IN over IN 70 CD British JJ life NN groups NNS , , only RB CGNU NP , , Prudential NP , , Legal NP General NP , , Standard NP Life NP , , Axa NP and CC Scottish NP Widows NP enjoy VVP scale NN capacities NNS to TO compete VV in IN this DT market NN . SENT The DT current JJ merger NN wave NN in IN insurance NN is VBZ truly RB pan VV European JJ , , whittling VVG down RP the DT continent NN s PP estimated VVD 5 CD , , 000 CD insurers NNS . SENT Two CD of IN the DT five CD largest JJS British JJ composite JJ insurers NNS are VBP already RB part NN of IN pan VV European JJ groups NNS . SENT The DT 3 CD . SENT 4 CD billion CD purchase NN of IN Guardian NP Royal NP Exchange NP by IN Axa NP in IN 1999 CD , , followed VVD Zurich NP s PP acquisition NN of IN BAT NN Industries NPS financial JJ services NNS arm NN including VVG Allied NP Dunbar NP to TO form VV Allied NP Zurich NP . SENT Europe NP s VVZ biggest JJS insurer NN , , Allianz NP , , acquired VVD AGF NP to TO secure VV a DT strong JJ market NN position NN in IN France NP and CC other JJ Euro NP zone NN countries NNS . SENT Allianz NP also RB owns VVZ Cornhill NP Insurance NP . SENT GE NP Capital NP , , the DT financial JJ services NNS subsidiary NN of IN General NP Electric NP , , consolidated VVD its PP$ European JJ consumer NN insurance NN and CC investment NN activities NNS into IN GE NP Insurance NP Holdings NPS . SENT The DT attempt NN at IN a DT hostile JJ melding NN into IN a DT national JJ champion NN of IN SocGen NP and CC Paribas NP by IN BNP NP , , backed VVN by IN Axa NP , , was VBD fended VVD off RP by IN SocGen NP thanks NNS to TO CGU NP support NN . SENT The DT two CD have VHP since RB been VBN in IN discussions NNS on IN cooperation NN to TO allow VV CGU NP to TO strengthen VV its PP$ position NN in IN French JJ long JJ term NN savings NNS . SENT However RB , , in IN their PP$ drive NN to TO cut VV costs NNS many JJ financial JJ institutions NNS may MD have VH seriously RB jeopardized VVN their PP$ operational JJ capacities NNS and CC thus RB set VV themselves PP up RP to TO destroy VV rather RB than IN create VV shareholder NN value NN . SENT Erosion NN in IN profitability NN could MD push VV the DT institutions NNS towards IN further JJR cost NN reductions NNS and CC a DT vicious JJ circle NN of IN erosion NN followed VVN by IN job NN cuts NNS , , with IN no DT end NN in IN sight NN . SENT Prudential NP has VHZ seen VVN its PP$ British JJ sales NNS fall VVP by IN 6 CD per IN cent NN to TO 461 CD million CD in IN 2000 CD , , mainly RB as IN a DT result NN of IN axing VVG large JJ chunks NNS of IN its PP$ sales NNS force NN 4 CD , , 000 CD employees NNS since IN 1998 CD to TO concentrate VV on IN sales NNS through IN independent JJ financial JJ advisers NNS . SENT sales NNS through IN both DT channels NNS fell VVD nevertheless RB . SENT A DT further JJR 1 CD , , 000 CD job NN cuts NNS are VBP planned VVN , , but CC the DT figure NN may MD increase VV should MD it PP acquire VV Equitable NP Life NP on IN the DT market NN after IN a DT High NP Court NP decision NN increased VVD its PP$ liabilities NNS to TO policyholders NNS in IN a DT misselling JJ case NN . SENT 43 CD United NP Assurance NP agreed VVD to TO a DT 1 CD . SENT 6 CD billion CD takeover NN by IN Royal NP London NP in IN February NP 2000 CD , , the DT largest JJS takeover NN in IN Britain NP of IN a DT listed VVN company NN by IN an DT unlisted JJ mutual JJ , , with IN plans NNS to TO cut VV jobs NNS in IN the DT combined JJ 6 CD , , 100 CD staff NN , , although IN exact JJ figures NNS have VHP not RB been VBN disclosed VVN . SENT United NP Assurance NP had VHD , , since IN its PP$ 1996 CD founding NN merger NN between IN United NP Friendly NP and CC Refuge NP Assurance NP , , suffered VVD a DT 26 CD per IN cent NN drop NN in IN sales NNS in IN 1997 CD and CC a DT further JJR 9 CD per IN cent NN drop NN in IN 1998 CD . SENT It PP had VHD shed VVN 1 CD , , 200 CD jobs NNS with IN the DT merger NN , , mainly RB by IN withdrawing VVG from IN its PP$ industrial JJ branch NN business NN , , where WRB it PP collected VVD cash NN from IN customers NNS door NN to TO door NN and CC ceasing VVG to TO underwrite VV general JJ insurance NN . SENT Banking NN consolidation NN in IN the DT Nordic JJ countries NNS continues VVZ , , as RB witnessed VVN by IN the DT pending VVG acquisition NN of IN Norway NP s PP Christiania NP 4 CD , , 000 CD staff NN by IN Swedish JJ Finnish JJ MeritaNordbanken NP . SENT The DT combined JJ entity NN would MD become VV the DT region NN s VVZ largest JJS , , with IN 7 CD million CD customers NNS and CC 900 CD branches NNS in IN seven CD countries NNS . SENT M NP A DT activity NN in IN insurance NN is VBZ also RB vigorous JJ , , notably RB with IN the DT recent JJ merger NN of IN the DT non JJ life NN operations NNS of IN Sweden NP s PP Skandia NP Storebrand NP and CC the DT Finnish JJ Norwegian JJ Pohjola NP to TO create VV a DT Pan NP Nordic NN giant NN . SENT Codan NP of IN Denmark NP recently RB purchased VVD SEB NP s PP non JJ life NN insurance NN business NN . SENT A DT distinct JJ feature NN of IN Nordic JJ M NP As RB is VBZ that IN all PDT the DT region NN s PP leading VVG banks NNS now RB define VV their PP$ strategies NNS in IN pan VV Nordic JJ terms NNS . SENT Handelsbanken NP has VHZ built VVN up RP a DT significant JJ presence NN in IN Finland NP and CC Norway NP , , while IN Den NP Danske NP has VHZ made VVN big JJ purchases NNS in IN Sweden NP and CC Norway NP . SENT The DT decline NN in IN bank NN personnel NNS and CC branches NNS between IN 1995 CD and CC 1999 CD averaged VVD 30 CD per IN cent NN , , with IN a DT 50 CD per IN cent NN fall NN for IN Finland NP . SENT Overall RB , , bank NN analysts NNS estimate VVP potential JJ efficiency NN improvements NNS of IN 20 CD to TO 30 CD per IN cent NN in IN Europe NP should MD consolidation NN parallel NN that IN of IN the DT Nordic JJ countries NNS . SENT Current JJ overcapacity NN and CC efficiency NN are VBP comparable JJ to TO those DT seen VVN in IN Scandinavia NP in IN 1990 CD and CC , , although IN this DT scenario NN for IN reductions NNS in IN the DT branch NN and CC staff NN numbers NNS of IN EU NP banks NNS may MD seem VV dramatic JJ , , deeper JJR cuts NNS may MD occur VV if IN technology NN is VBZ adopted VVN rapidly RB and CC the DT recent JJ merger NN wave NN continues VVZ or CC possibly RB even RB gains VVZ speed NN . SENT In IN Norway NP , , the DT 1999 CD merger NN between IN Den NP Norske NP Bank NP , , the DT country NN s PP premier JJ bank NN and CC Postbanken NP , , its PP$ fourth JJ largest JJS , , created VVN Norway NP s VVZ largest JJS financial JJ organization NN which WDT employs VVZ 7 CD , , 500 CD workers NNS . SENT The DT resulting VVG 400 CD job NN cuts NNS were VBD expected VVN to TO correspond VV to TO voluntary JJ departures NNS . SENT Job NN losses NNS in IN Denmark NP s PP banking VVG sector NN in IN the DT 1990 CD s PP were VBD substantial JJ , , with IN the DT number NN of IN banking NN employees NNS falling VVG from IN 51 CD , , 000 CD in IN 1991 CD to TO 43 CD , , 000 CD by IN 1995 CD . SENT this DT reduction NN coincided VVD with IN declining VVG numbers NNS of IN financial JJ establishments NNS attributable JJ to TO M NP A DT related JJ activity NN . SENT Three CD large JJ banks NNS Den NP Danske NP Bank NP , , BG NP Bank NP and CC Unibank NP the DT product NN of IN a DT merger NN between IN Bikuben NP and CC Girobank NP controlled VVD 85 CD per IN cent NN of IN the DT market NN . SENT Very RB rapid JJ development NN in IN telephone NN banking NN and CC in IN store NN and CC highly RB specialized JJ financial JJ institutions NNS constituted VVD another DT specific JJ facet NN . SENT Denmark NP had VHD no DT ownership NN restrictions NNS between IN banks NNS and CC insurance NN companies NNS , , which WDT encouraged VVD the DT development NN of IN bancassurance NN companies NNS such JJ as IN Skandia NP . SENT Financial JJ sector NN consolidation NN in IN Denmark NP between IN 1990 CD and CC 1995 CD involved VVD a DT 20 CD per IN cent NN reduction NN in IN all DT staff NN . SENT Comparable JJ consolidation NN occurred VVD in IN Finland NP , , where WRB the DT number NN of IN credit NN institutions NNS declined VVD by IN over IN a DT third JJ between IN 1989 CD and CC 1995 CD and CC the DT branch NN network NN shrank VVD from IN 3 CD , , 500 CD to TO 1 CD , , 950 CD , , with IN employment NN figures NNS falling VVG from IN 53 CD , , 000 CD to TO 31 CD , , 200 CD . SENT By IN 1995 CD , , three CD groups NNS controlled VVD an DT overwhelming JJ share NN 92 CD . SENT 5 CD per IN cent NN of IN the DT Finnish JJ deposit NN and CC loan NN market NN . SENT MeritaBank NP , , the DT result NN of IN the DT merger NN between IN Kansallis NP Osake NP Pankki NP and CC Union NP Bank NP of IN Finland NP , , previously RB Finland NP s PP principal JJ banks NNS . SENT Okobank NN cooperative NN . SENT and CC Postipankki NP , , the DT postal JJ services NNS bank NN . SENT In IN 1990 CD , , the DT Swedish JJ banking NN market NN was VBD highly RB concentrated VVN four CD large JJ institutions NNS , , including VVG the DT two CD state NN owned VVD banks NNS Nordbanken NP and CC Gota NP Bank NP which WDT merged VVD in IN 1993 CD after IN substantial JJ recapitalization NN by IN the DT State NP , , shared VVD 85 CD 90 CD per IN cent NN of IN the DT market NN . SENT Table NN 3 CD . SENT 5 CD shows NNS sweeping JJ consolidation NN , , especially RB in IN Sweden NP . SENT Finland NP s PP high JJ score NN relates VVZ to TO the DT presence NN of IN over IN 300 CD cooperative JJ banks NNS . SENT The DT Nordic JJ banking NN market NN has VHZ become VVN highly RB concentrated JJ , , with IN three CD banks NNS alone RB accounting VVG for IN between IN 70 CD and CC 80 CD per IN cent NN of IN bank NN assets NNS . SENT Table NN 3 CD . SENT 5 CD . SENT Number NN of IN banks NNS in IN Nordic JJ countries NNS , , 1985 CD and CC 1998 CD Country NN 1985 CD 1998 CD Finland NN 654 CD 359 CD Denmark NP 166 CD 105 CD Norway NP 150 CD 100 CD Sweden NP 543 CD 121 CD Total JJ 1 CD 513 CD 685 CD Source NN . SENT H NP . SENT Koskenkyl NP . SENT Threats NNS and CC opportunities NNS for IN today NN s PP European JJ banks NNS Bank NP of IN Finland NP , , 2000 CD , , paper NN submitted VVD to TO the DT Institute NP of IN Economic NP Affairs NPS Conference NP on IN European NP Retail NP Banking NP , , Geneva NP , , 22 CD 23 CD Feb NN . SENT 2000 CD . SENT Central NP and CC Eastern NP Europe NP The DT consolidation NN and CC transformation NN of IN the DT banking NN sector NN in IN Central NP and CC Eastern NP Europe NP are VBP continuing VVG in IN line NN with IN economic JJ changes NNS . SENT Developments NNS in IN the DT Czech NP Republic NP are VBP representative JJ of IN trends NNS in IN M NP As IN and CC their PP$ employment NN impact NN in IN the DT region NN . SENT Following VVG the DT move NN from IN centrally RB planned VVN to TO free VV market NN economies NNS , , the DT demand NN for IN banking NN services NNS increased VVD , , with IN impressive JJ growth NN in IN the DT number NN of IN small JJ banks NNS and CC bank NN employees NNS for IN example NN , , 30 CD per IN cent NN growth NN between IN 1992 CD and CC 1993 CD in IN bank NN employees NNS and CC a DT ratio NN of IN employees NNS to TO the DT general JJ population NN of IN around IN 1 CD . SENT 190 CD throughout IN the DT 1990 CD s PP . SENT Such JJ sudden JJ expansion NN posed VVD serious JJ problems NNS for IN the DT sector NN as IN a DT whole NN . SENT The DT majority NN of IN Czech JJ banks NNS , , especially RB those DT established VVN during IN this DT period NN of IN rapid JJ economic JJ transformation NN , , had VHD weak JJ and CC inexperienced JJ management NN and CC staff NN many RB took VVD on IN risky JJ low JJ quality NN asset NN portfolios NNS and CC some DT were VBD unable JJ to TO cope VV with IN the DT strong JJ competition NN and CC risky JJ conditions NNS associated VVN with IN economic JJ transformation NN . SENT With IN a DT downturn NN in IN the DT economy NN , , long JJ term NN performance NN problems NNS led VVN to TO liquidity NN problems NNS and CC insolvency NN , , prompting VVG bank NN regulators NNS to TO force VV them PP into IN liquidation NN or CC mergers NNS with IN stronger JJR institutions NNS . SENT This DT was VBD aggravated VVN by IN a DT currency NN crisis NN , , increased VVD interest NN rates NNS and CC a DT general JJ liquidity NN squeeze NN in IN 1997 CD , , which WDT pushed VVD the DT economy NN into IN recession NN , , turning VVG previously RB sound JJ loans NNS into IN non JJ performing VVG assets NNS and CC pushing VVG small JJ , , weak JJ banks NNS into IN insolvency NN or CC deeper JJR distress NN . SENT The DT tightening NN of IN conditions NNS to TO establish VV new JJ banks NNS restricted VVN new JJ entrants NNS , , particularly RB after IN 1996 CD . SENT Between IN 1989 CD and CC December NP 1999 CD , , 63 CD banking NN licences NNS were VBD granted VVN and CC 20 CD revoked VVN 16 CD because IN of IN the DT banks NNS poor JJ financial JJ situation NN and CC failure NN to TO meet VV the DT prudential JJ rules NNS , , three CD due JJ to TO mergers NNS and CC one CD because IN the DT bank NN did VVD not RB start VV operations NNS within IN the DT legal JJ period NN . SENT In IN 1998 CD several JJ foreign JJ bank NN subsidiaries NNS operating VVG in IN the DT country NN were VBD merged VVN following VVG amalgamations NNS of IN parent NN banks NNS see VVP box NN 3 CD . SENT 2 LS . SENT one CD new JJ banking NN licence NN was VBD granted VVN to TO GE NP Capital NP Bank NP , , which WDT took VVD over IN part NN of IN Agrobanka NP . SENT Together RB with IN the DT increased JJ use NN of IN labour NN saving VVG technologies NNS , , these DT developments NNS affected VVD the DT number NN of IN bank NN branches NNS and CC employees NNS . SENT Following VVG growth NN in IN the DT number NN of IN banks NNS as IN a DT result NN of IN liberalization NN , , the DT sector NN entered VVD harsh JJ consolidation NN starting VVG in IN 1994 CD , , accentuated VVN by IN the DT increasing VVG penetration NN of IN international JJ financial JJ institutions NNS . SENT In IN December NP 1999 CD , , there EX were VBD 42 CD banks NNS and CC foreign JJ bank NN subsidiaries NNS operating VVG in IN the DT banking NN sector NN three CD less JJR than IN in IN 1998 CD following VVG the DT closure NN of IN Universal NP banka NP and CC Moravia NP banka NP , , their PP$ licences NNS revoked VVN after IN failing VVG to TO meet VV prudential JJ regulations NNS . SENT eight CD less JJR than IN in IN 1997 CD , , because RB of IN the DT closure NN of IN troubled JJ small JJ banks NNS , , the DT sale NN of IN local JJ firms NNS to TO foreign JJ investors NNS and CC mergers NNS of IN foreign JJ banks NNS parent NN companies NNS . SENT In IN 1999 CD the DT credit NN crunch NN continued VVD , , leading VVG to TO further JJR deterioration NN of IN the DT sector NN and CC the DT overall JJ share NN of IN bad JJ loans NNS kept VVD increasing VVG , , as IN businesses NNS increasingly RB suffered VVD from IN deep JJ recession NN and CC high JJ real JJ interest NN rates NNS . SENT 44 CD Box NP 3 CD . SENT 2 LS . SENT Major JJ mergers NNS and CC acquisitions NNS in IN the DT banking NN sector NN of IN the DT Czech JJ Republic NP Mergers NP Postovni NP banka NP merged VVD with IN Investicni NP banka NP to TO form VV Investicni NP a DT postovni NN banka NP 1994 CD . SENT Bank NP Austria NP and CC Creditanstalt NP merged VVD as IN BankAustria NP Creditanstalt NP Czech NP Republic NP 1998 CD . SENT HYPO NN BANK NP and CC Vereinsbank NP merged VVD as IN HypoVereinsbank NP CZ NP 1998 CD . SENT Acquisitions NNS The DT Czech NP Government NP sold VVD its PP$ stake NN in IN . SENT Investicni NP a DT postovni NN banka NN 49 CD to TO Japan NP s PP Nomura NP 1998 CD . SENT Ceskoslovenska NP obchodni NP banka NP 65 CD , , 7 CD to TO Belgium NP s PP KBC NP bank NN 1999 CD . SENT Ceska NP sporitelna NP 45 CD to TO Austrian NP Erste NP Bank NP Sparkassen NP 2000 CD . SENT Komercni NP banka NP 60 CD to TO strategic JJ investors NNS , , in IN progress NN 2000 CD . SENT Source NN . SENT Janacek NP and CC Tomsik NP op NN . SENT cit NNS . SENT The DT privatization NN of IN banks NNS was VBD another DT factor NN in IN sectoral JJ consolidation NN , , stepped VVD up RP since IN 1998 CD with IN the DT sale NN of IN some DT of IN the DT country NN s VVZ largest JJS banks NNS see VVP box NN 3 CD . SENT 2 LS . SENT Government NN plans NNS envisaged VVD the DT divesture NN of IN the DT rest NN especially RB the DT major JJ banks NNS in IN 2000 CD and CC 2001 CD , , through IN their PP$ sale NN to TO strong JJ foreign JJ financial JJ institutions NNS . SENT M NP A DT activity NN in IN the DT financial JJ sector NN can MD be VB adduced VVN from IN the DT share NN of IN foreign JJ capital NN in IN the DT ownership NN of IN Czech JJ banks NNS , , which WDT had VHD risen VVN to TO 48 CD . SENT 4 CD per IN cent NN by IN December NP 1999 CD , , even RB before IN the DT privatization NN of IN some DT big JJ banks NNS partly RB greenfield NP investments NNS , , but CC more JJR through IN M NP A DT related JJ inflows NNS . SENT Many JJ local JJ financial JJ institutions NNS are VBP undercapitalized VVN . SENT With IN increased JJ foreign JJ competition NN , , many JJ local JJ institutions NNS will MD be VB forced VVN to TO close VV or CC seek VV foreign JJ or CC local JJ partners NNS . SENT Table NN 3 CD . SENT 6 CD . SENT Number NN of IN employees NNS and CC banking NN units NNS in IN the DT banking NN sector NN of IN the DT Czech NP Republic NP , , 1994 CD 99 CD 1994 JJ 1995 CD 1996 CD 1997 JJ 1998 CD 1999 CD No DT . SENT of IN employees NNS 58 CD 920 CD 61 JJ 073 CD 60 CD 137 JJ 57 CD 082 CD 52 JJ 760 CD 48 CD 955 CD Employees NNS per IN bank NN 3 CD 467 CD 3 CD 411 JJ 3 CD 172 CD 2 CD 467 JJ 2 CD 200 CD 2 CD 006 CD Employees NNS per IN banking NN unit NN 17 CD 18 CD 19 JJ 23 CD 24 CD 24 CD Population NN per IN banking NN unit NN 2 CD 981 CD 3 CD 029 JJ 3 CD 252 CD 4 CD 177 JJ 4 CD 639 CD 5 CD 134 CD Population NN per IN employee NN 175 CD 169 CD 172 JJ 181 CD 195 CD 210 CD Source NN . SENT Janacek NP and CC Tomsik NP , , op NN . SENT cit NNS . SENT An DT analysis NN of IN the DT effects NNS of IN consolidation NN is VBZ hampered VVN because IN official JJ data NNS on IN bank NN employment NN are VBP only RB published VVN for IN the DT sector NN as IN a DT whole NN , , while IN data NNS for IN individual JJ acquired VVN banks NNS or CC those DT which WDT have VHP been VBN involved VVN in IN a DT merger NN are VBP not RB . SENT However RB , , statistics NNS indicate VVP a DT strong JJ direct JJ correlation NN between IN the DT numbers NNS of IN institutions NNS and CC employees NNS . SENT As RB with IN the DT number NN of IN banks NNS , , staff NN numbers NNS peaked VVN in IN 1995 CD , , declining VVG thereafter RB . SENT By IN December NP 1999 CD , , employee NN figures NNS had VHD dropped VVN to TO 48 CD , , 955 CD , , a DT decline NN of IN 7 CD . SENT 2 CD per IN cent NN in IN a DT year NN , , and CC 16 CD . SENT 9 CD per IN cent NN from IN 1994 CD , , parallelled VVN by IN that DT in IN the DT number NN of IN branches NNS and CC other JJ banking NN outlets NNS a DT spectacular JJ 42 CD . SENT 1 CD per IN cent NN fall NN see VVP table NN 3 CD . SENT 6 CD . SENT Mainly RB affecting VVG the DT large JJ banks NNS , , this DT 1996 CD 99 CD slump NN resulted VVN in IN 1 CD , , 405 CD branches NNS or CC outlets NNS being VBG closed VVN and CC 12 CD , , 118 CD jobs NNS cut VVD . SENT The DT shares NNS of IN large JJ domestically RB owned VVN banks NNS are VBP 10 CD and CC 40 CD per IN cent NN , , for IN staff NN and CC banking NN outlets NNS respectively RB . SENT However RB , , for IN foreign JJ owned VVN banks NNS , , staff NN and CC outlet NN numbers NNS increased VVN from IN 1995 CD staff NN grew VVD by IN over IN 65 CD per IN cent NN between IN 1994 CD and CC 1999 CD to TO 4 CD , , 831 CD , , while IN outlets NNS rose VVD by IN 90 CD per IN cent NN to TO 917 CD . SENT Employment NN growth NN in IN foreign JJ owned VVN banks NNS thus RB tempered VVN , , but CC did VVD not RB fully RB absorb VV , , job NN losses NNS in IN local JJ banks NNS , , partly RB due JJ to TO differences NNS in IN market NN orientation NN , , staffing VVG requirements NNS and CC organizational JJ structures NNS . SENT Foreign JJ owned JJ banks NNS are VBP usually RB single JJ location NN operators NNS , , focusing VVG on IN a DT wholesale JJ corporate JJ clientele NN which WDT is VBZ less RBR demanding VVG in IN terms NNS of IN both DT staff NN and CC organization NN . SENT The DT ratios NNS of IN total JJ assets NNS per IN employee NN in IN foreign JJ banks NNS are VBP roughly RB double RB those DT seen VVN in IN big JJ Czech JJ owned VVN banks NNS . SENT The DT more RBR rapid JJ decline NN in IN banking NN units NNS as RB compared VVN to TO staff NN indicates VVZ that DT small JJ banking NN outlets NNS are VBP closing VVG , , banking NN services NNS are VBP being VBG consolidated VVN into IN larger JJR organizational JJ units NNS and CC the DT average JJ staffing NN size NN of IN outlets NNS is VBZ rising VVG going VVG from IN 17 CD to TO 24 CD between IN 1994 CD and CC 1999 CD see VVP table NN 3 CD . SENT 6 CD . SENT Other JJ Central NP and CC Eastern NP European NP countries NNS are VBP registering VVG various JJ degrees NNS of IN financial JJ sector NN consolidation NN . SENT Although IN their PP$ employment NN effects NNS cannot NN yet RB be VB ascertained VVN , , they PP will MD probably RB be VB comparable JJ to TO those DT in IN the DT Czech JJ case NN Slovenia NN s PP Government NP decided VVD in IN 1998 CD that IN 20 CD banks NNS were VBD too RB many JJ for IN a DT small JJ country NN . SENT The DT Finance NP Minister NP felt VVD they PP lacked VVD the DT resource NN base NN and CC financial JJ strength NN to TO marshal NN the DT relatively RB big JJ loans NNS needed VVN by IN large JJ and CC medium NN sized VVD companies NNS . SENT Nova NP Ljubljanska NP Banka NP NLB NP , , keen JJ to TO escape VV government NN held JJ reins NNS , , has VHZ increased VVN stakes NNS in IN and CC links NNS with IN some DT of IN its PP$ five CD regional JJ associate NN banks NNS and CC recently RB engaged VVN in IN a DT bidding NN war NN for IN Dolenjska NP Bank NP , , a DT small JJ regional JJ bank NN , , with IN Nova NP Kreditna NP Banka NP Maribor NN . SENT SKB NP Banka NP , , the DT country NN s PP second RB largest JJS bank NN , , 49 CD per IN cent NN foreign JJ owned VVN , , has VHZ taken VVN over IN UBK NP , , a DT regional JJ bank NN . SENT Similar JJ processes NNS throughout IN the DT region NN are VBP likely JJ to TO end VV with IN a DT highly RB consolidated JJ financial JJ sector NN and CC a DT fall NN in IN sectoral JJ employment NN . SENT Romania NP , , for IN instance NN , , is VBZ actively RB seeking VVG buyers NNS to TO turn VV around IN Banca NP Agricola NP and CC the DT Romanian JJ Commercial NP Bank NP BCR NP . SENT The DT Government NN liquidated VVN Banca NP Agricola NP s PP bad JJ debts NNS injecting VVG 1 CD billion CD , , established VVN a DT retrenchment NN programme NN in IN 1999 CD to TO reduce VV the DT workforce NN from IN 5 CD , , 800 CD to TO 3 CD , , 400 CD , , overhauled VVN IT PP systems NNS to TO shift VV about IN 50 CD per IN cent NN of IN its PP$ activities NNS online JJ intended VVD to TO be VB 80 CD per IN cent NN by IN the DT time NN of IN sale NN and CC lined VVD up RB support VV from IN the DT European NP Bank NP for IN Reconstruction NN and CC Development NP EBRD NP . SENT Latin NP America NP and CC the DT Caribbean JJ Consolidation NN is VBZ under IN way NN in IN Latin NP America NP , , mostly RB via IN M NP As RB linked VVD to TO the DT privatization NN and CC restructuring NN of IN financial JJ services NNS . SENT Retrenchments NNS sometimes RB precede VV the DT transfer NN of IN ownership NN to TO the DT private JJ sector NN , , as IN governments NNS attempt VVP to TO make VV enterprises NNS more RBR attractive JJ to TO buyers NNS and CC continue VV as IN the DT new JJ owners NNS replace VVP staff NN by IN new JJ technology NN and CC introduce VV other JJ cost NN cutting VVG measures NNS . SENT M NP As RB among IN private JJ enterprises NNS then RB continue VVP to TO whittle VV down RP the DT number NN of IN firms NNS . SENT Argentina NP had VHD over IN 200 CD banks NNS in IN 1994 CD by IN 1999 CD , , consolidation NN had VHD reduced VVN this DT figure NN to TO about IN 120 CD , , resulting VVG in IN the DT disappearance NN of IN 22 CD , , 000 CD financial JJ sector NN jobs NNS . SENT Since IN deregulation NN opened VVD the DT sector NN to TO foreign JJ investors NNS more RBR European JJ banks NNS have VHP established VVN themselves PP and CC captured VVN substantial JJ and CC sometimes RB dominant JJ market NN shares NNS . SENT In IN Argentina NP , , of IN the DT surviving VVG nine CD banks NNS holding VVG 67 CD per IN cent NN of IN deposits NNS , , six CD are VBP foreign JJ owned VVN , , acquired VVN by IN such JJ Spanish JJ giants NNS as IN BBVA NP and CC Santander NP , , by IN far RB the DT largest JJS acquirers NNS of IN financial JJ institutions NNS across IN Latin NP America NP . SENT The DT Latin JJ American JJ economies NNS , , particularly RB Brazil NP , , Argentina NP , , Mexico NP and CC Chile NP , , have VHP received VVN tremendous JJ investment NN flows NNS from IN European JJ and CC American JJ financial JJ corporations NNS , , in IN search NN of IN outlets NNS for IN excessive JJ liquidity NN in IN developed JJ economies NNS and CC exporting VVG European JJ competition NN to TO other JJ international JJ locations NNS . SENT In IN 1997 CD , , Brazil NP s PP Banco NP Geral NP do VVP Com NN rcio NN was VBD bought VVN by IN Santander NP , , while IN Lloyds NP acquired VVD Banco NP Multiplic NP and CC Financeira NP Losango NP , , moving VVG towards IN the DT competition NN in IN the DT field NN of IN mass JJ services NNS . SENT It PP opted VVD , , however RB , , not RB to TO establish VV a DT large JJ network NN of IN branches NNS , , concentrating VVG instead RB on IN telebanking NN . SENT The DT rate NN of IN transactions NNS accelerated VVD , , to TO the DT point NN where WRB the DT Central NP Bank NP warned VVD that DT business NN among IN private JJ institutions NNS should MD not RB become VV public JJ knowledge NN , , or CC be VB considered VVN completed VVN , , before IN being VBG approved VVN by IN the DT President NP of IN the DT Republic NP . SENT However RB , , from IN 1997 CD to TO 1998 CD the DT market NN opening NN process NN accelerated VVD . SENT Following VVG the DT expansion NN of IN British JJ and CC Spanish JJ capital NN , , Portuguese JJ institutions NNS moved VVN in IN . SENT The DT state NN owned VVD Portuguese JJ bank NN Caixa NP Geral NP de NP Depositos NP bought VVD the DT Bandeirantes NP conglomerate NN and CC Esp NP ritu NP Santo NP associated VVN with IN Cr NP dit NP Agricole NP and CC Dresdner NP took VVD control NN of IN two CD Brazilian JJ financial JJ groups NNS . SENT In IN 1998 CD , , following VVG the DT Asian JJ crisis NN , , only RB Banco NP Sudam NP ris NN , , under IN Italian JJ control NN and CC Banco NP Garantia NP , , the DT main JJ Brazilian JJ owned VVN investment NN bank NN since IN 1980 CD , , passed VVN under IN the DT control NN of IN Credit NP Suisse NP First NP Boston NP following VVG losses NNS in IN Asia NP . SENT Another DT major JJ transaction NN consisted VVN of IN GE NP Capital NP Services NPS in IN the DT retail JJ market NN acquiring VVG Banco NP Mappin NP and CC Financeira NP Mesbla NP and CC establishing VVG a DT position NN in IN the DT lucrative JJ niche NN of IN consumer NN credit NN . SENT Excel NP Econ NP mico NP was VBD sold VVN to TO Banco NP Bilbao NP Vizcaya NP , , which WDT entered VVD the DT Brazilian JJ market NN after IN establishing VVG itself PP in IN other JJ Latin JJ American JJ markets NNS . SENT Banking NN consolidation NN in IN Mexico NP reached VVD a DT milestone NN in IN June NP 2000 CD with IN the DT acceptance NN by IN the DT board NN of IN Bancomer NP , , the DT country NN s VVZ largest JJS bank NN , , of IN an DT offer NN by IN Spain NP s PP BBVA NP for IN a DT 32 CD . SENT 2 CD per IN cent NN controlling VVG stake NN . SENT This DT capped JJ unprecedented JJ turmoil NN in IN Mexican JJ banking NN as IN the DT successful JJ bid NN beat VVD that IN of IN Banamex NP , , the DT second JJ largest JJS Mexican JJ bank NN . SENT BBVA NP plans VVZ to TO merge VV its PP$ new JJ acquisition NN with IN BBV NP Probursa NP , , its PP$ local JJ subsidiary NN . SENT With IN the DT acquisition NN of IN Banpais NP by IN Banorte NP in IN 1997 CD , , and CC the DT acquisition NN of IN Confia NP by IN Citibank NP in IN 1998 CD , , Mexico NP s PP banking VVG sector NN is VBZ one CD of IN the DT most RBS highly RB consolidated VVN in IN the DT world NN , , with IN six CD banks NNS controlling VVG 84 CD per IN cent NN of IN national JJ assets NNS . SENT M NP As RB in IN the DT Caribbean NP , , very RB limited VVN in IN comparison NN with IN more JJR developed JJ economies NNS , , are VBP largely RB the DT result NN of IN government NN divesture NN programmes NNS aimed VVN at IN enhancing VVG financial JJ sector NN efficiency NN and CC competitiveness NN , , mainly RB among IN commercial JJ banks NNS , , with IN some DT activity NN among IN insurance NN companies NNS . SENT Since IN 1991 CD , , the DT sector NN has VHZ undergone VVN major JJ restructuring NN , , including VVG mergers NNS and CC acquisitions NNS , , in IN Guyana NP , , Jamaica NP and CC Trinidad NP , , among IN others NNS . SENT Although IN employment NN changes NNS look VVP modest JJ in IN absolute JJ terms NNS , , they PP should MD be VB seen VVN in IN relation NN to TO the DT size NN of IN economies NNS and CC labour NN forces NNS . SENT Banks NNS have VHP been VBN involved VVN to TO a DT greater JJR extent NN as IN they PP are VBP the DT dominant JJ financial JJ institutions NNS . SENT Merger NN activity NN has VHZ been VBN influenced VVN mainly RB by IN the DT need NN to TO avert VV financial JJ sector NN crisis NN and CC has VHZ been VBN promoted VVN mainly RB by IN government NN , , but CC some DT mergers NNS have VHP been VBN on IN economic JJ grounds NNS . SENT Most JJS M NP As IN in IN Guyana NP resulted VVD from IN a DT government NN initiative NN to TO sell VV financial JJ institutions NNS . SENT In IN 1991 CD it PP sold VVD 70 CD per IN cent NN of IN its PP$ shareholding NN in IN Guyana NP Bank NP for IN Trade NP and CC Industry NP and CC completed VVD the DT divestment NN in IN 1994 CD an DT industrial JJ conglomerate NN gained VVD majority NN control NN . SENT In IN 1995 CD , , the DT Government NP merged VVD Guyana NP National NP Cooperative JJ Bank NP and CC Guyana NP Co NP operative NN Agricultural NP Development NP Bank NP , , which WDT were VBD performing VVG poorly RB and CC were VBD close JJ to TO insolvency NN and CC the DT merger NN was VBD seen VVN as IN the DT only JJ way NN they PP could MD be VB salvaged VVN , , if IN at IN all DT . SENT In IN all DT three CD cases NNS , , retrenchments NNS followed VVD or CC employment NN conditions NNS deteriorated VVD . SENT The DT insurance NN industry NN also RB experienced VVN reform NN and CC privatization NN , , resulting VVG in IN the DT sale NN of IN Guyana NP Cooperative JJ Insurance NP Society NP to TO a DT local JJ private JJ sector NN competitor NN . SENT there EX had VHD been VBN downsizing VVG prior RB to TO privatization NN and CC 47 CD of IN the DT 165 CD staff NN were VBD made VVN redundant JJ . SENT Following VVG the DT sale NN , , a DT further JJR 21 CD staff NN members NNS were VBD retrenched VVN . SENT In IN 1997 CD , , Guyana NP witnessed VVD its PP$ first JJ cross NN border NN sale NN when WRB Republic NP Bank NP of IN Trinidad NP and CC Tobago NP acquired VVD a DT controlling JJ interest NN in IN its PP$ largest JJS commercial JJ bank NN , , National NP Bank NP for IN Industry NP and CC Commerce NP . SENT The DT crisis NN facing VVG Jamaica NP s PP financial JJ sector NN provided VVD added JJ impetus NN to TO the DT need NN for IN M NP As IN , , as IN the DT Government NN attempted VVD to TO restore VV stability NN and CC confidence NN . SENT Some DT mergers NNS took VVD place NN in IN non JJ bank NN financial JJ institutions NNS , , some DT were VBD the DT result NN of IN regulatory JJ intervention NN and CC others NNS were VBD based VVN on IN individual JJ initiative NN . SENT Between IN 1995 CD and CC 1998 CD , , 17 CD credit NN unions NNS were VBD merged VVN or CC acquired VVN , , while IN the DT number NN of IN building NN societies NNS also RB declined VVD from IN 35 CD to TO eight CD through IN the DT same JJ process NN of IN consolidation NN . SENT While IN no DT staff NN were VBD retained VVN after IN the DT 1996 CD takeover NN of IN First NP Metropolitan NP Building NP Society NP by IN Jamaican JJ National NP Building NP Society NP , , when WRB the DT latter NN merged VVN with IN Hanover NP Benefit NP Building NP Society NP all DT staff NN were VBD retained VVN . SENT The DT largest JJS merger NN in IN Jamaica NP occurred VVD in IN 1996 CD between IN National NP Commercial NP Bank NP NCB NP Jamaica NP and CC Mutual NP Security NP Bank NP MSB NP . SENT Both DT banks NNS common JJ parent NN , , Jamaican JJ Mutual NP Life NP Assurance NP , , felt VVD that IN an DT integration NN of IN the DT companies NNS would MD increase VV their PP$ overall JJ worth NN . SENT At IN the DT time NN of IN the DT merger NN , , NCB NP had VHD 2 CD , , 346 CD staff NN and CC MSB NP 1 CD , , 004 CD . SENT By IN 1997 CD , , after IN the DT merger NN , , the DT number NN of IN branches NNS had VHD been VBN reduced VVN from IN 19 CD to TO nine CD and CC in IN 1998 CD a DT further JJR two CD branches NNS and CC six CD agencies NNS were VBD closed VVN . SENT The DT reduction NN of IN branches NNS and CC staff NN was VBD associated VVN with IN the DT introduction NN of IN information NN technology NN . SENT By IN the DT end NN of IN the DT rationalization NN process NN , , the DT number NN of IN staff NN had VHD been VBN reduced VVN from IN 3 CD , , 350 CD to TO 2 CD , , 614 CD . SENT Similarly RB , , in IN Jamaica NP Union NP Bank NP of IN Jamaica NP , , the DT country NN s NN third JJ largest JJS bank NN , , is VBZ the DT result NN of IN a DT merger NN between IN four CD FINSAC NP controlled VVD commercial JJ banks NNS and CC three CD allied VVD merchant NN banks NNS which WDT sought VVD government NN assistance NN when WRB faced VVN with IN the DT risk NN of IN bankruptcy NN . SENT Prior RB to TO the DT merger NN , , the DT banks NNS operated VVD a DT total NN of IN 42 CD branches NNS nationally RB , , a DT figure NN which WDT has VHZ been VBN reduced VVN to TO 37 CD and CC is VBZ expected VVN to TO fall VV even RB further RBR to TO 24 CD . SENT The DT exact JJ number NN of IN staff NN reductions NNS is VBZ unavailable JJ , , but CC is VBZ thought VVN to TO have VH been VBN substantial JJ , , as RB one CD of IN the DT compelling JJ reasons NNS for IN the DT merger NN was VBD the DT need NN to TO return VV the DT financial JJ sector NN to TO a DT size NN the DT economy NN can MD sustain VV . SENT Following VVG a DT run VVN situation NN on IN three CD indigenous JJ banks NNS National NP Commercial NP Bank NP of IN Trinidad NP and CC Tobago NP , , Trinidad NP Cooperative JJ Bank NP and CC Workers NP Bank NP the DT Central NP Bank NP transferred VVD control NN of IN all DT three CD to TO First NP Citizens NPS Bank NP . SENT After IN an DT initial JJ decrease NN in IN the DT number NN of IN employees NNS by IN 171 CD to TO 989 CD , , staff NN levels NNS have VHP started VVN to TO rise VV again RB and CC are VBP now RB at IN 1 CD , , 009 CD . SENT In IN the DT acquisition NN of IN Republic NP Bank NP by IN Bank NP of IN Commerce NP owned VVN by IN CIBC NP of IN Canada NP , , completed VVN in IN October NP 1997 CD , , about RB 22 CD per IN cent NN of IN the DT total JJ combined JJ staff NN of IN the DT new JJ entity NN 554 CD people NNS applied VVN for IN the DT separation NN packages NNS that WDT had VHD been VBN offered VVN . SENT Both CC this DT acquisition NN and CC a DT number NN of IN those DT that WDT have VHP occurred VVN in IN the DT insurance NN industry NN may MD be VB considered VVN to TO have VH had VHN positive JJ outcomes NNS , , since IN redundancies NNS were VBD voluntary JJ and CC separation NN packages NNS were VBD generous JJ or CC , , in IN the DT case NN of IN the DT insurance NN industry NN , , the DT merger NN or CC acquisition NN actually RB resulted VVD in IN the DT new JJ company NN expanding VVG operations NNS and CC therefore RB increasing VVG staff NN levels NNS through IN new JJ recruitment NN . SENT An DT example NN of IN post NN acquisition NN job NN growth NN is VBZ the DT 1991 CD Guardian NP Life NP of IN the DT Caribbean NP , , which WDT following NN the DT acquisition NN of IN Crown NP Life NP Caribbean NP , , increased VVD its PP$ sales NNS force VVP by IN 280 CD staff NN . SENT Royal NP Bank NP of IN Trinidad NP and CC Tobago NP was VBD the DT first JJ commercial JJ bank NN to TO acquire VV interests NNS outside IN its PP$ domestic JJ market NN , , guided VVN by IN such JJ considerations NNS as IN familiarity NN with IN laws NNS and CC markets NNS in IN economies NNS where WRB it PP can MD analyse VV risk NN and CC which WDT are VBP compatible JJ with IN its PP$ existing JJ technology NN . SENT Most JJS acquisitions NNS by IN Royal NP Bank NP took VVD place NN in IN the DT late JJ 1990 CD s PP . SENT North NP America NP In IN the DT United NP States NPS , , the DT number NN of IN banks NNS and CC banking NN organizations NNS stand VVP alone JJ banks NNS and CC top JJ tier NN bank NN holding NN companies NNS BHCs NP both CC fell VVD by IN almost RB 30 CD per IN cent NN between IN 1988 CD and CC 1997 CD . SENT 45 CD Concentration NN , , as RB measured VVN by IN the DT share NN of IN total JJ nationwide JJ assets NNS held VVN by IN the DT eight CD largest JJS banking NN organizations NNS , , rose VVD from IN 22 CD . SENT 3 CD to TO 35 CD . SENT 5 CD per IN cent NN . SENT Total JJ bank NN offices NNS rose VVD by IN 16 CD . SENT 8 CD per IN cent NN , , although IN total JJ bank NN plus CC thrift NN offices NNS declined VVD by IN 0 CD . SENT 1 CD per IN cent NN partly RB because IN banks NNS acquired VVD branches NNS formerly RB owned VVN by IN failed JJ thrifts NNS . SENT American JJ banking NN has VHZ experienced VVN the DT most RBS rapid JJ and CC extensive JJ restructuring NN over IN 5 CD , , 000 CD banks NNS lost VVD their PP$ independence NN after IN being VBG purchased VVN during IN the DT 1980 CD s PP and CC 3 CD , , 000 CD more JJR disappeared VVD between IN 1990 CD and CC 1997 CD . SENT Almost RB half PDT the DT banks NNS operating VVG in IN 1980 CD had VHD been VBN bought VVN by IN 2000 CD . SENT From IN 1997 CD to TO 1999 CD , , the DT number NN of IN banks NNS declined VVD by IN 30 CD per IN cent NN and CC the DT market NN share NN of IN the DT eight CD largest JJS rose VVD from IN 22 CD to TO 35 CD per IN cent NN . SENT In IN 1997 CD mergers NNS took VVD place NN between IN Morgan NP Stanley NP and CC Dean NP Witter NP , , and CC Travelers NP and CC Salomon NP Brothers NPS . SENT Travelers NP again RB merged VVD in IN 1998 CD with IN Citicorp NP to TO form VV Citigroup NP , , the DT world NN s PP fifth RB largest JJS bank NN and CC America NP s PP first JJ by IN revenue NN . SENT The DT objective NN was VBD to TO create VV a DT global JJ financial JJ supermarket NN and CC by IN 1999 CD it PP already RB had VHD 100 CD million CD clients NNS . SENT In IN 1999 CD , , BankAmerica NP , , born VVN of IN a DT merger NN between IN BankAmerica NP and CC NationsBank NP a DT year NN earlier RBR then RB fifth JJ and CC third NN largest JJS American JJ banks NNS , , respectively RB , , ranked VVD closely RB behind IN Citigroup NN in IN terms NNS of IN assets NNS 620 CD billion CD and CC capitalization NN . SENT another DT mega JJ merger NN united VVN Bank NP of IN Boston NP and CC Fleet NP Financial NP . SENT The DT only JJ foreign JJ bank NN to TO succeed VV in IN acquiring VVG an DT American JJ financial JJ organization NN in IN a DT 20 CD year NN period NN was VBD Deutsche NP Bank NP in IN 1998 CD Bankers NPS Trust NP . SENT In IN July NP 2000 CD , , the DT Swiss JJ financial JJ group NN UBS NP the DT first JJ non JJ American JJ financial JJ services NNS group NN to TO become VV listed VVN on IN Wall NP Street NP announced VVD its PP$ takeover NN of IN PaineWebber NP , , copying VVG a DT model NN pioneered VVD by IN Merrill NP Lynch NP that WDT combines VVZ the DT process NN of IN creating VVG securities NNS for IN sale NN investment NN banking NN with IN the DT distribution NN of IN those DT products NNS to TO investors NNS through IN brokers NNS . SENT Citigroup NP and CC Morgan NP Stanley NP Dean NP Witter NP , , the DT largest JJS securities NNS firm NN , , are VBP products NNS of IN mergers NNS of IN investment NN banks NNS and CC brokerage NN firms NNS . SENT Table NN 3 CD . SENT 7 CD . SENT Concentration NN in IN non JJ bank NN segments NNS of IN financial JJ services NNS , , United NP States NPS 1988 CD 1989 CD 1990 JJ 1991 CD 1992 CD 1993 JJ 1994 CD 1995 CD 1996 CD 1997 CD Life NP insurance NN . SENT Number NN of IN firms NNS Asset NP share NN of IN 8 CD largest JJS 1 CD 367 CD 42 JJ 1 CD 288 CD 40 JJ 1 CD 223 CD 39 JJ 1 CD 221 CD 38 JJ 1 CD 177 CD 37 JJ 1 CD 187 CD 36 JJ 1 CD 082 CD 35 JJ 1 CD 054 CD 35 JJ 1 CD 001 CD 35 CD NA TO NA TO Property NP liability NN insurance NN . SENT Number NN of IN firms NNS Asset NP share NN of IN 8 CD largest JJS 940 JJ 33 CD 1 CD 193 JJ 32 CD 1 CD 272 JJ 32 CD 1 CD 267 JJ 32 CD 1 CD 232 JJ 32 CD 1 CD 197 JJ 32 CD 1 CD 187 JJ 31 CD 1 CD 179 JJ 34 CD 1 CD 138 CD 36 CD NA TO NA TO Securities NNS firms NNS . SENT Number NN of IN firmsCapital JJ share NN of IN 10 CD largest JJS 6 CD 432 CD 58 JJ 6 CD 141 CD 62 JJ 5 CD 827 CD 64 JJ 5 CD 386 CD 62 JJ 5 CD 260 CD 62 JJ 5 CD 292 CD 63 JJ 5 CD 426 CD 61 JJ 5 CD 451 CD 59 JJ 5 CD 553 CD 59 JJ 5 CD 597 CD 56 CD Savings NP institutions NNS . SENT Number NN of IN firms NNS Asset NP share NN of IN 8 CD largest JJS 3 CD 175 CD 14 JJ 3 CD 100 CD 15 JJ 2 CD 725 CD 18 JJ 2 CD 386 CD 20 JJ 2 CD 086 CD 19 JJ 726 CD 18 CD 1 CD 532 JJ 19 CD 1 CD 420 JJ 22 CD 1 CD 322 JJ 21 CD 1 CD 201 CD 31 CD Credit NP unions NNS . SENT Number NN of IN firmsAsset NN share NN of IN 8 CD largest JJS 13 JJ 875 CD 6 CD 13 JJ 371 CD 7 CD 12 JJ 860 CD 7 CD 12 JJ 960 CD 7 CD 12 JJ 594 CD 7 CD 12 JJ 317 CD 8 CD 11 JJ 991 CD 8 CD 11 JJ 687 CD 8 CD 11 JJ 392 CD 8 CD 11 JJ 238 CD 8 CD Source NN . SENT Berger NP et NP al NP . SENT , , op NN . SENT cit NNS . SENT Linear NP extrapolations NNS indicate VVP various JJ outcomes NNS over IN the DT next JJ 10 CD to TO 15 CD years NNS depending VVG on IN dates NNS and CC methodology NN . SENT One CD 1992 CD study NN made VVD a DT best JJS guess NN estimate NN of IN 5 CD , , 500 CD independent JJ banking NN organizations NNS in IN 2010 CD , , the DT largest JJS 50 CD accounting NN for IN 70 CD per IN cent NN of IN domestic JJ assets NNS and CC the DT top JJ 100 CD sharing NN 87 CD per IN cent NN . SENT A DT 1995 CD study NN , , using VVG failure NN and CC merger NN models NNS , , projected VVD 7 CD , , 787 CD organizations NNS by IN 2000 CD , , a DT figure NN which WDT has VHZ already RB been VBN realized VVN . SENT Extrapolating VVG this DT to TO 2010 CD yields NNS an DT estimate NN of IN 4 CD , , 771 CD banking NN organizations NNS . SENT Another DT study NN has VHZ projected VVN an DT astonishing JJ drop NN to TO 2 CD , , 390 CD banking NN organizations NNS by IN 2010 CD . SENT However RB , , such JJ extrapolations NNS do VVP not RB specify VV the DT processes NNS generating NN change NN . SENT Another DT method NN might MD suggest VV that IN the DT number NN of IN banks NNS in IN contrast NN to TO banking NN organizations NNS could MD decline VV to TO about IN 7 CD , , 000 CD , , at IN least JJS by IN 2002 CD , , and CC then RB begin VV to TO rise VV again RB . SENT Factors NNS likely JJ to TO slow VV the DT decline NN and CC spur VV growth NN include VVP a DT decrease NN in IN the DT number NN of IN potential JJ multibank NN holding NN consolidations NNS and CC mergers NNS among IN independents NNS , , as IN the DT best JJS deals NNS are VBP consummated VVN and CC an DT increase NN in IN entry NN by IN the DT number NN of IN independent JJ new JJ banks NNS filling VVG niche NN markets NNS abandoned VVN by IN larger JJR , , consolidated JJ banks NNS . SENT Canada NP , , despite IN a DT tradition NN of IN restricting VVG many JJ types NNS of IN M NP As RB , , has VHZ experienced VVN more JJR than IN 350 CD in IN the DT sector NN since IN 1990 CD , , according VVG to TO the DT Conference NP Board NP of IN Canada NP . SENT Activity NN is VBZ expected VVN to TO grow VV significantly RB following VVG government NN legislative JJ proposals NNS for IN a DT comprehensive JJ reform NN of IN the DT financial JJ system NN , , including VVG new JJ rules NNS on IN M NP As RB . SENT This DT aims VVZ at IN striking VVG a DT balance NN between IN the DT competitive JJ needs NNS of IN the DT sector NN in IN a DT globally RB competitive JJ environment NN and CC better JJR protection NN of IN consumers NNS and CC workers NNS . SENT While IN the DT new JJ rules NNS would MD increase VV the DT proportion NN of IN shares NNS of IN large JJ banks NNS an DT investor NN could MD own VV to TO 20 CD per IN cent NN of IN voting NN shares NNS and CC 30 CD per IN cent NN of IN non JJ voting NN shares NNS , , the DT Bank NP Act NP would MD continue VV to TO prohibit VV control NN of IN large JJ financial JJ institutions NNS by IN single JJ shareholders NNS or CC groups NNS of IN shareholders NNS . SENT Rules NNS for IN non JJ bank NN financial JJ institutions NNS provide VVP for IN continued JJ wide JJ ownership NN of IN demutualized JJ companies NNS with IN over IN C $ 5 CD billion CD in IN equity NN , , while IN demutualized JJ insurers NNS with IN equity NN of IN less JJR than IN that DT amount NN will MD be VB eligible JJ to TO be VB closely RB held VVN after IN a DT transition NN period NN to TO end VV on IN 31 CD December NP 2001 CD . SENT The DT policy NN would MD prohibit VV acquisitions NNS or CC mergers NNS between IN large JJ banks NNS and CC large JJ demutualized JJ insurance NN companies NNS or CC such JJ linkages NNS between IN their PP$ holding NN companies NNS . SENT The DT threshold NN above IN which WDT trust NN companies NNS , , stock NN life NN insurance NN companies NNS and CC property NN and CC casualty NN insurance NN companies NNS must MD have VH a DT 35 CD per IN cent NN public JJ float NN would MD go VV from IN C $ 750 CD million CD to TO C $ 1 CD billion CD . SENT Thematic JJ overview NN M NP As RB , , technological JJ and CC work VV organization NN changes NNS and CC enterprises NNS pursuit NN of IN competitive JJ advantages NNS are VBP having VHG a DT profound JJ impact NN on IN sectoral JJ employment NN worldwide RB . SENT There EX has VHZ been VBN a DT decline NN in IN permanent JJ employment NN , , increased VVD job NN instability NN and CC insecurity NN , , and CC rapid JJ growth NN of IN various JJ non JJ standard JJ forms NNS of IN work NN , , including VVG part NN time NN and CC temporary JJ employment NN . SENT The DT ILO NP report NN Social NP effects NNS of IN structural JJ change NN in IN banking NN extensively RB analysed VVD M NP A NP processes VVZ , , noting VVG that IN they PP invariably RB led VVD to TO branch VV closures NNS and CC staff NN retrenchment NN . SENT 46 CD The DT cause NN and CC effect NN relationship NN remains VVZ constant JJ in IN today NN s PP M NP As IN . SENT Job NN cuts NNS are VBP not RB only RB expected VVN in IN M NP As IN but CC are VBP built VVN into IN managerial JJ calculations NNS of IN desirable JJ outcomes NNS . SENT Financial JJ markets NNS and CC the DT financial JJ press NN invariably RB expect VVP cost NN savings NNS from IN staff NN expenses NNS as IN a DT clear JJ signal NN that IN the DT merged JJ entity NN intends VVZ to TO move VV aggressively RB to TO reduce VV operating VVG costs NNS and CC increase VV its PP$ income NN cost NN ratios NNS . SENT Employee NN turnover NN and CC mobility NN , , important JJ measures NNS of IN the DT extent NN to TO which WDT employment NN relationships NNS have VHP changed VVN , , are VBP on IN the DT increase NN . SENT Over IN the DT last JJ ten CD years NNS job NN tenure NN has VHZ been VBN on IN the DT decline NN , , especially RB for IN those DT who WP have VHP not RB systematically RB upgraded VVN their PP$ skills NNS and CC general JJ employability NN . SENT The DT pressure NN to TO reduce VV costs NNS , , especially RB fixed VVN costs NNS and CC to TO adopt VV flexible JJ staffing NN and CC work NN methods NNS has VHZ had VHN a DT pervasive JJ effect NN on IN employment NN . SENT Nevertheless RB , , it PP is VBZ downsizing VVG permanent JJ job NN reductions NNS driven VVN mostly RB by IN corporate JJ restructuring NN which WDT has VHZ received VVN most JJS attention NN . SENT The DT process NN differs VVZ significantly RB from IN lay VV offs NNS during IN earlier JJR periods NNS that WDT were VBD caused VVN by IN recessions NNS and CC were VBD largely RB temporary JJ . SENT Job NN insecurity NN in IN the DT globalized VVN economy NN affects VVZ people NNS in IN the DT traditionally RB most JJS stable JJ jobs NNS in IN sectors NNS previously RB offering VVG secure JJ , , high JJ paid JJ jobs NNS and CC career NN advancement NN opportunities NNS . SENT Continuing VVG efforts NNS to TO reshape VV the DT boundaries NNS of IN firms NNS through IN mergers NNS , , acquisitions NNS and CC outsourcing NN have VHP further RBR contributed VVD to TO job NN insecurity NN . SENT If IN jobs NNS are VBP outsourced VVN , , they PP might MD be VB as RB stable JJ as IN those DT in IN the DT original JJ companies NNS , , but CC in IN companies NNS that WDT are VBP bought VVN and CC sold VVN , , restructuring NN takes VVZ place NN over IN an DT extended JJ period NN and CC the DT employees NNS face VVP considerable JJ career NN disruption NN . SENT 47 CD Virtually RB all PDT the DT worldwide JJ M NP A DT activity NN reviewed VVN above RB has VHZ generated VVN lay VV offs NNS or CC employment NN contraction NN in IN financial JJ services NNS . SENT We PP will MD attempt VV to TO highlight VV the DT direct JJ job NN losses NNS that WDT have VHP resulted VVN from IN those DT specific JJ deals NNS . SENT It PP is VBZ important JJ , , however RB , , to TO include VV a DT caveat NN . SENT the DT data NNS included VVD here RB derives VVZ from IN companies NNS own JJ announcements NNS or CC estimates NNS from IN other JJ sources NNS , , including VVG affected JJ trade NN unions NNS . SENT For IN many JJ reasons NNS these DT may MD not RB reflect VV actual JJ job NN reductions NNS and CC some DT of IN the DT reasons NNS will MD help VV explain VV frequent JJ discrepancies NNS between IN the DT announced JJ and CC actual JJ job NN impact NN of IN individual JJ M NP As IN . SENT Firstly RB , , companies NNS often RB recruit VV staff NN with IN the DT skills NNS to TO suit VV jobs NNS in IN new JJ business NN lines NNS or CC for IN new JJ functions NNS at IN the DT same JJ time NN as IN eliminating VVG existing JJ positions NNS so RB that IN it PP becomes VVZ difficult JJ to TO ascertain VV the DT net JJ job NN impact NN of IN the DT merger NN or CC acquisition NN . SENT Churning NN , , as IN economists NNS term NN this DT practice NN , , is VBZ especially RB widespread JJ in IN the DT United NP States NPS . SENT Secondly RB , , during IN the DT course NN of IN integration NN , , companies NNS may MD realize VV their PP$ projections NNS were VBD over RB ambitious JJ and CC that IN the DT implementation NN of IN the DT full JJ retrenchment NN programme NN could MD seriously RB jeopardize VV the DT ability NN of IN the DT enterprise NN to TO respond VV to TO changes NNS in IN the DT economic JJ environment NN . SENT Thirdly RB , , regulatory JJ constraints NNS and CC industrial JJ relations NNS considerations NNS may MD induce VV organizations NNS to TO adjust VV their PP$ initial JJ plans NNS . SENT This DT report NN does VVZ not RB seek VV to TO cover VV job NN losses NNS in IN any DT comprehensive JJ manner NN . SENT It PP should MD , , in IN fact NN , , be VB noted VVN that IN because IN many JJ mergers NNS , , especially RB in IN the DT United NP States NPS , , involve VV small JJ local JJ financial JJ institutions NNS which WDT rarely RB appear VVP in IN the DT international JJ press NN , , the DT real JJ job NN losses NNS from IN M NP As IN in IN the DT financial JJ services NNS sector NN worldwide RB must MD be VB much RB higher JJR than IN the DT cases NNS included VVD here RB indicate VV . SENT Nevertheless RB , , the DT numbers NNS are VBP sufficiently RB indicative JJ of IN what WP enterprises NNS expect VVP to TO derive VV from IN M NP As IN in IN terms NNS of IN reductions NNS in IN staff NN numbers NNS and CC associated VVN payroll NN expenses NNS . SENT For IN the DT above JJ reasons NNS , , any DT examination NN of IN the DT employment NN impact NN of IN M NP As IN in IN general JJ , , and CC in IN the DT financial JJ services NNS sector NN in IN particular JJ , , faces VVZ serious JJ data NNS obstacles NNS . SENT There EX has VHZ so RB far RB been VBN little JJ systematic JJ tracking NN of IN job NN losses NNS resulting VVG from IN M NP As RB . SENT Existing VVG literature NN on IN M NP As IN also RB tends VVZ to TO focus VV almost RB exclusively RB on IN financial JJ , , competitive JJ , , consumer NN and CC shareholder NN considerations NNS . SENT National JJ statistical JJ data NNS is VBZ likewise RB usually RB deficient JJ as IN a DT tool NN to TO analyse VV employment NN repercussions NNS , , as IN few JJ national JJ statistical JJ offices NNS compile VV the DT type NN of IN M NP A DT related JJ data NNS that WDT would MD facilitate VV both CC the DT quantitative JJ and CC qualitative JJ analysis NN of IN their PP$ impact NN on IN employment NN . SENT Were VBD such JJ statistics NNS available JJ , , it PP would MD still RB be VB extremely RB difficult JJ to TO disentangle VV with IN any DT precision NN the DT effects NNS of IN M NP As IN from IN those DT of IN other JJ factors NNS , , such JJ as IN increased JJ competition NN and CC the DT introduction NN of IN new JJ technologies NNS . SENT Unlike IN past JJ M NP As IN , , which WDT were VBD primarily RB driven VVN by IN growth NN and CC market NN share NN goals NNS , , the DT vast JJ majority NN of IN M NP As IN today NN relate VVP to TO the DT need NN to TO contain VV costs NNS . SENT There EX has VHZ been VBN a DT definite JJ shift NN in IN focus NN towards IN increasing VVG margins NNS and CC profits NNS in IN a DT mature JJ , , deregulated VVN and CC globalized VVN industrial JJ sphere NN where WRB there EX is VBZ little JJ room NN to TO increase VV margins NNS any DT other JJ way NN other JJ than IN through IN cost NN reductions NNS . SENT A DT merger NN provides VVZ the DT ideal JJ occasion NN to TO review VV cost NN and CC revenue NN structures NNS as IN a DT basis NN for IN planning VVG and CC implementing VVG new JJ processing NN and CC staffing NN arrangements NNS . SENT The DT obvious JJ need NN to TO harmonize VV the DT human JJ resource NN practices NNS of IN two CD organizations NNS and CC to TO rationalize VV overlapping JJ functions NNS also RB provides VVZ persuasive JJ arguments NNS for IN job NN cuts NNS to TO eliminate VV duplication NN . SENT Competitive JJ and CC investor NN pressures NNS often RB ensure VV that DT even RB non JJ merging VVG banks NNS will MD seek VV to TO reduce VV their PP$ own JJ cost NN revenue NN ratios NNS to TO avoid VV lagging VVG behind IN the DT industry NN average NN . SENT In IN this DT way NN a DT merger NN , , even RB when WRB restricted VVN to TO only RB a DT few JJ institutions NNS , , can MD set VV off RP an DT industry NN wide JJ employment NN penalizing VVG chain NN reaction NN . SENT Job NN losses NNS in IN individual JJ firms NNS are VBP usually RB exacerbated VVN by IN increased JJ use NN of IN information NN and CC communications NN technologies NNS in IN the DT newly RB merged VVN organization NN and CC the DT outsourcing NN of IN functions NNS previously RB performed VVN by IN employees NNS . SENT Financial JJ institutions NNS around IN the DT world NN are VBP not RB only RB closing VVG traditional JJ outlets NNS as IN a DT result NN of IN M NP As IN but CC are VBP also RB reducing VVG staff NN at IN remaining VVG offices NNS by IN making VVG use NN of IN new JJ technology NN to TO overhaul VV back RB office NN and CC other JJ support NN operations NNS . SENT On IN the DT basis NN of IN current JJ trends NNS it PP is VBZ predicted VVN that IN , , given VVN the DT size NN of IN the DT acquisitions NNS possible JJ under IN current JJ policy NN standards NNS , , it PP is VBZ plausible JJ that IN by IN 2010 CD there RB could MD be VB a DT small JJ number NN , , perhaps RB five CD to TO ten CD , , of IN very RB large JJ multinational JJ organizations NNS present JJ in IN most RBS urban JJ areas NNS , , holding VVG a DT dominant JJ share NN of IN local JJ banking NN business NN , , along RB with IN a DT large JJ number NN of IN relatively RB small JJ , , local JJ community NN or CC regional JJ institutions NNS . SENT If IN these DT large JJ organizations NNS were VBD also RB to TO combine VV with IN large JJ non JJ banking NN firms NNS , , along IN the DT lines NNS of IN the DT 1998 CD Citicorp NP Travelers NPS merger NN , , their PP$ product NN markets NNS would MD increase VV substantially RB . SENT Moreover RB , , global JJ combinations NNS , , such JJ as IN Deutsche NP Bank NP and CC Bankers NPS Trust NP , , will MD also RB result VV in IN an DT increasing VVG number NN of IN foreign JJ market NN intersections NNS , , while IN lowering VVG the DT number NN of IN large JJ potential JJ competitors NNS in IN domestic JJ and CC global JJ markets NNS . SENT The DT number NN of IN organizations NNS that WDT remain VVP on IN the DT fringe NN will MD depend VV on IN the DT size NN of IN the DT niche NN markets VVZ they PP occupy VV , , the DT relative JJ cost NN structures NNS of IN small JJ and CC large JJ banking NN organizations NNS and CC the DT strategic JJ pricing NN arrangements NNS that WDT develop VVP . SENT Indisputably RB , , the DT efficiency NN measures NNS advanced VVD as IN the DT motive NN for IN most JJS M NP As IN inevitably RB affect VV the DT two CD areas NNS where WRB most RBS financial JJ sector NN staff NN have VHP traditionally RB been VBN employed VVN . SENT the DT branch NN and CC the DT back JJ office NN . SENT A DT decline NN in IN the DT number NN of IN banks NNS , , branches NNS and CC personnel NNS is VBZ already RB under IN way NN , , although IN statistics NNS from IN the DT United NP States NPS Federal NP Deposit NP Insurance NP Corporation NP indicate VVP an DT increase NN in IN the DT number NN of IN branches NNS from IN 80 CD , , 377 CD to TO 83 CD , , 290 CD between IN 1984 CD and CC 1998 CD . SENT In IN the DT European JJ Union NN there EX was VBD strong JJ growth NN in IN bank NN branches NNS 189 CD , , 100 CD in IN 1990 CD , , peaking VVG at IN 207 CD , , 260 CD in IN 1996 CD but CC the DT trend NN is VBZ beginning VVG to TO reverse VV . SENT The DT decline NN in IN the DT number NN of IN banks NNS in IN the DT European NP Union NP was VBD even RB more RBR striking JJ , , falling VVG from IN 14 CD , , 640 CD in IN 1990 CD to TO 8 CD , , 820 CD in IN 1997 CD . SENT After IN a DT period NN of IN employment NN growth NN from IN 2 CD , , 792 CD , , 600 CD employees NNS in IN 1992 CD to TO 2 CD , , 963 CD , , 800 CD in IN 1996 CD , , the DT number NN of IN bank NN personnel NNS in IN the DT European NP Union NP had VHD fallen VVN to TO 2 CD , , 940 CD , , 000 CD by IN 1997 CD . SENT The DT declining VVG trend NN in IN the DT number NN of IN banks NNS , , bank NN branches NNS and CC staff NN has VHZ subsequently RB continued VVN unabated JJ , , not RB least JJS as IN a DT result NN of IN M NP As IN boosting VVG national JJ financial JJ market NN consolidation NN . SENT Growing VVG public JJ attention NN is VBZ beginning VVG to TO be VB paid VVN to TO corporate JJ downsizing NN , , mass NN lay VVD offs NNS and CC other JJ human JJ dimensions NNS of IN M NP As RB . SENT Indeed RB , , few JJ employment NN or CC managerial JJ practices NNS have VHP provoked VVN as IN much JJ public JJ furore NN , , particularly RB when WRB no DT economic JJ rationale NN is VBZ readily RB apparent JJ , , perhaps RB because IN corporate JJ downsizing NN represents VVZ an DT immediate JJ and CC direct JJ threat NN with IN which WDT many JJ working JJ people NNS can MD easily RB identify VV as RB possible JJ in IN their PP$ own JJ cases NNS . SENT Critics NNS also RB claim VVP that IN the DT current JJ spate NN of IN M NP As RB are VBP resulting VVG not RB only RB in IN massive JJ lay VVD offs NNS but CC also RB in IN financial JJ exclusion NN for IN an DT increasing VVG number NN of IN communities NNS whose WP$ branches NNS are VBP closed VVN and CC reduced VVN personal JJ service NN without IN any DT corresponding JJ reductions NNS in IN service NN fees NNS and CC other JJ charges NNS . SENT In IN addition NN , , mergers NNS of IN large JJ banks NNS lead VVP to TO a DT concentration NN of IN market NN power NN and CC less JJR competition NN , , and CC small JJ businesses NNS , , which WDT generate VVP most JJS employment NN around IN the DT world NN , , have VHP greater JJR difficulty NN accessing VVG business NN loans NNS . SENT Observers NNS also RB note VVP that IN , , while IN merger NN related VVN lay VVD offs NNS can MD generate VV cost NN savings NNS , , this DT may MD be VB at IN the DT risk NN of IN disrupting VVG operations NNS , , leaving VVG staff NN adrift RB and CC the DT company NN unable JJ to TO respond VV to TO new JJ threats NNS or CC opportunities NNS . SENT Another DT development NN closely RB associated VVN with IN lay VVD offs NNS outsourcing VVG operations NNS may MD be VB cheaper JJR , , but CC can MD also RB result VV in IN a DT loss NN of IN quality NN control NN . SENT For IN many JJ management NN observers NNS , , the DT way NN in IN which WDT the DT public JJ debate NN about IN mass JJ retrenchments NNS associated VVN with IN corporate JJ restructuring NN has VHZ been VBN framed VVN is VBZ instructive JJ . SENT Managerial JJ autonomy NN is VBZ generally RB seen VVN to TO be VB a DT necessary JJ element NN of IN organizational JJ decision NN making NN . SENT the DT argument NN that IN businesses NNS are VBP over RB regulated VVN is VBZ these DT days NNS often RB effective JJ , , even RB in IN countries NNS with IN traditions NNS of IN emphasizing VVG social JJ responsibility NN among IN corporate JJ objectives NNS . SENT However RB , , a DT growing VVG number NN of IN commentators NNS have VHP begun VVN to TO question VV the DT concept NN of IN managerial JJ decision NN making VVG autonomy NN when WRB this DT results NNS in IN externalities NNS that WDT must MD be VB coped VVN with IN at IN public JJ cost NN , , through IN increased VVN unemployment NN insurance NN expenditure NN . SENT Moreover RB , , a DT growing VVG number NN of IN political JJ figures NNS , , activists NNS and CC reporters NNS have VHP begun VVN to TO highlight VV an DT apparent JJ link NN between IN the DT negative JJ consequences NNS for IN employees NNS of IN mass NN lay VVD offs NNS and CC the DT simultaneously RB positive JJ repercussions NNS for IN senior JJ managers NNS of IN increases NNS in IN the DT value NN of IN executive JJ stock NN options NNS . SENT The DT fact NN that IN financial JJ markets NNS have VHP historically RB rewarded VVN companies NNS that WDT engage VVP in IN downsizing NN has VHZ only RB fuelled VVN the DT perception NN that IN the DT misery NN of IN ordinary JJ workers NNS and CC the DT financial JJ success NN of IN management NN and CC owners NNS are VBP inescapably RB connected VVN . SENT Faced VVN with IN so RB much JJ criticism NN , , many JJ restructuring NN companies NNS have VHP begun VVN to TO try VV to TO appear VV more RBR concerned VVN about IN workers NNS who WP lose VVP their PP$ jobs NNS , , and CC to TO move VV the DT focus NN of IN the DT debate NN about IN downsizing NN from IN increases NNS in IN stock NN prices NNS or CC executive JJ compensation NN to TO the DT more RBR legitimate JJ ground NN of IN ensuring VVG corporate JJ competitiveness NN or CC organizational JJ survival NN . SENT Such JJ defences NNS of IN downsizing NN , , however RB , , tend VVP to TO be VB coupled VVN with IN statements NNS defending VVG managerial JJ autonomy NN and CC rejecting VVG the DT need NN for IN public JJ scrutiny NN . SENT M NP A NP proponents NNS do VVP not RB dispute VV the DT immediate JJ negative JJ impact NN on IN jobs NNS . SENT They PP argue VVP instead RB that IN the DT focus NN on IN short JJ term NN job NN losses NNS in IN individual JJ firms NNS ignores VVZ restructuring VVG s PP contribution NN to TO economic JJ health NN and CC long JJ term NN economy NN wide JJ employment NN growth NN . SENT Job NN reductions NNS in IN the DT short JJ term NN are VBP the DT necessary JJ price NN of IN restructuring VVG excess JJ costs NNS out IN of IN a DT blotted VVN financial JJ services NNS sector NN , , the DT result NN of IN which WDT should MD be VB increased VVN efficiency NN and CC eventual JJ benefits NNS in IN the DT form NN of IN economy NN wide JJ employment NN growth NN . SENT Historically RB , , M NP As RB have VHP been VBN considered VVN synonymous JJ with IN economic JJ booms NNS , , part NN of IN a DT virtuous JJ cycle NN in IN which WDT rising JJ stock NN prices NNS preceded VVN an DT acceleration NN of IN inter VV firm NN consolidation NN . SENT The DT reverse NN , , such JJ as IN the DT 1930 CD s PP Depression NP , , the DT 1973 CD Oil NP Shock NP and CC the DT Financial NP Crash NP of IN 1987 CD usually RB put VVN an DT abrupt JJ brake NN on IN such JJ consolidation NN . SENT The DT banking NN and CC financial JJ services NNS sector NN is VBZ not RB likely JJ to TO be VB generating VVG additional JJ employment NN in IN the DT coming JJ years NNS . SENT This DT has VHZ already RB ceased VVN to TO be VB the DT case NN in IN some DT countries NNS and CC the DT current JJ wave NN of IN M NP As RB is VBZ increasing VVG the DT rate NN of IN staff NN cuts NNS . SENT While IN the DT disappearance NN of IN banking NN institutions NNS at IN the DT end NN of IN the DT 1980 CD s PP mainly RB involved VVD bankruptcies NNS or CC the DT takeover NN of IN distressed JJ firms NNS , , contemporary JJ M NP As IN mostly RB relate VV to TO healthy JJ companies NNS and CC have VHP two CD primary JJ motives NNS . SENT the DT need NN to TO cut VV costs NNS , , requiring VVG job NN reductions NNS , , especially RB through IN substantial JJ pruning VVG of IN branch NN networks NNS . SENT and CC diversification NN strategies NNS to TO ensure VV revenue NN growth NN . SENT Such JJ diversification NN can MD be VB geographic JJ , , by IN product NN or CC a DT mixture NN . SENT Beyond IN the DT acquisition NN of IN a DT banking NN company NN , , product NN diversification NN can MD also RB be VB achieved VVN by IN acquiring VVG only JJ specific JJ operations NNS of IN another DT bank NN or CC the DT financial JJ interests NNS of IN a DT non JJ bank NN company NN . SENT This DT relatively RB recent JJ trend NN will MD certainly RB grow VV in IN coming VVG years NNS . SENT It PP is VBZ in IN fact NN among IN the DT core JJ subjects NNS addressed VVN by IN banks NNS in IN their PP$ strategic JJ debates NNS . SENT Would MD it PP be VB preferable JJ to TO be VB involved VVN in IN as IN many JJ financial JJ products NNS as IN possible JJ and CC pursue VV global JJ player NN ambitions NNS , , or CC , , on IN the DT contrary NN , , should MD a DT niche NN strategy NN be VB adopted VVN . SENT Many JJ major JJ American JJ banks NNS , , having VHG massively RB withdrawn VVN from IN outside IN their PP$ home NN market NN up RB until IN the DT 1990 CD s PP , , now RB seem VVP to TO have VH adopted VVN a DT strategy NN of IN acquisition NN to TO widen VV their PP$ product NN lines NNS as IN a DT prelude NN to TO a DT new JJ international JJ foray NN . SENT The DT adoption NN of IN a DT market NN economy NN by IN many DT previously RB socialist JJ countries NNS and CC their PP$ entry NN , , as RB well RB as RB that IN of IN other JJ emerging VVG economies NNS , , into IN the DT international JJ financial JJ market NN system NN may MD explain VV this DT trend NN to TO some DT extent NN . SENT In IN Europe NP , , the DT prospect NN of IN the DT euro NP has VHZ unified VVN financial JJ markets NNS , , accelerated VVD the DT concentration NN of IN teams NNS and CC reduced VVD the DT weight NN and CC number NN of IN specialist NN economists NNS . SENT Previously RB it PP was VBD indispensable JJ for IN big JJ international JJ investment NN banks NNS to TO have VH the DT opinions NNS of IN country NN analysts NNS for IN each DT country NN in IN the DT Euro NP zone NN before IN formulating VVG investment NN strategies NNS . SENT Today NN economic JJ research NN in IN the DT majority NN of IN such JJ banks NNS is VBZ entrusted VVN to TO a DT reduced JJ number NN of IN analysts NNS responsible JJ for IN following VVG developments NNS across IN the DT zone NN as IN a DT whole NN . SENT It PP is VBZ important JJ to TO underline VV that IN , , at IN the DT European JJ Union NP level NN , , the DT Acquired VVN Rights NP Directive NN , , revised VVN in IN 1998 CD , , provides VVZ for IN the DT permanence NN of IN an DT employment NN contract NN even RB if IN one CD of IN the DT parties NNS to TO the DT contract NN the DT employer NN may MD have VH changed VVN , , in IN the DT event NN that IN enterprise NN ownership NN is VBZ transferred VVN in IN full JJ or CC in IN part NN . SENT The DT Directive NN aims VVZ at IN ensuring VVG continuity NN in IN the DT employment NN relations NNS of IN economic JJ undertakings NNS in IN the DT event NN of IN structural JJ changes NNS such JJ as IN those DT ushered VVN in IN by IN an DT acquisition NN . SENT The DT new JJ employer NN is VBZ obliged VVN to TO continue VV to TO employ VV all PDT the DT staff NN of IN the DT acquired VVN undertaking NN on IN the DT same JJ conditions NNS as IN those DT agreed VVN between IN staff NN and CC the DT seller NN . SENT The DT European NP Court NP of IN Justice NP has VHZ interpreted VVN these DT provisions NNS in IN terms NNS that WDT are VBP mostly RB favourable JJ to TO employees NNS . SENT The DT financial JJ sector NN contributes VVZ significantly RB to TO job NN creation NN at IN two CD levels NNS . SENT direct JJ employment NN and CC jobs NNS created VVD indirectly RB by IN the DT activities NNS of IN the DT sector NN . SENT To TO put VV this DT contribution NN into IN perspective NN , , a DT Canadian JJ study NN 48 CD estimates NNS that DT banking NN in IN Canada NP supports VVZ some DT 380 CD , , 000 CD jobs NNS about IN 3 CD . SENT 4 CD per IN cent NN of IN private JJ sector NN employment NN , , while IN financial JJ services NNS as IN a DT whole JJ support NN just RB over IN 1 CD . SENT 2 CD million CD jobs NNS 10 CD . SENT 7 CD per IN cent NN of IN private JJ sector NN employment NN . SENT Banks NNS and CC their PP$ subsidiaries NNS directly RB employ VVP over IN 221 CD , , 000 CD Canadians NNS , , while IN financial JJ services NNS as IN a DT whole NN directly RB employ VVP around IN 500 CD , , 000 CD people NNS , , 4 LS . SENT 3 CD per IN cent NN of IN business NN sector NN employment NN . SENT The DT bank NN workforce NN alone RB constitutes VVZ 1 CD . SENT 5 CD per IN cent NN of IN Canadian JJ employment NN , , spread VVN across IN the DT country NN in IN rural JJ and CC urban JJ areas NNS . SENT Data NP analysis NN shows VVZ that DT employment NN within IN banking NN grew VVD from IN 212 CD , , 900 CD in IN 1994 CD to TO over IN 221 CD , , 000 CD in IN 1997 CD , , but CC growth NN was VBD not RB constant JJ . SENT Moreover RB , , future JJ job NN growth NN is VBZ uncertain JJ and CC dependent JJ , , at IN least JJS in IN part NN , , on IN the DT policy NN and CC regulatory JJ framework NN resulting VVG from IN legislative JJ reform NN currently RB under IN consideration NN . SENT The DT regulatory JJ framework NN sets VVZ the DT context NN within IN which WDT banks NNS compete VVP and CC determines VVZ , , in IN part NN , , the DT industry NN s PP ability NN to TO contribute VV to TO employment NN and CC economic JJ prosperity NN . SENT Direct JJ employment NN figures NNS tell VVP only JJ part NN of IN the DT story NN . SENT Financial JJ services NNS employment NN in IN Canada NP as IN elsewhere RB has VHZ an DT impact NN that WDT goes VVZ far RB beyond IN a DT simple JJ headcount NN , , and CC bank NN employees NNS are VBP learning VVG new JJ ways NNS of IN working VVG , , adapting VVG their PP$ skills NNS and CC abilities NNS to TO meet VV new JJ business NN needs NNS , , and CC mastering VVG and CC using VVG new JJ technology NN . SENT Financial JJ institutions NNS are VBP high JJ value NN added VVD employers NNS , , given VVN the DT evolution NN of IN products NNS and CC services NNS offered VVN by IN the DT industry NN in IN response NN to TO changing VVG customer NN preferences NNS . SENT The DT financial JJ sector NN is VBZ producing VVG higher JJR value NN added VVD products NNS and CC services NNS , , such JJ as IN money NN management NN and CC risk NN management NN services NNS which WDT are VBP increasingly RB being VBG delivered VVN to TO customers NNS using VVG electronic JJ delivery NN channels NNS . SENT Consequently RB , , financial JJ institutions NNS must MD recruit VV employees NNS with IN higher JJR education NN and CC skill NN levels NNS or CC upgrade VV the DT skills NNS of IN existing VVG employees NNS . SENT In IN banking NN , , this DT shift NN towards IN higher JJR value NN added VVD production NN has VHZ a DT substantial JJ effect NN on IN employment NN . SENT The DT workforce NN structures NNS of IN most JJS banks NNS in IN developed JJ countries NNS have VHP changed VVN dramatically RB in IN recent JJ years NNS , , reflecting VVG the DT market NN transformations NNS currently RB under IN way NN driven VVN by IN technology NN , , globalization NN , , increased VVD competition NN and CC changing VVG customer NN demand NN . SENT Industry NN data NNS show VVP a DT flattening VVG in IN organization NN structure NN and CC a DT significant JJ shift NN to TO higher JJR value NN added VVD employment NN . SENT From IN 1990 CD to TO 1996 CD , , employment NN among IN executives NNS decreased VVN by IN 13 CD . SENT 6 CD per IN cent NN , , middle JJ management NN increased VVN by IN 15 CD . SENT 5 CD per IN cent NN , , professionals NNS increased VVD by IN 17 CD . SENT 4 CD per IN cent NN and CC clerical JJ levels NNS decreased VVN by IN 15 CD . SENT 9 CD per IN cent NN . SENT The DT growth NN among IN middle JJ management NN and CC professionals NNS represents VVZ growth NN in IN knowledge NN based VVN , , higher RBR paid VVN positions NNS and CC demonstrates VVZ a DT shift NN from IN routine JJ , , transaction NN based VVN jobs NNS to TO knowledge NN intensive JJ jobs NNS . SENT This DT is VBZ reflected VVN in IN bank NN payrolls NNS , , which WDT increased VVD from IN C $ 9 CD . SENT 4 CD billion CD in IN 1994 CD to TO C $ 12 CD . SENT 16 CD billion CD in IN 1997 CD . SENT Significant JJ growth NN at IN the DT middle JJ management NN level NN results NNS , , at IN least JJS in IN part NN , , from IN the DT retraining VVG and CC redeployment NN of IN employees NNS whose WP$ jobs NNS have VHP been VBN eliminated VVN . SENT Financial JJ institutions NNS also RB generate VVP numerous JJ jobs NNS indirectly RB through IN their PP$ participation NN in IN the DT economy NN . SENT A DT study NN by IN The DT Boston NP Consulting NP Group NP , , examining VVG the DT indirect JJ employment NN impact NN across IN Canada NP , , confirms VVZ the DT significant JJ ripple JJ employment NN effects NNS generated VVN by IN financial JJ services NNS , , estimating VVG that IN for IN every DT employee NN in IN financial JJ services NNS another DT job NN is VBZ created VVN with IN a DT supplier NN , , a DT customer NN or CC elsewhere RB within IN the DT same JJ area NN . SENT This DT national JJ study NN estimated VVN that IN the DT financial JJ sector NN indirectly RB employed VVN some DT 730 CD , , 000 CD people NNS in IN 1996 CD , , providing VVG total JJ direct JJ and CC indirect JJ employment NN for IN just RB over IN 1 CD . SENT 2 CD million CD people NNS . SENT Much RB of IN its PP$ indirect JJ impact NN on IN employment NN is VBZ as IN a DT major JJ purchaser NN in IN 1992 CD , , the DT banking NN industry NN spent VVN over IN C NP 6 CD . SENT 5 CD billion CD on IN goods NNS and CC services NNS . SENT These DT indirect JJ purchases NNS generated VVD approximately RB 46 CD , , 000 CD jobs NNS in IN supplier NN industries NNS . SENT The DT financial JJ sector NN spent VVD nearly RB C $ 30 CD billion CD on IN goods NNS and CC services NNS , , generating VVG approximately RB 247 CD , , 000 CD jobs NNS . SENT For IN some DT supplier NN industries NNS , , the DT indirect JJ impact NN of IN financial JJ sector NN purchases NNS is VBZ particularly RB important JJ . SENT It PP has VHZ been VBN estimated VVN that IN financial JJ sector NN purchases NNS accounted VVD for IN over IN 5 CD per IN cent NN of IN employment NN in IN 13 CD different JJ supplier NN industries NNS in IN 1992 CD , , including VVG other JJ business NN service NN industries NNS which WDT include VVP computer NN services NNS 12 CD . SENT 3 CD per IN cent NN , , postal JJ services NNS 11 CD . SENT 5 CD per IN cent NN , , real JJ estate NN management NN 9 CD . SENT 8 CD per IN cent NN , , telecommunications NN 8 CD . SENT 6 CD per IN cent NN and CC printing NN and CC publishing VVG 8 CD . SENT 2 CD per IN cent NN . SENT Employees NNS in IN the DT financial JJ sector NN and CC its PP$ supplier NN industries NNS spend VVP wages NNS and CC salaries NNS that WDT stimulate VV economic JJ activity NN . SENT Banks NNS and CC other JJ financial JJ services NNS providers NNS reinvest VVP some DT of IN their PP$ profits NNS , , inducing VVG more RBR economic JJ activity NN . SENT Dungan NP estimated VVD that IN in IN 1996 CD induced VVN activity NN of IN this DT kind NN resulted VVD in IN the DT creation NN of IN 150 CD , , 000 CD jobs NNS by IN banks NNS and CC banking NN suppliers NNS , , of IN a DT total NN of IN 500 CD , , 000 CD jobs NNS created VVN by IN the DT entire JJ financial JJ sector NN and CC its PP$ suppliers NNS . SENT Employment NN is VBZ generated VVN not RB only RB through IN purchasing VVG activities NNS but CC also RB through IN direct JJ investment NN in IN the DT economy NN for IN example NN , , in IN the DT construction NN industry NN . SENT Direct JJ investment NN activity NN is VBZ estimated VVN to TO have VH generated VVN just RB under IN 50 CD , , 000 CD jobs NNS in IN 1992 CD , , in IN addition NN to TO those DT noted VVN above JJ . SENT Financial JJ institutions NNS also RB support VVP job NN creation NN by IN providing VVG credit NN and CC other JJ financial JJ services NNS to TO businesses NNS , , by IN financing NN projects NNS , , through IN mortgage NN lending NN which WDT facilitates VVZ housing NN construction NN and CC through IN other JJ investments NNS in IN job NN creating VVG activities NNS . SENT Bank NN lending NN to TO small JJ and CC medium NN sized VVD enterprises NNS alone RB supports VVZ companies NNS that WDT provide VVP over IN 6 CD million CD Canadian JJ jobs NNS . SENT As RB with IN direct JJ employment NN , , many JJ jobs NNS being VBG generated VVN by IN supplier NN firms NNS are VBP higher JJR value NN added VVD jobs NNS . SENT As IN financial JJ institutions NNS have VHP increasingly RB sought VVN to TO improve VV their PP$ efficiency NN in IN the DT face NN of IN growing VVG competition NN , , some RB in IN house NN activities NNS have VHP been VBN outsourced VVN to TO more JJR efficient JJ suppliers NNS , , creating VVG jobs NNS among IN suppliers NNS of IN goods NNS and CC services NNS in IN such JJ high JJ wage NN sectors NNS as IN computer NN services NNS , , telecommunications NNS , , law NN and CC accounting NN . SENT M NP As RB imply VVP immediate JJ and CC direct JJ job NN losses NNS . SENT . SENT . SENT A DT study NN on IN the DT efficiency NN effects NNS of IN bank NN mergers NNS in IN the DT United NP States NPS , , 49 CD which WDT summarizes VVZ nine CD case NN studies NNS , , reports NNS that IN all DT nine CD mergers NNS resulted VVN in IN significant JJ cost NN cutting VVG in IN line NN with IN pre NP merger NN projections NNS , , although IN only RB four CD of IN the DT mergers NNS were VBD clearly RB successful JJ in IN improving VVG cost NN efficiency NN . SENT As RB for IN employment NN , , the DT largest JJS volume NN of IN cost NN reductions NNS was VBD generally RB associated VVN with IN staff NN reductions NNS and CC data NNS processing VVG systems NNS and CC operations NNS . SENT Payroll NN reductions NNS often RB accounted VVD for IN over IN 50 CD per IN cent NN of IN the DT total JJ cost NN reduction NN and CC in IN at IN least JJS one CD case NN the DT reduction NN in IN staff NN costs NNS accounted VVD for IN nearly RB two CD thirds NNS of IN the DT total NN . SENT In IN all DT cases NNS , , the DT savings NNS achieved VVN were VBD of IN the DT order NN of IN 30 CD to TO 40 CD per IN cent NN of IN the DT non JJ interest NN expenses NNS of IN the DT target NN . SENT All DT of IN the DT merged JJ firms NNS indicated VVN that IN the DT actual JJ savings NNS either CC met VVN or CC exceeded VVN expectations NNS . SENT Most JJS of IN the DT firms NNS projected VVN that IN the DT cost NN savings NNS would MD be VB fully RB achieved VVN within IN three CD years NNS after IN the DT merger NN , , with IN the DT majority NN of IN the DT savings NNS being VBG achieved VVN after IN two CD years NNS . SENT Box NP 3 CD . SENT 3 LS . SENT Union NN views NNS on IN the DT effects NNS of IN M NP As IN The DT European JJ banking NN sector NN has VHZ witnessed VVN job NN losses NNS since IN the DT beginning NN of IN the DT 1990 CD s PP . SENT The DT impact NN of IN such JJ job NN losses NNS has VHZ been VBN greater JJR in IN northern JJ than IN in IN southern JJ Europe NP , , although IN overall RB the DT decline NN in IN employment NN has VHZ been VBN somewhat RB offset VVN by IN growth NN in IN specialized JJ financial JJ service NN firms NNS , , such JJ as IN those DT providing VVG consumer NN credit NN . SENT Although IN employment NN in IN the DT insurance NN sector NN has VHZ generally RB been VBN stable JJ due RB to TO growth NN related JJ to TO technological JJ based VVN productivity NN gains NNS , , a DT UNI NN Europa NN study NN reports NNS that IN almost RB 130 CD , , 000 CD net JJ jobs NNS were VBD eliminated VVN as IN a DT result NN of IN M NP As IN in IN the DT European JJ financial JJ services NNS during IN the DT 1990 CD s PP . SENT While IN it PP is VBZ often RB difficult JJ to TO distinguish VV the DT repercussions NNS of IN M NP As IN from IN those DT of IN other JJ initiatives NNS aimed VVN at IN responding VVG to TO competitive JJ pressures NNS or CC from IN the DT impact NN of IN information NN and CC communication NN technologies NNS , , it PP is VBZ clear JJ , , nonetheless RB , , that IN these DT factors NNS are VBP often RB not RB unconnected JJ and CC that WDT merger NN decisions NNS set VVN off IN a DT dynamic JJ process NN of IN workforce NN restructuring NN . SENT The DT nature NN and CC quality NN of IN employment NN have VHP also RB changed VVN in IN the DT last JJ few JJ years NNS . SENT Employment NN reductions NNS have VHP particularly RB affected VVN branch NN networks NNS and CC administrative JJ functions NNS . SENT Older JJR workers NNS and CC women NNS workers NNS with IN traditional JJ banking NN skills NNS , , who WP are VBP not RB easily RB transferable JJ to TO new JJ centralized JJ functions NNS such JJ as IN those DT required VVN in IN call NN centres NNS , , are VBP the DT most RBS affected VVN by IN these DT changes NNS . SENT Product NN standardization NN has VHZ generated VVN new JJ functions NNS requiring VVG high JJ volume NN sales NNS to TO customers NNS without IN the DT necessity NN of IN traditional JJ banking NN qualifications NNS . SENT When WRB new JJ jobs NNS are VBP created VVN , , they PP often RB require VVP management NN and CC IT PP skills NNS or CC other JJ specialized JJ abilities NNS that IN the DT above JJ groups NNS of IN workers NNS do VVP not RB possess VV . SENT Jobs NNS have VHP also RB been VBN affected VVN by IN another DT important JJ trend NN . SENT the DT growing VVG outsourcing NN of IN certain JJ functions NNS , , such JJ as IN IT PP , , cleaning NN and CC maintenance NN that WDT used VVD to TO be VB performed VVN internally RB . SENT M NP As RB have VHP been VBN found VVN to TO accelerate VV such JJ corporate JJ practices NNS because IN enterprises NNS tend VVP to TO review VV their PP$ entire JJ cost NN structure NN around IN M NP As IN with IN a DT view NN to TO identifying VVG the DT maximum JJ savings NNS possible JJ . SENT The DT working VVG conditions NNS of IN subcontracted VVN workers NNS performing VVG such JJ outsourced NN functions NNS often RB differ VVP to TO those DT of IN staff NN in IN direct JJ employment NN . SENT Source NN . SENT UNI NN Europa NN study NN , , analysis NN of IN responses NNS , , 2000 CD . SENT Blaustein NP and CC Dressen NP 50 CD noted VVD that DT mergers NNS aim VVP at IN scale NN economies NNS , , so RB are VBP usually RB followed VVN by IN the DT merging VVG of IN services NNS , , the DT idea NN being VBG to TO retain VV the DT best JJS structure NN , , shifting VVG staff NN as IN needed JJ and CC making VVG others NNS redundant JJ . SENT American JJ bank NN mergers NNS are VBP commonplace JJ and CC usually RB involve VV retrenchment NN . SENT Integra NP Financial NP Corp NP . SENT , , the DT consolidation NN of IN Union NP National NP Bank NP and CC Pennbancorp NP , , led VVD to TO 12 CD per IN cent NN staff NN cuts NNS . SENT Several JJ factors NNS favoured VVD such JJ concentration NN trends NNS particularly RB overcapacity NN , , cost NN cutting NN and CC profit NN seeking VVG initiatives NNS and CC banking NN sector NN decline NN while IN the DT implementation NN of IN the DT Interstate NP Banking NP Act NP lifted VVD some DT restrictions NNS . SENT The DT number NN of IN commercial JJ banks NNS fell VVD from IN 14 CD , , 417 CD to TO 10 CD , , 054 CD in IN the DT decade NN 1985 CD 95 CD , , down RB 30 CD per IN cent NN . SENT Banks NNS also RB lost VVD ground NN to TO non JJ banks NNS like IN General NP Electric NP , , General NP Motors NPS and CC American NP Express NP which WDT were VBD strong JJ competitors NNS not RB carrying VVG branch NN networks NNS . SENT Yet RB until IN the DT mid JJ 1990 CD s PP at IN least JJS , , the DT consolidation NN of IN American JJ banking NN was VBD accompanied VVN by IN substantial JJ growth NN in IN the DT number NN of IN branches NNS and CC commercial JJ offices NNS up IN 25 CD per IN cent NN between IN 1980 CD and CC 1994 CD , , and CC up RB 7 CD . SENT 3 CD per IN cent NN between IN 1988 CD 94 CD , , respectively RB , , partly RB because IN of IN fewer JJR restrictions NNS on IN the DT expansion NN of IN banking NN activities NNS especially RB after IN the DT adoption NN of IN the DT Reagle NP Neal NP Interstate NP Banking NP and CC Branching VVG Efficiency NN Act NN of IN 1994 CD . SENT Nonetheless RB , , employment NN levels NNS declined VVD approximately RB 5 CD per IN cent NN between IN 1984 CD and CC 1994 CD , , because RB of IN the DT development NN of IN technology NN based VVN distribution NN channels NNS and CC greater JJR automation NN . SENT Thus RB , , even RB before IN strong JJ growth NN in IN telephone NN and CC Internet NN based VVN banking NN , , employment NN in IN American JJ banks NNS was VBD declining VVG . SENT The DT 1995 CD merger NN between IN Chemical NP Bank NP and CC Chase NP Manhattan NP led VVD to TO the DT elimination NN of IN 12 CD , , 000 CD jobs NNS of IN a DT total NN of IN 75 CD , , 000 CD in IN the DT combined JJ bank NN . SENT Similarly RB , , the DT 1998 CD acquisition NN of IN the DT Bank NP of IN America NP by IN Nations NPS Bank NP included VVD plans NNS for IN the DT lay VVD off RP of IN 18 CD , , 000 CD workers NNS by IN 2002 CD . SENT In IN western JJ Europe NP , , the DT number NN of IN bank NN branches NNS and CC personnel NNS increased VVN in IN tandem NN with IN the DT number NN of IN organizations NNS up RB to TO 1996 CD 97 CD , , when WRB both DT started VVD to TO fall VV slowly RB . SENT The DT aggregate JJ figures NNS do VVP not RB , , of IN course NN , , capture VV the DT wide JJ variations NNS between IN different JJ EU NP countries NNS . SENT The DT employment NN situation NN in IN the DT financial JJ services NNS would MD be VB worse JJR were VBD it PP not RB for IN some DT growth NN in IN specialized JJ services NNS such JJ as IN consumer NN credit NN . SENT Employment NN in IN insurance NN has VHZ , , on IN balance NN , , remained VVD largely RB stable JJ , , with IN growth NN in IN the DT sector NN compensating VVG for IN technology NN based VVN productivity NN gains NNS . SENT There EX have VHP , , however RB , , been VBN substantial JJ job NN losses NNS in IN individual JJ countries NNS and CC specific JJ companies NNS . SENT Moreover RB , , overall JJ figures NNS seeming JJ to TO indicate VV lower JJR job NN losses NNS in IN insurance NN as IN compared VVN to TO banking NN cannot NN be VB taken VVN at IN face NN value NN since IN in IN neither DT industry NN do VVP national JJ statistics NNS differentiate VV between IN full JJ time NN , , part NN time NN and CC temporary JJ jobs NNS . SENT While IN aggregate JJ employment NN statistics NNS seem VVP relatively RB stable JJ , , counter JJ intuition NN indicates VVZ erosion NN in IN the DT quality NN of IN employment NN , , with IN much RB of IN the DT growth NN being VBG in IN atypical JJ , , temporary JJ and CC part NN time NN work NN that WDT is VBZ increasingly RB replacing VVG traditional JJ full JJ time NN employment NN . SENT In IN 1994 CD , , the DT share NN of IN credit NN institutions NNS commercial JJ and CC savings NN banks NNS , , and CC mutual JJ organizations NNS in IN overall JJ employment NN in IN the DT then RB 12 CD Member NP States NPS of IN the DT European NP Union NP was VBD roughly RB comparable JJ across IN the DT region NN around IN 2 CD per IN cent NN , , except IN for IN Luxembourg NP where WRB the DT figure NN was VBD closer JJR to TO 9 CD per IN cent NN mostly RB commercial JJ banks NNS . SENT Sectoral JJ specialists NNS predict VVP the DT disappearance NN of IN approximately RB 300 CD , , 000 CD banking NN jobs NNS between IN 1999 CD and CC 2002 CD as IN a DT result NN of IN continuing VVG sectoral JJ concentration NN due JJ to TO M NP As IN . SENT There EX are VBP growing VVG concerns NNS at IN the DT massive JJ job NN losses NNS and CC increased VVN potential JJ for IN social JJ instability NN brought VVD about RB by IN such JJ wholesale JJ restructuring NN . SENT The DT financial JJ sector NN is VBZ at IN the DT centre NN of IN this DT process NN , , as IN both CC an DT agent NN and CC a DT beneficiary NN of IN change NN . SENT Conservative JJ estimates NNS indicate VVP at IN least JJS 130 CD , , 000 CD finance NN jobs NNS may MD have VH disappeared VVN in IN western JJ Europe NP as IN a DT result NN of IN M NP As IN over IN the DT past JJ ten CD years NNS , , and CC similar JJ numbers NNS are VBP projected VVN to TO vanish VV with IN increasing VVG M NP A DT driven VVN sectoral JJ consolidation NN over IN the DT next JJ few JJ years NNS as IN the DT current JJ wave NN of IN M NP As RB continues VVZ . SENT Such JJ downsizing NN reflects VVZ recent JJ changes NNS in IN the DT sector NN , , including VVG a DT continuing VVG shift NN from IN branch NN based VVN business NN to TO Internet NN and CC phone NN accounts NNS , , that WDT have VHP changed VVN the DT nature NN of IN bank NN work NN , , altogether RB costing VVG an DT estimated JJ 200 CD , , 000 CD additional JJ jobs NNS not RB directly RB related VVN to TO those DT lost VVN through IN M NP As IN during IN the DT same JJ period NN . SENT Table NN 3 CD . SENT 8 CD . SENT Total JJ number NN of IN branches NNS and CC bank NN personnel NNS in IN 15 CD EU NP countries NNS 1993 CD 97 CD 1993 JJ 1995 CD 1996 CD 1997 CD Savings NP banks NNS . SENT Branches NNS Personnel NP 57 CD 885 CD 639 JJ 000 CD 56 CD 020 JJ 682 CD 400 CD 54 JJ 670 CD 748 CD 500 JJ 54 CD 650 CD 740 CD 000 CD Cooperative JJ banks NNS . SENT Branches NNS Personnel NP 49 CD 060 CD 392 JJ 000 CD 52 CD 300 JJ 398 CD 400 CD 56 JJ 020 CD 501 CD 500 JJ 56 CD 000 CD 500 CD 000 CD Commercial JJ banks NNS . SENT Branches NNS Personnel NP 95 CD 960 CD 1 CD 746 JJ 000 CD 95 CD 880 JJ 1 CD 719 CD 300 JJ 96 CD 570 CD 1 CD 713 JJ 800 CD 96 CD 500 JJ 1 CD 700 CD 00 CD Total JJ . SENT Branches NNS Personnel NP 202 CD 905 CD 2 CD 777 JJ 700 CD 204 CD 200 JJ 2 CD 800 CD 100 JJ 207 CD 260 CD 2 CD 963 JJ 800 CD 207 CD 150 JJ 2 CD 940 CD 000 CD Source NN . SENT Heikki NP Koskenkyl NP . SENT Threats NNS and CC opportunities NNS for IN today NN s PP European JJ banks NNS Bank NP of IN Finland NP , , 2000 CD , , paper NN submitted VVD to TO the DT Institute NP of IN Economic NP Affairs NPS Conference NP on IN European NP Retail NP Banking NP , , Geneva NP , , 22 CD 23 CD Feb NN . SENT 2000 CD . SENT Job NN losses NNS have VHP variously RB been VBN estimated VVN from IN 17 CD . SENT 5 CD per IN cent NN for IN the DT Bayerische NP Hypo NN und NN Vereinsbank NP HVB NP to TO 23 CD per IN cent NN for IN the DT Union NP de NP Banques NP Suisses NP Soci NP t NN de NP Banque NP Suisse NP mergers NNS . SENT In IN reality NN , , actual JJ job NN losses NNS in IN the DT new JJ UBS NP have VHP been VBN much RB smaller JJR than IN that DT . SENT Following VVG a DT later JJR acquisition NN of IN Bank NP Austria NP by IN HVB NP in IN July NP 2000 CD , , it PP is VBZ estimated VVN that IN a DT minimum NN of IN 1 CD , , 300 CD jobs NNS , , in IN addition NN to TO a DT significant JJ number NN of IN branches NNS , , will MD be VB eliminated VVN from IN Bank NP Austria NP s PP domestic JJ retail JJ banking NN with IN the DT aim NN of IN realizing VVG annual JJ savings NNS of IN 500 CD million CD euros NNS . SENT Additional JJ cost NN savings NNS were VBD projected VVN in IN Switzerland NP where WRB both DT banks NNS own VVP subsidiaries NNS and CC in IN Poland NP where WRB the DT merger NN of IN their PP$ respective JJ subsidiary NN banks NNS would MD give VV birth NN to TO a DT Polish JJ banking NN giant NN . SENT In IN addition NN to TO 875 CD million CD set VVN aside RP as IN a DT retention NN pool NN for IN key JJ PaineWebber NP professionals NNS , , UBS NP has VHZ budgeted VVN 400 CD million CD for IN restructuring NN and CC integration NN costs NNS . SENT In IN 1999 CD , , PaineWebber NP increased VVD its PP$ employees NNS from IN 18 CD , , 452 CD to TO 23 CD , , 175 CD , , its PP$ brokers NNS from IN 7 CD , , 118 CD to TO 8 CD , , 554 CD , , and CC its PP$ branches NNS from IN 307 CD to TO 385 CD . SENT UBS NP is VBZ expected VVN to TO attempt VV to TO extract VV synergies NNS worth IN 425 CD million CD per IN year NN from IN operations NNS . SENT half NN from IN cost NN savings NNS in IN overlapping JJ operations NNS in IN capital NN markets NNS and CC other JJ investment NN banking NN areas NNS and CC the DT rest NN from IN projected JJ revenue NN enhancement NN through IN the DT cross NN selling NN of IN its PP$ traditional JJ products NNS to TO PaineWebber NP clients NNS , , tax NN breaks NNS and CC lower JJR financing NN costs NNS . SENT The DT purchase NN is VBZ apparently RB a DT first JJ step NN towards IN further JJR acquisitions NNS to TO upgrade VV the DT bank NN s PP existing VVG American JJ investment NN banking NN operations NNS . SENT Given VVN the DT announced VVN annual JJ cost NN savings NNS of IN between IN 750 CD million CD and CC 1 CD billion CD , , redundancies NNS at IN DLJ NP , , following VVG its PP$ acquisition NN by IN Swiss JJ banking NN giant NN Cr NP dit NP Suisse NP , , are VBP expected VVN to TO be VB much RB heavier JJR than IN the DT 10 CD per IN cent NN officially RB announced VVD , , although IN deeper JJR cuts NNS are VBP likely JJ to TO be VB tempered VVN by IN a DT labour NN shortage NN on IN Wall NP Street NP and CC little RB overlap VVP in IN operations NNS . SENT The DT new JJ acquisition NN is VBZ to TO be VB integrated VVN with IN another DT subsidiary NN , , Credit NP Suisse NP First NP Boston NP CSFB NP , , to TO strengthen VV the DT group NN s PP investment NN banking NN business NN in IN the DT United NP States NPS . SENT However RB , , as IN the DT two CD firms NNS cater VVP primarily RB to TO institutions NNS and CC inevitably RB therefore RB compete VV for IN the DT same JJ clients NNS , , the DT process NN of IN choosing VVG which WDT equity NN analyst NN stays VVZ or CC which WDT sales NNS team NN keeps VVZ which WDT account NN is VBZ likely JJ to TO be VB contentious JJ in IN all DT but CC the DT few JJ areas NNS where WRB one CD firm NN has VHZ a DT decided VVN edge NN . SENT 51 CD Retention NN incentives NNS for IN key JJ personnel NNS include VVP 1 CD . SENT 2 CD billion CD to TO be VB paid VVN out RP over IN three CD years NNS . SENT An DT additional JJ 2 CD billion CD in IN stock NN options NNS held VVN by IN DLJ NP staff NN will MD only RB be VB exercised VVN according VVG to TO the DT existing JJ schedule NN , , not RB when WRB the DT merger NN is VBZ completed JJ which WDT means VVZ staff NN leaving VVG early RB will MD not RB be VB able JJ to TO benefit VV . SENT Even RB failed VVD M NP As RB can MD provide VV only RB very RB short RB lived VVN respite NN for IN employees NNS . SENT After IN the DT breakdown NN of IN its PP$ merger NN plans NNS with IN Deutsche NP Bank NP , , Dresdner NP immediately RB announced VVD plans NNS to TO shed VV 5 CD , , 000 CD jobs NNS , , or CC 10 CD per IN cent NN of IN its PP$ workforce NN . SENT It PP might MD be VB meagre JJ consolation NN for IN the DT employees NNS concerned VVN to TO reflect VV on IN the DT fact NN that WDT had VHD the DT merger NN been VBN successful JJ the DT combined JJ company NN had VHD planned VVN on IN saving VVG up RP to TO 2 CD . SENT 8 CD billion CD a DT year NN by IN eliminating VVG some DT 16 CD , , 000 CD jobs NNS worldwide RB from IN its PP$ combined JJ workforce NN of IN 142 CD , , 000 CD , , with IN close NN to TO 6 CD , , 000 CD coming VVG from IN their PP$ retail JJ banking NN businesses NNS alone RB . SENT Central JJ elements NNS of IN the DT rationalization NN plan NN envisaged VVD the DT combined JJ bank NN spinning VVG off RP its PP$ relatively RB unprofitable JJ retail JJ operations NNS . SENT Bank NN branches NNS would MD be VB pruned VVN from IN 2 CD , , 500 CD to TO 1 CD , , 700 CD , , and CC the DT rump NN would MD be VB spun VVN off RP into IN a DT new JJ company NN called VVN Bank NP 24 CD , , which WDT would MD become VV Germany NP s VVZ largest JJS retail JJ bank NN . SENT One CD third NN of IN the DT new JJ retail JJ concern NN would MD then RB be VB sold VVN to TO insurance NN giant NN Allianz NP , , a DT major JJ shareholder NN in IN both DT banks NNS , , which WDT would MD thus RB obtain VV a DT ready JJ made VVN distribution NN outlet NN for IN its PP$ insurance NN products NNS , , and CC control NN of IN mutual JJ fund NN manager NN DWS NN , , asset NN manager NN Finanza NP Futuro NP and CC insurance NN company NN Deutscher NP Herold NP in IN the DT swap NN . SENT This DT would MD allow VV Dresdner NP to TO concentrate VV on IN more JJR lucrative JJ wholesale JJ banking NN activities NNS such JJ as IN M NP As IN and CC bond NN issuance NN . SENT Bank NP 24 CD , , meanwhile RB , , would MD be VB floated VVN on IN the DT Frankfurt NP Stock NP Market NP within IN three CD years NNS . SENT The DT sale NN would MD also RB mean VV Deutsche NP Bank NP giving VVG up RP its PP$ booming JJ Internet NN operations NNS , , which WDT already RB have VHP 700 CD , , 000 CD customers NNS . SENT A DT number NN of IN characteristics NNS were VBD especially RB striking JJ in IN this DT instance NN . SENT In IN addition NN to TO the DT determinant JJ role NN of IN Allianz NP in IN the DT merger NN project NN , , as IN the DT single JJ largest JJS shareholder NN in IN both DT Deutsche NP and CC Dresdner NP , , Deutsche NP felt VVD it PP needed VVD to TO secure VV its PP$ position NN in IN its PP$ home NN market NN as IN a DT first JJ step NN towards IN global JJ expansion NN in IN competition NN with IN the DT big JJ bulge NN bracket NN American JJ investment NN banks NNS that WDT dominate VVP the DT M NP A DT advisory JJ services NNS , , debt NN issuance NN and CC corporate JJ financing NN worldwide RB . SENT In IN this DT regard NN , , Deutsche NP had VHD paid VVN 10 CD billion CD two CD years NNS earlier RBR to TO acquire VV Bankers NPS Trust NP but CC the DT market NN judged VVN the DT deal NN over IN costly JJ and CC difficult JJ to TO integrate VV given VVN the DT different JJ corporate JJ cultures NNS . SENT The DT dilemma NN for IN Dresdner NP and CC similar JJ banks NNS is VBZ that IN the DT markets NNS consider VVP them PP too RB big JJ to TO be VB niche NN players NNS and CC too RB small JJ to TO be VB effective JJ in IN increasingly RB globalized VVN markets NNS . SENT This DT market NN evaluation NN is VBZ reflected VVN in IN the DT banks NNS share NN pricing NN which WDT they PP are VBP under IN pressure NN to TO lift VV by IN merging VVG with IN counterparts NNS whose WP$ overlapping JJ branch NN networks NNS would MD make VV it PP possible JJ to TO close VV offices NNS without IN losing VVG customers NNS . SENT Unilateral JJ branch NN closures NNS would MD certainly RB mean VV the DT loss NN of IN such JJ customers NNS to TO rivals NNS with IN nearby JJ branches NNS . SENT Dresdner NP had VHD consequently RB re IN entered VVN difficult JJ merger NN talks NNS with IN Commerzbank NP , , under IN similar JJ pressure NN , , to TO create VV Germany NP s PP second RB largest JJS bank NN . SENT One CD aspect NN of IN the DT deal NN would MD have VH merged VVN the DT two CD banks NNS into IN a DT holding NN company NN , , with IN five CD legally RB separate JJ operating NN companies NNS covering VVG areas NNS such JJ as IN asset NN management NN , , investment NN banking NN and CC retail JJ banking NN . SENT As RB with IN the DT proposed VVN merger NN with IN Deutsche NP , , Allianz NP would MD take VV a DT 40 CD per IN cent NN stake NN in IN the DT retail JJ operation NN and CC a DT 60 CD per IN cent NN majority NN in IN the DT asset NN management NN business NN to TO move VV the DT Munich NP based VVN insurer NN from IN being VBG the DT world NN s PP sixth RB largest JJS asset NN manager NN , , with IN 647 CD billion CD of IN assets NNS under IN management NN to TO having VHG 1 CD , , 025 CD billion CD , , making VVG it PP second JJ only RB to TO UBS NP . SENT The DT closure NN of IN overlapping JJ branches NNS and CC the DT integration NN of IN support NN functions NNS would MD , , as RB in IN the DT merger NN proposal NN with IN Deutsche NP , , result NN in IN job NN losses NNS . SENT These DT new JJ negotiations NNS had VHD also RB ended VVN in IN failure NN by IN July NP 2000 CD , , mainly RB because IN of IN disagreements NNS between IN the DT two CD largest JJS shareholders NNS in IN the DT banks NNS , , Allianz NP 21 CD . SENT 7 CD per IN cent NN of IN Dresdner NP and CC Cobra NN 17 CD per IN cent NN of IN Commerzbank NP , , an DT investment NN group NN headed VVN by IN a DT former JJ Dresdner NP executive NN , , on IN the DT valuation NN of IN each DT bank NN . SENT The DT product NN of IN merging VVG the DT first JJ and CC third JJ ranked VVN Spanish JJ banks NNS , , BSCH NP plans VVZ on IN eliminating VVG about IN 4 CD , , 500 CD jobs NNS between IN 1999 CD and CC 2002 CD . SENT The DT first JJ stage NN of IN BSCH NP s PP downsizing VVG programme NN envisages VVZ 2 CD , , 400 CD voluntary JJ redundancies NNS negotiated VVN with IN trade NN unions NNS before IN the DT merger NN in IN 1999 CD 1 CD , , 300 CD in IN BSCH NP and CC 1 CD , , 100 CD from IN the DT BS NP group NN . SENT Between IN 1991 CD and CC 1997 CD , , the DT Spanish JJ banking NN sector NN shed VVD 23 CD , , 000 CD posts NNS , , mainly RB through IN early JJ retirement NN schemes NNS . SENT Spanish JJ savings NNS banks NNS are VBP involved VVN in IN a DT similar JJ consolidation NN process NN , , and CC in IN 1999 CD three CD regional JJ financial JJ institutions NNS in IN Galicia NP merged VVD , , although IN continuing VVG to TO retain VV their PP$ own JJ brands NNS in IN their PP$ respective JJ operating NN zones NNS . SENT In IN Switzerland NP , , UBS NP and CC SBS NP foresaw VVD reductions NNS of IN about IN 7 CD , , 000 CD jobs NNS 1 CD , , 800 CD as IN possible JJ redundancies NNS , , of IN a DT total NN of IN 13 CD , , 000 CD in IN the DT group NN worldwide RB , , according VVG to TO a DT 1999 CD management NN announcement NN . SENT However RB , , information NN provided VVD by IN UBS NP in IN September NP 2000 CD indicates VVZ only RB 1 CD , , 285 CD employees NNS in IN Switzerland NP actually RB lost VVD their PP$ jobs NNS between IN June NP 1998 CD and CC June NP 2000 CD . SENT Of IN these DT , , 14 CD per IN cent NN 125 CD found VVD new JJ jobs NNS inside IN or CC outside IN the DT bank NN , , 70 CD per IN cent NN 656 CD agreed VVN to TO early JJ retirement NN and CC 15 CD per IN cent NN 145 CD were VBD made VVN redundant JJ . SENT A DT special JJ advisory JJ team NN established VVN within IN the DT framework NN agreement NN 52 CD between IN the DT bank NN , , ASEB NP Association NP suisse NP des NP employ VV s PP de NP banque NP and CC the DT personnel NNS commissions NNS of IN the DT banks NNS was VBD dealing VVG with IN the DT case NN of IN 346 CD employees NNS with IN a DT view NN to TO finding VVG mutually RB acceptable JJ solutions NNS . SENT Although IN the DT banking NN system NN in IN France NP is VBZ very RB diverse JJ , , increased JJ concentration NN was VBD discernible JJ as IN from IN the DT early JJ 1990 CD s PP . SENT As RB in IN many JJ other JJ OECD NP countries NNS , , there EX are VBP multiple JJ reasons NNS for IN this DT . SENT Consolidation NN and CC the DT formation NN of IN mega JJ corporations NNS in IN other JJ sectors NNS tend VVP to TO inspire VV similar JJ processes NNS in IN financial JJ services NNS , , with IN service NN providers NNS wishing VVG to TO attain VV a DT comparable JJ size NN and CC sufficient JJ resources NNS to TO meet VV clients NNS increased VVN resource NN needs NNS . SENT The DT expansion NN in IN distribution NN channels NNS and CC growing VVG internationalization NN also RB require VV investment NN capacities NNS that IN only JJ large JJ institutions NNS can MD meet VV . SENT Increasing VVG technical JJ and CC procedural JJ complexity NN necessitates VVZ the DT type NN of IN high JJ general JJ management NN expenditure NN that WDT only RB sufficiently RB large JJ business NN volumes NNS can MD absorb VV . SENT As IN a DT result NN of IN consolidation NN and CC greater JJR use NN of IN technology NN , , the DT number NN of IN employees NNS in IN the DT French JJ banking NN network NN excluding VVG those DT in IN the DT postal JJ financial JJ services NNS declined VVD from IN 431 CD , , 000 CD in IN 1986 CD to TO 409 CD , , 791 CD by IN 1995 CD . SENT French JJ credit NN institutions NNS currently RB employ VVP approximately RB 2 CD per IN cent NN of IN the DT active JJ labour NN force NN . SENT The DT entire JJ financial JJ services NNS sector NN including VVG savings NNS banks NNS , , mutual JJ institutions NNS and CC consumer NN credit NN specialists NNS experienced VVD a DT drop NN of IN 26 CD , , 000 CD jobs NNS from IN 1986 CD to TO 1997 CD . SENT Despite IN retirements NNS , , negotiated VVN redundancies NNS and CC a DT substantial JJ shift NN from IN full JJ time NN to TO part NN time NN work NN , , industry NN analysts NNS still RB consider VVP the DT sector NN to TO be VB overstaffed VVN . SENT In IN general NN , , M NP A DT related JJ job NN losses NNS have VHP primarily RB affected VVN branch NN networks NNS , , followed VVN by IN back JJ office NN functions NNS . SENT Reductions NNS in IN operational JJ activities NNS such JJ as IN asset NN management NN are VBP rarely RB significant JJ , , though IN there EX have VHP been VBN some DT exceptions NNS . SENT The DT failure NN to TO conclude VV lengthy JJ and CC highly RB publicized VVN merger NN negotiations NNS has VHZ frequently RB resulted VVN in IN the DT damaging JJ loss NN of IN talented JJ staff NN to TO competitors NNS owing VVG to TO uncertainty NN and CC job NN insecurity NN ushered VVD in IN by IN such JJ processes NNS . SENT Following VVG the DT long JJ and CC abortive JJ 1999 CD attempt NN at IN a DT three CD way NN merger NN in IN France NP of IN SocGen NP , , BNP NP and CC Paribas NP , , the DT president NN of IN the DT newly RB formed VVN BNP NP Paribas NP pledged VVD to TO build VV up RP the DT financial JJ market NN and CC investment NN banking NN arms NNS of IN the DT new JJ company NN which WDT would MD be VB based VVN in IN London NP . SENT As IN a DT start NN , , the DT programme NN envisaged VVD a DT strengthening NN of IN Paribas NP s PP equity NN department NN , , which WDT had VHD suffered VVN massive JJ defections NNS , , particularly RB of IN young JJ analysts NNS , , during IN the DT extended JJ period NN of IN the DT merger NN . SENT The DT new JJ BNP NP Paribas NP employed VVN 76 CD , , 150 CD staff NN in IN 1999 CD , , 28 CD , , 000 CD of IN whom WP were VBD outside IN France NP . SENT At IN the DT time NN of IN the DT merger NN it PP was VBD announced VVN that IN about IN 3 CD , , 600 CD staff NN would MD be VB cut VVN in IN France NP over IN three CD years NNS . SENT According VVG to TO the DT bank NN s PP chief JJ executive NN , , taking VVG account NN of IN natural JJ attrition NN involving VVG about IN 2 CD , , 000 CD departures NNS per IN year NN , , the DT operation NN may MD actually RB result VV in IN the DT net JJ recruitment NN of IN 800 CD young JJ employees NNS each DT year NN , , and CC not RB involve VV any DT involuntary JJ terminations NNS . SENT Outside IN France NP , , there EX will MD be VB 700 CD retrenchments NNS annually RB for IN three CD years NNS , , 300 CD to TO 400 CD of IN which WDT will MD be VB in IN London NP . SENT Management NP does VVZ not RB envisage VV any DT difficulty NN in IN implementing VVG the DT reductions NNS most RBS of IN which WDT are VBP also RB expected VVN to TO be VB through IN natural JJ attrition NN . SENT One CD of IN the DT causes NNS of IN the DT failure NN of IN the DT merger NN proposal NN to TO create VV SBP NP the DT proposed VVN bank NN under IN the DT three CD way NN merger NN related VVN to TO its PP$ employment NN consequences NNS . SENT According VVG to TO SocGen NP , , BNP NP s PP target VVP in IN the DT proposed VVN merger NN with IN 33 CD , , 800 CD and CC 38 CD , , 500 CD employees NNS in IN France NP in IN 1997 CD , , respectively RB achieving VVG the DT merger NN related VVN profitability NN forecasts NNS projected VVN by IN BNP NP by IN 2002 CD would MD have VH required VVN , , in IN addition NN to TO an DT expected VVN attrition NN level NN of IN 1 CD , , 000 CD jobs NNS annually RB 500 CD each DT from IN BNP NP and CC SocGen NP , , that DT SBP NP eliminate VV an DT additional JJ 6 CD , , 000 CD positions NNS within IN three CD years NNS . SENT Information NN systems NNS constitute VVP another DT area NN which WDT is VBZ usually RB deeply RB affected VVN by IN merger NN related JJ job NN losses NNS , , although IN at IN the DT beginning NN of IN the DT integration NN process VVP IT PP specialists NNS are VBP frequently RB expected VVN to TO work VV extra JJ hard RB to TO harmonize VV systems NNS . SENT Once RB the DT system NN harmonization NN is VBZ complete JJ , , however RB , , banks NNS usually RB feel VVP the DT need NN to TO reduce VV overstaffing VVG in IN this DT area NN as IN computer NN related VVN costs NNS usually RB represent VVP between IN 10 CD and CC 15 CD per IN cent NN of IN their PP$ turnover NN . SENT The DT March NP 2000 CD announcement NN of IN a DT proposed VVN merger NN eventually RB aborted VVN between IN Germany NP s PP Deutsche NP and CC Dresdner NP banks NNS provoked VVD strong JJ criticism NN over IN expected VVN job NN losses NNS 800 CD branches NNS were VBD expected VVN to TO be VB closed VVN and CC 16 CD , , 300 CD job NN losses NNS of IN a DT worldwide JJ total NN of IN 140 CD , , 000 CD for IN the DT combined JJ company NN , , were VBD forecast VVN . SENT The DT German NP Confederation NP of IN Trade NP Unions NNS DGB NP trade NN union NN had VHD proposed VVN that IN profits NNS generated VVN by IN the DT merger NN should MD be VB partly RB used VVN to TO guarantee VV against IN job NN losses NNS but CC most JJS analysts NNS considered VVD there EX was VBD such PDT an DT extensive JJ overlap VVP between IN the DT two CD banks NNS operations NNS that IN such JJ guarantees NNS would MD deprive VV the DT merger NN of IN its PP$ raison NN d NN tre NNS . SENT Following VVG the DT merger NN failure NN , , Dresdner NP Bank NP announced VVD a DT vast JJ restructuring NN programme NN , , including VVG the DT elimination NN of IN 5 CD , , 000 CD jobs NNS approximately RB one CD in IN ten CD . SENT 300 CD branches NNS a DT quarter NN of IN its PP$ network NN are VBP to TO be VB closed VVN over IN two CD to TO three CD years NNS . SENT As IN a DT result NN of IN uncertainties NNS and CC insecurity NN generated VVN during IN the DT negotiations NNS , , a DT significant JJ number NN of IN the DT 7 CD , , 500 CD staff NN in IN the DT bank NN s PP investment NN banking NN subsidiary NN , , Dresdner NP Kleinwort NP Benson NP and CC a DT major JJ cause NN for IN the DT failure NN of IN the DT negotiations NNS quit VVP to TO join VV competitors NNS . SENT Deutsche NP Bank NP s PP acquisition NN of IN Bankers NPS Trust NP foresaw VVD an DT eventual JJ increase NN in IN staffing VVG levels NNS to TO 90 CD , , 000 CD , , half NN of IN which WDT would MD be VB outside IN Germany NP . SENT Nevertheless RB 5 CD , , 500 CD reductions NNS were VBD expected VVN in IN June NP 1999 CD , , primarily RB affecting VVG the DT merged JJ bank NN s PP operations NNS in IN London NP and CC New NP York NP . SENT The DT financial JJ windfalls NNS awarded VVN to TO Bankers NPS Trust NP s PP senior JJ managers NNS in IN the DT merger NN package NN , , estimated VVN at IN 400 CD million CD , , also RB generated VVN much JJ controversy NN in IN Germany NP . SENT In IN Japan NP see VVP above RB , , a DT wave NN of IN mega JJ mergers NNS is VBZ gathering VVG strength NN . SENT These DT manoeuvres NNS will MD create VV the DT second JJ largest JJS Japanese JJ and CC third NN largest JJS global JJ banking NN and CC financial JJ services NNS group NN , , each DT with IN combined JJ assets NNS of IN over IN 1 CD trillion CD . SENT The DT mergers NNS are VBP also RB expected VVN to TO result VV in IN widespread JJ redundancies NNS , , probably RB amounting VVG to TO a DT reduction NN of IN 6 CD , , 000 CD out IN of IN 37 CD , , 000 CD jobs NNS , , and CC the DT closure NN of IN 150 CD of IN DKB NP Fuji NP IBJ NP s PP combined VVD 704 CD branches NNS . SENT However RB , , the DT companies NNS have VHP pledged VVN that IN cuts NNS would MD be VB through IN attrition NN up RP until IN 2006 CD , , rather RB than IN lay VV offs NNS . SENT In IN the DT context NN of IN the DT continuing VVG erosion NN of IN Japan NP s PP lifelong JJ employment NN traditions NNS , , it PP is VBZ not RB impossible JJ to TO envisage VV that IN this DT is VBZ just RB the DT first JJ step NN in IN a DT restructuring NN process NN which WDT will MD result VV in IN further JJR and CC significant JJ job NN losses NNS . SENT The DT situation NN raises VVZ increased JJ concerns NNS given VVN the DT fact NN that IN in IN Japan NP employment NN security NN is VBZ based VVN on IN social JJ rather RB than IN legal JJ foundations NNS , , and CC social JJ safety NN nets NNS are VBP more RBR corporate JJ based VVN than IN national JJ . SENT The DT 1999 CD strategic JJ alliance NN of IN Japanese JJ commercial JJ banks NNS Sumitomo NP and CC Sakura NP , , aiming VVG at IN a DT complete JJ merger NN by IN 2002 CD , , envisaged VVD the DT elimination NN of IN 3 CD , , 000 CD positions NNS within IN two CD years NNS of IN the DT merger NN and CC , , in IN the DT meantime NN , , a DT restructuring NN programme NN involving VVG 6 CD , , 300 CD job NN cuts NNS and CC the DT closure NN of IN 183 CD branches NNS , , including VVG 32 CD outside IN Japan NP . SENT The DT failed VVN merger NN plans NNS of IN Asahi NP and CC Tokai NP banks NNS foresaw VVD the DT establishment NN of IN a DT common JJ holding NN company NN in IN 2000 CD , , and CC a DT four CD year NN programme NN to TO cut VV 4 CD , , 000 CD jobs NNS , , or CC 17 CD per IN cent NN of IN personnel NNS , , and CC to TO close VV 70 CD branches NNS in IN Japan NP and CC ten CD abroad RB . SENT In IN March NP 1999 CD , , Japan NP s VVZ largest JJS banks NNS also RB pledged VVD to TO cut VV 21 CD , , 000 CD jobs NNS in IN exchange NN for IN 60 CD billion CD of IN public JJ funds NNS to TO boost VV their PP$ capital NN base NN . SENT The DT cuts NNS , , representing VVG 15 CD per IN cent NN of IN the DT banks NNS current JJ staff NN , , would MD be VB implemented VVN over IN five CD years NNS as IN part NN of IN broader JJR restructuring NN intended VVN to TO solve VV Japan NP s PP long RB running VVG banking NN problems NNS . SENT In IN Indonesia NP , , financial JJ sector NN consolidation NN , , also RB as IN a DT result NN of IN the DT Asian JJ financial JJ crisis NN , , is VBZ continuing VVG under IN the DT supervision NN of IN the DT Indonesian JJ Bank NP Restructuring NN Agency NP IBRA NP and CC the DT financial JJ support NN and CC watchful JJ eye NN of IN the DT IMF NP . SENT Banks NNS merged VVD so RB far RB under IN the DT bank NN takeover NN project NN include VVP Bank NP Danamom NP Indonesia NP , , Bank NP PDFCI NP , , Bank NP Duta NP , , Bank NP Nusa NP Nasional NP , , Bank NP Pos NNS Nusantara NP , , Bank NP Rama NP , , Bank NP Tamara NP , , Bank NP Tiara NP Asia NP and CC Jayabank NP International NP . SENT Given VVN the DT shotgun JJ marriage NN nature NN of IN this DT multiple JJ bank NN merger NN , , it PP is VBZ possible JJ that IN the DT employment NN effects NNS will MD be VB severe JJ . SENT According VVG to TO two CD Latin JJ American JJ trade NN unions NNS , , Association NP of IN Bank NP Employees NPS AB NP Argentina NP and CC Single NP Central NP Organization NP of IN Workers NPS CUT VVD of IN Brazil NP , , consolidation NN and CC its PP$ employment NN repercussions NNS in IN these DT two CD countries NNS are VBP roughly RB comparable JJ to TO those DT being NN experienced VVN in IN Europe NP . SENT M NP As RB have VHP contributed VVN to TO cutting VVG the DT number NN of IN banks NNS in IN Brazil NP by IN far RB Latin NP America NP s VVZ biggest JJS banking NN market NN with IN an DT estimated VVN 25 CD million CD account NN holders NNS out RB of IN a DT population NN of IN 165 CD million CD from IN 263 CD in IN 1994 CD to TO 214 CD by IN June NP 2000 CD . SENT Concurrent JJ with IN this DT process NN , , approximately RB 79 CD , , 000 CD financial JJ sector NN jobs NNS have VHP disappeared VVN . SENT It PP must MD be VB said VVN that IN pre NP merger NN employment NN at IN many JJ of IN the DT banks NNS involved VVN was VBD already RB declining VVG , , but CC there EX is VBZ evidence NN to TO support VV the DT argument NN that IN M NP As RB have VHP accelerated VVN the DT trend NN . SENT For IN example NN , , in IN 1994 CD , , the DT combined JJ staff NN of IN Banco NP Ita NP , , BFB NP , , Banerj NP and CC Bemge NP totalled VVD 63 CD , , 895 CD . SENT by IN 1999 CD , , after IN Banco NP Ita NP had VHD acquired VVN the DT other JJ three CD , , their PP$ combined JJ workforce NN was VBD down RB to TO 44 CD , , 699 CD , , or CC a DT reduction NN of IN 30 CD per IN cent NN . SENT Similarly RB , , the DT total JJ number NN of IN employees NNS of IN Unibanco NP and CC Banco NP Nacional NP in IN 1994 CD was VBD 31 CD , , 743 CD . SENT Following VVG the DT takeover NN of IN the DT latter NN by IN the DT former JJ in IN November NP 1995 CD , , staff NN levels NNS had VHD fallen VVN to TO 19 CD , , 000 CD by IN 1999 CD . SENT A DT comparable JJ trend NN is VBZ discernible JJ with IN the DT acquisition NN of IN BCN NP , , Baneb NP and CC Credireal NP by IN Bradesco NP or CC of IN BGC NP , , Banco NP Noroeste NP , , Bozano NP , , Simonsen NP and CC Banco NP Meridional NN by IN Banco NP Santander NP Brasil NP . SENT However RB , , the DT acquisitions NNS by IN ABN NP AMRO NP Bank NP of IN Banco NP Real NP and CC Bandepe NP in IN 1998 CD increased JJ employment NN in IN the DT combined JJ group NN slightly RB from IN 20 CD , , 992 CD in IN 1994 CD to TO 21 CD , , 579 CD in IN 1999 CD . SENT In IN the DT meantime NN , , nine CD banks NNS four CD Brazilian JJ and CC five CD foreign JJ are VBP vying VVG to TO buy VV Banespa NP , , one CD of IN the DT biggest JJS publicly RB owned VVN banks NNS , , from IN the DT Government NN , , with IN the DT sale NN expected VVN to TO trigger VV further JJR takeovers NNS as IN unsuccessful JJ bidders NNS attempt VVP to TO expand VV or CC protect VV their PP$ own JJ market NN positions NNS . SENT Bank NP of IN America NP s PP acquisition NN of IN Security NP Pacific NP was VBD expected VVN to TO result VV in IN 11 CD to TO 13 CD per IN cent NN of IN the DT positions NNS of IN the DT combined JJ operations NNS being VBG eliminated VVN . SENT However RB , , other JJ evidence NN suggests VVZ a DT higher JJR average NN of IN 17 CD . SENT 5 CD per IN cent NN may MD be VB more RBR likely JJ , , especially RB as RB in IN July NP 2000 CD the DT bank NN announced VVD it PP would MD eliminate VV an DT additional JJ 10 CD , , 000 CD jobs NNS 7 CD per IN cent NN of IN the DT current JJ workforce NN to TO boost VV profits NNS . SENT The DT lay VVD offs NNS would MD principally RB focus VV on IN middle JJ and CC senior JJ management NN . SENT Concurrent JJ with IN the DT restructuring NN , , a DT major JJ overhaul NN aims VVZ at IN increasing VVG sales NNS of IN stocks NNS , , bonds NNS and CC other JJ financial JJ services NNS to TO the DT 30 CD million CD existing JJ banking NN customers NNS through IN the DT bank NN s VVZ 4 CD , , 500 CD branches NNS . SENT Only RB about IN 1 CD million CD of IN its PP$ customers NNS buy VVP bonds NNS , , stocks NNS and CC mutual JJ funds NNS from IN the DT bank NN at IN the DT moment NN . SENT Among IN the DT changes NNS envisaged VVN are VBP the DT transformation NN of IN 500 CD branches NNS into IN financial JJ centres NNS featuring VVG television NN sets NNS tuned VVN to TO financial JJ news NN networks NNS , , computers NNS to TO allow VV Internet NN access NN to TO accounts NNS and CC layout NN and CC other JJ changes NNS to TO make VV them PP more RBR welcoming VVG . SENT The DT branches NNS will MD provide VV customers NNS with IN investment NN advice NN , , access NN to TO the DT company NN s PP retail VVP brokerage NN unit NN and CC research NN and CC other JJ services NNS . SENT The DT company NN hopes VVZ to TO gain VV new JJ customers NNS to TO boost VV revenue NN growth NN by IN 7 CD to TO 9 CD per IN cent NN annually RB from IN the DT current JJ level NN of IN 5 CD to TO 6 CD per IN cent NN . SENT Bank NP of IN America NP s PP plans VVZ are VBP in IN line NN with IN those DT of IN many JJ other JJ banks NNS that WDT are VBP expanding VVG fee NN based VVN operations NNS like IN investment NN services NNS , , which WDT are VBP more RBR profitable JJ than IN traditional JJ banking NN business NN such JJ as IN the DT provision NN of IN loans NNS . SENT Paradoxically RB the DT United NP States NPS , , which WDT recorded VVD the DT most JJS M NP A DT activity NN in IN the DT financial JJ sector NN , , also RB seems VVZ to TO have VH added VVN the DT most RBS new JJ jobs NNS . SENT approximately RB 461 CD , , 000 CD between IN 1990 CD and CC 1999 CD . SENT During IN the DT same JJ period NN , , however RB , , depository JJ institutions NNS , , commercial JJ banks NNS and CC savings NNS banks NNS , , which WDT account VVP for IN the DT greatest JJS share NN of IN employment NN and CC merger NN activity NN in IN the DT sector NN , , shed VVD a DT total NN of IN approximately RB 447 CD , , 000 CD jobs NNS . SENT These DT job NN losses NNS were VBD amply RB compensated VVN by IN those DT created VVN in IN non JJ depository JJ financial JJ institutions NNS , , such JJ as IN mortgage NN banks NNS and CC brokerages NNS , , security NN and CC commodity NN brokerages NNS , , holding VVG companies NNS and CC other JJ investment NN offices NNS . SENT However RB , , available JJ statistics NNS do VVP not RB permit VV an DT assessment NN of IN the DT replacement NN jobs NNS comparative JJ quality NN . SENT A DT growing VVG concern NN everywhere RB , , not RB just RB in IN the DT United NP States NPS , , is VBZ that IN high JJ paid VVN jobs NNS are VBP being VBG replaced VVN by IN low JJ skilled JJ , , low JJ paid JJ assembly NN line NN types NNS of IN jobs NNS representing VVG the DT area NN of IN highest JJS employment NN growth NN in IN financial JJ services NNS . SENT Job NN creation NN in IN the DT sector NN should MD also RB be VB considered VVN in IN the DT light NN of IN one CD of IN the DT longest JJS peacetime NN economic JJ growth NN periods NNS the DT United NP States NPS has VHZ ever RB recorded VVN . SENT A DT 1999 CD study NN by IN the DT Office NN of IN Advocacy NN of IN the DT United NP States NPS Small NP Business NP Administration NP , , provides VVZ an DT excellent JJ analysis NN of IN the DT employment NN impact NN of IN M NP As IN in IN the DT United NP States NPS . SENT While IN the DT focus NN of IN the DT SBA NP report NN , , covering VVG the DT 1990 CD 94 CD period NN , , is VBZ on IN business NN acquisition NN activity NN by IN firm NN size NN and CC industry NN , , many JJ of IN its PP$ findings NNS are VBP pertinent JJ in IN the DT context NN of IN this DT report NN . SENT The DT main JJ conclusions NNS are VBP that IN merger NN and CC acquisition NN activity NN differed VVD by IN industry NN . SENT Acquisition NN rates NNS for IN the DT major JJ industries NNS ranged VVN from IN 1 CD . SENT 6 CD per IN cent NN of IN all DT establishments NNS in IN services NNS to TO 6 CD . SENT 4 CD per IN cent NN in IN finance NN , , insurance NN and CC real JJ estate NN . SENT The DT finance NN sector NN also RB had VHD the DT highest JJS percentage NN of IN employment NN associated VVN with IN acquisitions NNS . SENT 12 CD . SENT 1 CD per IN cent NN of IN the DT sector NN s PP workers NNS in IN 1990 CD were VBD in IN establishments NNS that WDT had VHD been VBN acquired VVN by IN 1994 CD . SENT The DT all DT industry NN average NN was VBD about RB half JJ that IN , , at IN 6 CD . SENT 9 CD per IN cent NN . SENT More JJR than IN 4 CD , , 000 CD establishments NNS were VBD acquired VVN in IN national JJ and CC state NN commercial JJ banks NNS . SENT Between IN 1990 CD and CC 1994 CD , , employment NN changed VVD more RBR in IN surviving VVG acquired VVN establishments NNS than IN in IN surviving VVG non JJ acquired VVN establishments NNS , , and CC the DT overall JJ result NN was VBD greater JJR job NN loss NN in IN acquired VVN establishments NNS . SENT The DT employment NN creation NN , , destruction NN and CC net JJ change NN rates NNS are VBP calculated VVN on IN the DT basis NN of IN the DT appropriate JJ aggregate JJ change NN in IN employment NN divided VVN by IN the DT aggregate JJ employment NN of IN those DT establishments NNS in IN 1990 CD . SENT According VVG to TO the DT same JJ study NN , , some DT of IN the DT acquired VVN establishments NNS gained VVD jobs NNS , , and CC their PP$ total JJ gains NNS were VBD 21 CD . SENT 3 CD per IN cent NN of IN the DT 1990 CD base NN year NN employment NN of IN acquired VVN establishments NNS . SENT Others NNS lost VVD jobs NNS , , and CC their PP$ total JJ losses NNS were VBD 24 CD . SENT 6 CD per IN cent NN of IN the DT 1990 CD employment NN of IN acquired VVN establishments NNS . SENT Thus RB the DT net JJ change NN in IN acquired VVN establishments NNS was VBD a DT loss NN of IN 3 CD . SENT 3 CD per IN cent NN over IN the DT period NN . SENT The DT surviving VVG non JJ acquired VVN establishments NNS , , on IN the DT other JJ hand NN , , had VHD a DT small JJ net JJ job NN increase NN of IN 0 CD . SENT 7 CD per IN cent NN during IN the DT same JJ period NN . SENT Acquired VVN establishments NNS had VHD job NN destruction NN rates VVZ 6 CD percentage NN points NNS higher RBR , , on IN average NN , , than IN their PP$ non JJ acquired VVN counterparts NNS . SENT The DT average JJ job NN creation NN rate NN was VBD only RB 3 CD percentage NN points NNS higher RBR . SENT A DT possible JJ explanation NN for IN the DT higher JJR job NN loss NN was VBD the DT fact NN that IN many JJ establishments NNS were VBD acquired VVN primarily RB for IN their PP$ physical JJ assets NNS or CC for IN some DT of IN their PP$ skilled JJ labour NN or CC management NN , , which WDT were VBD subsequently RB transferred VVN to TO other JJ locations NNS of IN the DT acquiring VVG firm NN . SENT In IN absolute JJ terms NNS , , finance NN and CC services NNS were VBD the DT second JJ largest JJS after IN retail JJ trade NN in IN the DT number NN of IN acquisitions NNS about IN 22 CD , , 000 CD or CC 23 CD per IN cent NN each DT . SENT The DT finance NN , , insurance NN and CC real JJ estate NN industries NNS had VHD the DT highest JJS net JJ job NN loss NN rate NN for IN acquired VVN establishments NNS , , primarily RB because IN of IN a DT high JJ rate NN of IN job NN destruction NN . SENT The DT acquired VVN retail JJ trade NN establishments NNS also RB had VHD a DT high JJ net JJ job NN loss NN rate NN , , but CC this DT was VBD primarily RB due JJ to TO a DT low JJ rate NN of IN job NN creation NN . SENT Establishments NNS in IN small JJ firms NNS involved VVN in IN acquisition NN activity NN generated VVD much RB more JJR employment NN than IN those DT in IN large JJ firms NNS . SENT In IN fact NN , , the DT acquired VVN establishments NNS that WDT belonged VVD to TO large JJ firms NNS before IN their PP$ acquisition NN experienced VVD such JJ significant JJ losses NNS in IN employment NN that IN the DT group NN of IN acquired VVN establishments NNS as IN a DT whole NN recorded VVD a DT net JJ loss NN of IN jobs NNS despite IN the DT fact NN that IN over IN this DT same JJ period NN the DT entire JJ population NN of IN surviving VVG establishments NNS produced VVD a DT small JJ net JJ increase NN in IN jobs NNS . SENT In IN Canada NP , , a DT study NN commissioned VVN by IN the DT government NN of IN British NP Columbia NP has VHZ analysed VVN what WP the DT employment NN impact NN would MD have VH been VBN had VHD proposed VVN mergers NNS involving VVG four CD of IN Canada NP s VVZ largest JJS chartered JJ banks NNS CIBC NP , , Toronto NP Dominion NP Bank NP , , Bank NP of IN Montreal NP and CC Royal NP Bank NP been VBN approved VVN by IN the DT federal JJ Government NN they PP were VBD eventually RB not RB approved VVN . SENT Together RB with IN the DT Bank NP of IN Nova NP Scotia NP , , the DT four CD banks NNS comprise VVP Canada NP s NN five CD largest JJS national JJ banks NNS . SENT The DT CIBC NP and CC Toronto NP Dominion NP Bank NP had VHD argued VVN in IN their PP$ application NN that IN more JJR jobs NNS would MD be VB generated VVN within IN a DT few JJ years NNS due JJ to TO expanded JJ services NNS . SENT The DT Royal NP Bank NP and CC Bank NP of IN Montreal NP acknowledged VVD possible JJ initial JJ job NN losses NNS of IN 10 CD per IN cent NN which WDT could MD be VB implemented VVN via IN attrition NN . SENT The DT Bank NP of IN Montreal NP argued VVD that IN the DT new JJ bank NN would MD eventually RB have VH a DT positive JJ employment NN impact NN of IN between IN 5 CD and CC 10 CD per IN cent NN after IN a DT transitional JJ period NN . SENT There EX were VBD projections NNS of IN an DT expansion NN in IN the DT number NN of IN branches NNS of IN the DT combined JJ operation NN from IN 2 CD , , 532 CD to TO about IN 3 CD , , 000 CD branches NNS that WDT would MD employ VV staff NN , , though RB not RB necessarily RB perform VV traditional JJ branch NN functions NNS . SENT Other JJ commentators NNS predicted VVD the DT closure NN of IN a DT third JJ of IN the DT branches NNS of IN the DT combined JJ Royal NP Bank NP and CC the DT Bank NP of IN Montreal NP with IN major JJ job NN losses NNS affecting VVG many JJ highly RB paid VVN middle JJ managers NNS . SENT An DT important JJ attribute NN of IN this DT study NN is VBZ that IN , , given VVN British NP Columbia NP s PP economic JJ structure NN and CC level NN of IN development NN , , its PP$ conclusions NNS can MD be VB roughly RB extrapolated VVN to TO similar JJ mergers NNS in IN countries NNS with IN comparable JJ economic JJ conditions NNS . SENT Table NN 3 CD . SENT 9 CD below RB provides VVZ chartered JJ bank NN employment NN patterns NNS over IN a DT decade NN in IN Canada NP and CC British NP Columbia NP . SENT The DT data NNS , , published VVN by IN the DT Canadian NP Bankers NPS Association NP , , refers VVZ to TO permanent JJ full JJ time NN and CC part NN time NN employees NNS but CC excludes VVZ temporary JJ or CC casual JJ workers NNS . SENT it PP describes VVZ the DT workforce NN of IN the DT six CD largest JJS chartered JJ banks NNS in IN British NP Columbia NP s PP case NN this DT essentially RB refers VVZ to TO the DT big JJ five CD since IN the DT National NP Bank NP has VHZ little JJ presence NN in IN the DT province NN . SENT The DT employment NN impact NN of IN banking NN is VBZ understated VVN by IN excluding VVG certain JJ categories NNS of IN employees NNS temporary JJ , , casual JJ and CC institutions NNS chartered VVD banks NNS other JJ than IN the DT big JJ six CD and CC subsidiary NN companies NNS . SENT The DT table NN indicates VVZ rising VVG numbers NNS of IN bank NN employees NNS through IN to TO the DT early JJ 1990 CD s PP followed VVD by IN a DT decline NN thereafter RB , , trends NNS comparable JJ to TO those DT seen VVN in IN many JJ other JJ industrialized JJ countries NNS . SENT Table NN 3 CD . SENT 9 CD . SENT Chartered JJ bank NN employment NN in IN Canada NP and CC British NP Columbia NP permanent JJ , , full JJ time NN and CC part NN time NN Year NP Bank NP employees NNS in IN Canada NP of IN labour NN force NN in IN Canada NP Bank NP employees NNS in IN British NP Columbia NP of IN labour NN force NN in IN British JJ Columbia NP 1985 CD 162 CD 163 CD 1 CD . SENT 24 CD 19 JJ 685 CD 1 CD . SENT 30 CD 1986 CD 162 JJ 667 CD 1 CD . SENT 22 CD 19 JJ 987 CD 1 CD . SENT 29 CD 1987 CD 162 JJ 850 CD 1 CD . SENT 19 CD 18 JJ 104 CD 1 CD . SENT 15 CD 1988 CD 164 JJ 417 CD 1 CD . SENT 18 CD 17 JJ 306 CD 1 CD . SENT 07 CD 1989 CD 169 JJ 246 CD 1 CD . SENT 2 CD 17 JJ 599 CD 1 CD . SENT 05 CD 1990 CD 172 JJ 484 CD 1 CD . SENT 2 CD 18 JJ 121 CD 1 CD . SENT 06 CD 1991 CD 173 JJ 090 CD 1 CD . SENT 2 CD 18 JJ 435 CD 1 CD . SENT 05 CD 1992 CD 172 JJ 776 CD 1 CD . SENT 19 CD 18 JJ 654 CD 1 CD . SENT 03 CD 1993 CD 170 JJ 808 CD 1 CD . SENT 16 CD 18 JJ 780 CD 1 CD . SENT 02 CD 1994 CD N NP A NP N NP A NP N NP A NP N NP A DT 1995 CD 161 CD 346 CD 1 CD . SENT 08 CD 17 JJ 760 CD 0 CD . SENT 92 CD 1996 CD 160 JJ 104 CD 1 CD . SENT 04 CD 17 JJ 592 CD 0 CD . SENT 89 CD Percentage NN change NN Years NNS Canada NP British NP Columbia NP 1985 CD 90 CD 6 CD . SENT 4 CD 2 CD . SENT 8 CD 1991 JJ 96 CD 7 CD . SENT 5 CD 4 CD . SENT 6 CD 1985 JJ 96 CD 1 CD . SENT 1 CD 10 CD . SENT 6 CD Source NN . SENT Canadian NP Bankers NPS Association NP . SENT Canadian NP Bank NP Facts NNS various JJ years NNS . SENT The DT 1996 CD data NNS are VBP from IN Annual JJ Employer NN Reports NNS under IN the DT Federal NP Employment NP Equity NP Act NP . SENT Just RB as RB in IN other JJ developed JJ countries NNS see VVP tables NNS 3 CD . SENT 10 CD and CC 3 CD . SENT 11 CD , , it PP is VBZ apparent JJ that IN permanent JJ bank NN employment NN as IN a DT percentage NN of IN the DT labour NN force NN has VHZ been VBN in IN gradual JJ decline NN since IN the DT mid JJ 1980 CD s PP . SENT This DT is VBZ consistent JJ with IN other JJ studies NNS which WDT have VHP concluded VVN that DT part NN time NN , , temporary JJ and CC other JJ atypical JJ employment NN contracts NNS are VBP an DT integral JJ part NN of IN M NP A DT related JJ employment NN strategies NNS . SENT The DT sharp JJ decline NN in IN Canadian JJ bank NN employment NN in IN the DT mid JJ 1990 CD s PP followed VVD mergers NNS with IN and CC the DT takeover NN of IN trust NN companies NNS , , such JJ as IN that IN involving VVG the DT Royal NP Bank NP and CC Royal NP Trust NP . SENT Consistent JJ with IN the DT pattern NN in IN other JJ countries NNS highlighted VVN in IN table NN 3 CD . SENT 10 CD , , employment NN growth NN peaked VVN in IN the DT 1990 CD s PP and CC then RB started VVD to TO decline VV . SENT During IN the DT 1980 CD s PP , , a DT period NN of IN financial JJ deregulation NN and CC rapid JJ introduction NN of IN new JJ technologies NNS , , employee NN numbers NNS expanded VVN as IN new JJ services NNS and CC products NNS were VBD added VVN . SENT After IN 1990 CD the DT employment NN saving VVG potential NN of IN the DT new JJ technologies NNS appeared VVD to TO have VH exceeded VVN their PP$ market NN expanding VVG capacity NN and CC employment NN began VVD to TO fall VV in IN a DT context NN of IN rationalization NN and CC cost NN reduction NN . SENT Table NN 3 CD . SENT 12 CD provides VVZ a DT more RBR detailed JJ snapshot NN of IN various JJ types NNS of IN bank NN employment NN in IN 1995 CD . SENT The DT extent NN to TO which WDT the DT six CD largest JJS banks NNS rely VVP on IN temporary JJ and CC permanent JJ part NN time NN workers NNS 31 CD per IN cent NN of IN employees NNS in IN Canada NP . SENT an DT estimated VVN 35 CD per IN cent NN in IN British NP Columbia NP is VBZ noteworthy JJ . SENT Table NN 3 CD . SENT 10 CD . SENT Bank NP employment NN patterns NNS in IN European JJ Union NP countries NNS Country NN 1980 CD thousands NNS 1990 CD thousands NNS 1994 CD thousands NNS change VV 1980 CD 90 CD change NN 1990 CD 94 CD Belgium NN 68 CD 79 CD 76 CD 16 CD . SENT 2 CD 3 CD . SENT 8 CD Finland NP 42 CD 50 CD 36 CD 19 CD . SENT 0 CD 28 CD . SENT 0 CD France NP 399 CD 399 CD 382 JJ 0 CD 4 CD . SENT 3 CD Germany NP 533 CD 62 CD 658 CD 16 CD . SENT 5 CD 6 CD . SENT 0 CD Italy NP 277 CD 324 CD 332 JJ 17 CD 2 CD . SENT 5 CD Netherlands NP 113 CD 118 CD 112 CD 4 CD . SENT 4 CD 5 CD . SENT 1 CD Norway NP 24 CD 31 CD 23 CD 29 CD . SENT 2 CD 25 CD . SENT 8 CD Spain NP 252 CD 252 CD 245 JJ 0 CD 2 CD . SENT 8 CD Sweden NP 39 CD 45 CD 42 CD 15 CD . SENT 4 CD 6 CD . SENT 7 CD United NP Kingdom NP 324 CD 425 CD 368 CD 31 CD . SENT 2 CD 13 CD . SENT 4 CD Total JJ 2 CD 011 CD 2 CD 344 JJ 2 CD 274 CD 16 CD . SENT 6 CD 3 CD . SENT 0 CD Source NN . SENT A DT . SENT Tickell NP . SENT European JJ financial JJ integration NN and CC uneven JJ development NN , , forthcoming JJ in IN R NP . SENT Hudson NP and CC A NP . SENT Williams NP eds NPS . SENT , , in IN Uneven JJ development NN in IN Europe NP London NP , , Sage NP . SENT Table NN 3 CD . SENT 11 CD . SENT Financial JJ sector NN employment NN in IN Australia NP 1986 CD thousands NNS 1991 CD thousands NNS 1996 CD thousands NNS change VV 1986 CD 91 CD change NN 1991 CD 96 CD 208 CD . SENT 6 CD 224 CD . SENT 4 CD 190 CD . SENT 7 CD 7 CD . SENT 6 CD 15 CD Source NN . SENT Finance NP Sector NN Union NP of IN Australia NP submission NN to TO Inquiry NP into IN the DT Australian JJ Financial NP System NP , , table NN 1 CD . SENT Table NN 3 CD . SENT 12 CD . SENT Bank NN employment NN in IN Canada NP and CC British NP Colombia NP , , 1995 CD Employers NP Employees NPS Canada NP British NP Columbia NP Six CD largest JJS banks NNS Full JJ time NN Part NN time NN Temporary JJ 122 CD 550 CD 38 JJ 770 CD 16 CD 600 JJ 17 CD 760 CD 1 CD 8201 CD Subsidiaries NNS of IN six CD largest JJS banks NNS 2 CD Full JJ time NN Part NN time NN Temporary JJ 17 CD 800 CD 1 CD 9601 CD All DT other JJ banks NNS Full JJ time NN Part NN time NN Temporary JJ 11 CD 050 CD 1 CD 2151 CD Estimated JJ totals NNS 206 CD 800 CD 22 JJ 755 CD 1 CD . SENT The DT British JJ Colombian JJ breakdown NN is VBZ not RB provided VVN in IN the DT Canadian NP Bankers NPS Association NP figures NNS . SENT It PP has VHZ been VBN assumed VVN that IN the DT regional JJ breakdown NN for IN other JJ forms NNS of IN employment NN listed VVN here RB parallels VVZ that IN of IN full JJ time NN and CC part NN time NN employment NN by IN the DT six CD largest JJS banks NNS . SENT 2 LS . SENT Includes VVZ employees NNS of IN securities NNS , , mortgages NNS , , trust NN and CC insurance NN subsidiaries NNS . SENT Source NN . SENT Canadian NP Bankers NPS Association NP , , Bank NP Facts NNS , , 1996 CD 97 CD . SENT With IN 18 CD , , 975 CD permanent JJ full JJ time NN and CC part NN time NN employees NNS , , 1 CD , , 820 CD temporary JJ employees NNS , , and CC another DT 1 CD , , 960 CD jobs NNS in IN subsidiary NN companies NNS , , the DT chartered JJ banks NNS employed VVN some DT 22 CD , , 755 CD British NP Columbians NP , , exceeding VVG the DT workforce NN in IN most JJS of IN the DT province NN s PP other JJ major JJ industries NNS . SENT The DT direct JJ employment NN impact NN of IN the DT banks NNS was VBD therefore RB significant JJ . SENT Beyond IN its PP$ direct JJ impact NN , , however RB , , the DT banking NN sector NN also RB stimulated VVN significant JJ employment NN in IN other JJ industries NNS through IN its PP$ purchase NN of IN suppliers NNS and CC services NNS , , and CC through IN the DT wages NNS spent VVN by IN its PP$ own JJ employees NNS and CC the DT employees NNS of IN its PP$ suppliers NNS whose WP$ employment NN could MD be VB attributed VVN to TO the DT economic JJ demand NN of IN the DT banks NNS . SENT One CD detailed JJ study NN concluded VVD that DT spending NN by IN banks NNS in IN other JJ industries NNS created VVD 46 CD , , 050 CD jobs NNS in IN Canada NP . SENT 53 CD With IN 190 CD , , 400 CD people NNS directly RB employed VVN in IN the DT banking NN sector NN , , the DT two CD groups NNS of IN employees NNS induced VVD a DT further JJR 149 CD , , 450 CD jobs NNS across IN the DT economy NN for IN a DT total NN of IN 385 CD , , 900 CD Canadian JJ jobs NNS attributable JJ , , directly RB or CC indirectly RB , , to TO the DT banking NN industry NN . SENT The DT ratio NN of IN total JJ employment NN to TO direct JJ employment NN in IN the DT banking NN industry NN was VBD thus RB 2 CD . SENT 03 CD . SENT 1 CD . SENT British NP Columbia NP had VHD a DT sufficiently RB diverse JJ economy NN to TO permit VV extrapolation NN from IN the DT Canadian JJ figures NNS to TO the DT provincial JJ level NN , , and CC so RB applying VVG the DT multiplier NN of IN 2 CD . SENT 03 CD resulted VVN in IN a DT total NN of IN 46 CD , , 193 CD jobs NNS that WDT could MD be VB attributed VVN to TO the DT banking NN sector NN . SENT To TO obtain VV a DT clearer JJR picture NN of IN the DT broader JJR employment NN impact NN in IN British NP Columbia NP of IN the DT proposed VVN bank NN mergers NNS , , a DT series NN of IN three CD estimates NNS was VBD prepared VVN using VVG different JJ economic JJ models NNS . SENT The DT estimates NNS showed VVD losses NNS ranging VVG from IN a DT low NN of IN 2 CD , , 350 CD to TO a DT high NN of IN 3 CD , , 400 CD direct JJ jobs NNS . SENT Counting VVG indirect JJ job NN losses NNS , , it PP was VBD concluded VVN that IN from IN 4 CD , , 770 CD to TO 6 CD , , 800 CD positions NNS could MD disappear VV . SENT It PP is VBZ worth JJ noting VVG that IN the DT British JJ Columbia NP study NN only RB discusses VVZ job NN losses NNS for IN existing VVG positions NNS . SENT Although IN natural JJ attrition NN and CC normal JJ turnover NN would MD reduce VV involuntary JJ redundancies NNS , , and CC thus RB the DT impact NN on IN incumbents NNS , , from IN the DT point NN of IN view NN of IN the DT economy NN as IN a DT whole NN and CC the DT aspirations NNS of IN jobseekers NNS , , employment NN would MD still RB have VH declined VVN . SENT . SENT . SENT . SENT but CC generate VV other JJ jobs NNS As RB might MD be VB expected VVN , , job NN growth NN in IN investment NN banks NNS and CC firms NNS specializing VVG in IN M NP As RB has VHZ been VBN inversely RB proportional JJ to TO losses NNS elsewhere RB in IN the DT financial JJ services NNS sector NN , , although IN the DT increase NN can MD in IN no DT way NN compensate VV for IN overall JJ reductions NNS . SENT Another DT sector NN which WDT has VHZ seen VVN employment NN growth NN is VBZ services NNS to TO finance VV and CC insurance NN , , including VVG stockbroking NN , , share NN registry NN , , mortgage NN broking NN , , credit NN card NN administration NN and CC insurance NN broking NN and CC dealing VVG . SENT In IN Australia NP , , for IN instance NN , , growth NN in IN this DT subsector NN of IN financial JJ services NNS grew VVD by IN about IN 36 CD per IN cent NN between IN 1991 CD and CC 1996 CD , , and CC a DT further JJR 14 CD per IN cent NN between IN 1996 CD and CC 1997 CD . SENT Even RB in IN restructuring VVG financial JJ service NN organizations NNS , , jobs NNS in IN IT PP and CC marketing NN functions NNS as RB well RB as IN in IN call NN centres NNS have VHP increased VVN as IN a DT result NN of IN the DT shift NN in IN strategies NNS . SENT As RB might MD be VB expected VVN , , jobs NNS in IN the DT growth NN areas NNS with IN the DT exception NN of IN those DT in IN call NN centres NNS tend VVP to TO have VH a DT better RBR paid VVN , , better RBR educated VVN workforce NN with IN greater JJR proportions NNS in IN associate NN professional JJ , , professional JJ and CC managerial JJ occupations NNS . SENT There EX is VBZ an DT inverse JJ relationship NN in IN growth NN between IN full JJ time NN and CC part NN time NN employment NN , , with IN full JJ time NN jobs NNS on IN the DT decline NN . SENT In IN investment NN banks NNS , , especially RB in IN the DT United NP Kingdom NP , , the DT employment NN situation NN was VBD hardly RB bright JJ in IN 1998 CD due JJ to TO the DT Asian JJ and CC Russian JJ financial JJ crises NNS , , which WDT occasioned VVD massive JJ lay VVD offs NNS . SENT Starting VVG in IN 1999 CD , , however RB , , the DT City NP of IN London NP merchant NN banks NNS have VHP beefed VVN up RP their PP$ staff NN by IN more JJR than IN 20 CD per IN cent NN . SENT The DT ferocious JJ acceleration NN of IN M NP As RB has VHZ encouraged VVN greater JJR recruitment NN . SENT SocGen NP , , which WDT employed VVN 1 CD , , 400 CD people NNS in IN the DT City NP at IN the DT end NN of IN 1998 CD , , had VHD 1 CD , , 800 CD by IN December NP 1999 CD . SENT The DT increase NN is VBZ explained VVN by IN a DT reinforcement NN of IN teams NNS in IN the DT areas NNS of IN corporate JJ finance NN , , research NN and CC trading NN . SENT This DT drive NN shows VVZ no DT signs NNS of IN running VVG out RP of IN steam NN any DT time NN soon RB . SENT Salomon NP Smith NP Barney NP , , for IN instance NN , , has VHZ announced VVN plans NNS to TO increase VV its PP$ strength NN from IN about RB 250 CD to TO approximately RB 450 CD bankers NNS in IN 2000 CD . SENT In IN addition NN to TO M NP A DT deals NNS in IN the DT financial JJ sector NN , , banks NNS are VBP called VVN upon RP to TO provide VV advisory JJ services NNS on IN M NP A DT operations NNS in IN other JJ industries NNS . SENT Given VVN the DT accelerating VVG propensity NN for IN consolidation NN , , which WDT makes VVZ it PP a DT growth NN area NN , , several JJ financial JJ services NNS institutions NNS are VBP interested VVN in IN acquiring VVG M NP A DT specialist NN banks NNS . SENT Chase NP Manhattan NP the DT third JJ largest JJS American JJ bank NN , , which WDT is VBZ itself PP a DT product NN of IN a DT 1995 CD merger NN between IN Chemical NP Banking NP and CC Chase NP Manhattan NP , , thus RB announced VVD the DT acquisition NN of IN the DT corporate JJ and CC investment NN bank NN , , Hambrecht NP and CC Quist NP . SENT In IN the DT same JJ vein NN , , BankAmerica NP had VHD previously RB taken VVN over IN Robertson NP Stephens NP and CC Montgomery NP Securities NPS . SENT Japanese JJ employment NN also RB stands VVZ to TO gain VV in IN some DT measure NN from IN the DT new JJ Japanese JJ inclination NN for IN M NP As RB . SENT The DT value NN of IN all DT M NP A NP deals NNS jumped VVD from IN 17 CD . SENT 5 CD billion CD in IN 1998 CD to TO 150 CD billion CD in IN 1999 CD . SENT 54 CD From IN 417 CD M NP As IN in IN the DT first JJ quarter NN of IN 1999 CD , , the DT number NN of IN deals NNS jumped VVD to TO 439 CD in IN the DT corresponding JJ period NN of IN 2000 CD . SENT This DT development NN is VBZ driving VVG an DT expansion NN in IN investment NN banking NN services NNS and CC employment NN , , making VVG investment NN banking NN and CC online JJ banking NN services NNS almost RB the DT only JJ growth NN area NN in IN recession NN hit VVD Japanese JJ financial JJ services NNS . SENT Since IN 1997 CD , , for IN instance NN , , Merrill NP Lynch NP has VHZ increased VVN its PP$ staff NN in IN Japan NP from IN 670 CD to TO 3 CD , , 650 CD , , while IN Goldman NP Sachs NP has VHZ doubled VVN the DT number NN of IN employees NNS to TO 1 CD , , 200 CD during IN the DT same JJ period NN , , and CC expects VVZ that DT figure NN to TO double VV again RB in IN the DT next JJ two CD to TO three CD years NNS . SENT From IN the DT point NN of IN view NN of IN employment NN , , M NP As RB clearly RB benefit VV the DT professionals NNS involved VVN , , investment NN banks NNS which WDT provide VVP specialized JJ advisory JJ services NNS , , public JJ relations NNS agencies NNS and CC legal JJ and CC accounting NN firms NNS . SENT In IN addition NN , , the DT growth NN of IN Internet NP financial JJ services NNS and CC the DT multiplication NN of IN new JJ small JJ and CC medium NN sized VVD market NN entrants NNS start VVP ups NNS and CC subsidiaries NNS of IN established JJ financial JJ institutions NNS does VVZ tend VV to TO reduce VV , , but CC not RB totally RB compensate VV for IN , , sectoral JJ job NN losses NNS . SENT Insufficient JJ time NN has VHZ passed VVN , , however RB , , to TO be VB able JJ to TO interpret VV these DT two CD trends NNS to TO ascertain VV the DT degree NN to TO which WDT they PP reduce VVP job NN losses NNS . SENT Lay VV offs NNS as IN an DT anti JJ takeover NN tool NN The DT 1999 CD contest NN for IN Britain NP s NN third JJ largest JJS high JJ street NN bank NN , , NatWest NP , , revolved VVN around IN claims NNS among IN protagonists NNS as IN to TO which WDT could MD secure VV the DT largest JJS job NN reductions NNS . SENT Since IN the DT Bank NP of IN Scotland NP and CC the DT Royal NP Bank NP of IN Scotland NP based VVD their PP$ rival JJ hostile JJ takeover NN bids NNS on IN claims NNS they PP would MD be VB able JJ to TO increase VV the DT target VVP s PP profitability NN through IN cost NN savings NNS , , the DT target NN immediately RB promised VVD a DT programme NN of IN measures NNS it PP would MD itself PP implement VV to TO reduce VV costs NNS , , including VVG the DT elimination NN of IN about IN 15 CD , , 000 CD jobs NNS between IN 1999 CD and CC 2002 CD . SENT NatWest NP was VBD unsuccessful JJ in IN its PP$ efforts NNS , , however RB , , as IN investors NNS were VBD unconvinced JJ that IN the DT measures NNS it PP proposed VVD cutting VVG 3 CD , , 400 CD , , or CC 6 CD per IN cent NN , , of IN its PP$ workforce NN would MD provide VV superior JJ or CC equal JJ savings NNS to TO those DT projected VVN for IN its PP$ besiegers NNS own JJ plans NNS . SENT Dresdner NP s PP plans VVZ to TO cut VV 5 CD , , 000 CD jobs NNS following VVG its PP$ aborted JJ mergers NNS with IN both DT Deutsch NP eBank NP and CC Commerzbank NP have VHP similarly RB been VBN viewed VVN by IN industry NN observers NNS as RB intended VVN to TO increase VV its PP$ defences NNS against IN takeovers NNS . SENT The DT rationale NN behind IN such JJ retrenchments NNS is VBZ usually RB that IN the DT financial JJ markets NNS appreciate VVP them PP as IN concrete JJ signals NNS of IN organizational JJ focus NN on IN reducing VVG costs NNS and CC increasing VVG shareholder NN value NN . SENT Such JJ pre NP emptive JJ action NN against IN potential JJ raids NNS is VBZ based VVN on IN the DT argument NN that IN management NN has VHZ previously RB not RB paid VVN sufficient JJ attention NN to TO raising VVG shareholder NN value NN by IN failing VVG to TO increase VV operational JJ efficiencies NNS and CC returns NNS on IN resources NNS it PP has VHZ been VBN entrusted VVN with IN . SENT The DT point NN to TO note VV however RB is VBZ that IN in IN the DT process NN employees NNS are VBP reduced VVN to TO a DT simple JJ cost NN adjustment NN variable NN . SENT the DT deeper JJR the DT jobs NNS are VBP cut VVN the DT better JJR the DT financial JJ markets NNS judge VVP the DT action NN , , even RB though IN the DT result NN might MD be VB to TO reduce VV the DT organization NN s PP operational JJ capability NN to TO generate VV the DT required VVN returns NNS . SENT Gender VV specific JJ effects NNS The DT European JJ finance NN sector NN provides VVZ a DT good JJ example NN of IN women NNS s PP access VV to TO professional JJ jobs NNS . SENT During IN the DT 1970 CD s PP and CC early RB 1980 CD s PP , , the DT growing VVG and CC diversifying VVG finance NN sector NN was VBD an DT important JJ source NN of IN women NNS s PP employment NN . SENT Even RB without IN the DT M NP A DT related JJ job NN reductions NNS , , however RB , , the DT 1990 CD s PP have VHP been VBN a DT period NN of IN stagnating VVG employment NN resulting VVG from IN growing VVG competition NN , , the DT increased JJ introduction NN of IN labour NN saving VVG information NN technologies NNS , , and CC the DT shift NN from IN traditional JJ finance NN jobs NNS to TO sales NNS and CC customer NN service NN . SENT These DT developments NNS have VHP considerably RB affected VVN women NNS s PP jobs NNS , , particularly RB those DT in IN areas NNS of IN finance NN such JJ as IN administration NN and CC branch NN operations NNS with IN a DT high JJ proportion NN of IN female JJ employees NNS . SENT For IN these DT vulnerable JJ women NNS workers NNS , , there EX is VBZ the DT possibility NN of IN reskilling VVG through IN continuing VVG training NN as IN part NN of IN affirmative JJ action NN initiatives NNS . SENT this DT should MD increase VV their PP$ chances NNS of IN successfully RB competing VVG for IN emerging VVG finance NN jobs NNS . SENT 55 CD In IN theory NN mergers NNS should MD provide VV employers NNS with IN ideal JJ opportunities NNS to TO demonstrate VV their PP$ commitment NN to TO best JJS practice NN in IN the DT area NN of IN non JJ discrimination NN and CC equality NN of IN opportunity NN . SENT In IN practice NN , , at IN the DT management NN level NN , , where WRB women NNS are VBP sparsely RB represented VVN , , mergers NNS have VHP sometimes RB been VBN equated VVN with IN the DT perceived VVN more RBR masculine JJ traits NNS of IN a DT military JJ operation NN , , with IN the DT acquirer NN assuming VVG the DT characteristic NN of IN victor NN or CC conqueror NN . SENT In IN most JJS countries NNS , , the DT financial JJ sector NN is VBZ characterized VVN by IN a DT predominately RB female JJ workforce NN at IN the DT lower JJR hierarchical JJ levels NNS and CC in IN a DT number NN of IN specific JJ occupational JJ categories NNS . SENT The DT distinction NN between IN men NNS s PP and CC women NNS s PP jobs NNS has VHZ , , as IN a DT general JJ rule NN , , traditionally RB manifested VVD itself PP by IN men NNS holding VVG the DT managerial JJ decision NN making VVG positions NNS and CC women NNS occupying VVG the DT majority NN of IN front NN and CC back JJ office NN clerical NN jobs NNS . SENT It PP has VHZ also RB been VBN intimated VVN that IN women NNS who WP move VVP into IN decision NN making VVG positions NNS in IN finance NN tend VVP to TO gravitate VV towards IN peripheral JJ managerial JJ jobs NNS , , perceived VVN to TO have VH lower JJR status NN . SENT There EX are VBP suggestions NNS that IN women NNS usually RB move VVP into IN areas NNS where WRB they PP may MD be VB able JJ to TO exercise VV high JJ levels NNS of IN skill NN and CC expertise NN but CC have VHP little RB effective JJ organizational JJ discretion NN . SENT These DT jobs NNS easily RB turn VVP dead JJ end NN in IN terms NNS of IN traditional JJ , , upwardly RB mobile JJ career NN advancement NN , , and CC gender NN segregation NN is VBZ thus RB reproduced VVD in IN new JJ forms NNS . SENT Clearly RB , , given VVN these DT gender NN characteristics NNS , , the DT integration NN of IN merged JJ organizations NNS must MD have VH different JJ outcomes NNS for IN men NNS and CC women NNS workers NNS , , as IN cost NN cutting NN tends VVZ to TO fall VV disproportionately RB on IN the DT functions NNS in IN which WDT women NNS are VBP disproportionately RB represented VVN . SENT Before IN the DT current JJ wave NN of IN M NP As IN in IN finance NN , , a DT feminization NN trend NN had VHD been VBN developing VVG in IN the DT sector NN in IN many JJ countries NNS since IN the DT 1980 CD s PP , , focusing VVG on IN branch NN management NN and CC administrative JJ functions NNS . SENT In IN Finland NP , , for IN example NN , , the DT proportion NN of IN female JJ branch NN managers NNS in IN some DT banks NNS was VBD approximately RB 7 CD per IN cent NN in IN 1983 CD , , but CC by IN 1992 CD had VHD risen VVN to TO over IN 37 CD per IN cent NN . SENT The DT initial JJ large JJ scale NN influx NN of IN women NNS into IN branch NN management NN took VVD place NN during IN a DT period NN of IN growth NN and CC expansion NN into IN new JJ business NN . SENT This DT influx NN coincided VVD with IN internal JJ banking NN reforms NNS which WDT transferred VVD corporate JJ banking NN knowledge NN and CC expertise NN from IN most JJS branches NNS and CC concentrated VVD them PP in IN specific JJ corporate JJ branches NNS , , leaving VVG local JJ branches NNS to TO focus VV almost RB entirely RB on IN retail JJ and CC SME NP customers NNS whereas IN previously RB all DT branches NNS had VHD offered VVN a DT range NN of IN services NNS to TO all DT client NN groups NNS . SENT The DT social JJ partners NNS and CC public JJ authorities NNS are VBP increasingly RB conscious JJ of IN the DT need NN for IN improvements NNS in IN the DT working VVG conditions NNS and CC career NN prospects NNS of IN women NNS at IN all DT levels NNS , , whether IN in IN low JJ skilled JJ functions NNS or CC in IN professional JJ , , supervisory JJ and CC management NN positions NNS . SENT Despite IN substantial JJ progress NN in IN the DT employment NN framework NN legislative JJ measures NNS , , policies NNS on IN equality NN of IN opportunity NN at IN the DT workplace NN , , improvements NNS in IN women NNS s PP professional JJ qualifications NNS and CC their PP$ increased JJ participation NN in IN economic JJ life NN the DT situation NN and CC characteristics NNS of IN men NNS and CC women NNS in IN banking NN and CC other JJ financial JJ institutions NNS continue VVP to TO be VB distinguished VVN by IN vast JJ inequality NN . SENT Women NNS remain VVP handicapped NNS relative JJ to TO men NNS regarding VVG professional JJ status NN , , pay NN and CC possibilities NNS for IN career NN progression NN . SENT In IN the DT context NN of IN M NP As RB , , changes NNS in IN work NN organization NN and CC job NN specification NN are VBP more RBR likely JJ to TO be VB detrimental JJ to TO women NNS given VVN the DT fact NN that IN they PP are VBP disproportionately RB represented VVN in IN part NN time NN work NN and CC are VBP therefore RB less RBR visible JJ to TO showcase NN their PP$ skills NNS and CC exercise VV their PP$ rights NNS . SENT Some DT academics NNS suggest VVP that IN rank NN and CC file NN workers NNS are VBP most RBS likely JJ to TO lose VV their PP$ jobs NNS in IN white JJ knight NN takeovers NNS , , while IN the DT reverse NN is VBZ true JJ in IN hostile JJ takeovers NNS , , when WRB management NN jobs NNS are VBP at IN greater JJR risk NN . SENT In IN all DT cases NNS , , however RB , , women NNS s PP experience VVP of IN mergers NNS is VBZ likely JJ to TO differ VV to TO that IN of IN men NNS . SENT If IN women NNS have VHP different JJ contracts NNS to TO men NNS or CC have VHP different JJ expectations NNS of IN the DT same JJ contracts NNS , , then RB M NP As RB may MD be VB gender NN insensitive JJ . SENT As IN a DT result NN of IN choice NN rather RB than IN discrimination NN , , many JJ women NNS prioritize VV the DT home NN rather RB than IN the DT workplace NN and CC choose VV work NN patterns NNS and CC contracts NNS that WDT reflect VVP this DT priority NN . SENT However RB , , this DT also RB means VVZ that DT women NNS are VBP more RBR liable JJ to TO be VB on IN contracts NNS and CC in IN positions NNS which WDT are VBP ripe JJ for IN rationalization NN . SENT They PP are VBP more RBR likely JJ to TO be VB flexible JJ or CC peripheral JJ workers NNS , , and CC if IN they PP are VBP core JJ workers NNS they PP are VBP more RBR likely JJ to TO be VB in IN lower JJR to TO middle NN than IN senior JJ management NN . SENT Moreover RB , , if IN women NNS place VVP greater JJR weight NN on IN the DT interpersonal JJ relationships NNS that IN work NN allows VVZ them PP , , it PP is VBZ more RBR probable JJ that IN they PP will MD experience VV stress NN as IN a DT reaction NN to TO the DT possible JJ loss NN of IN colleagues NNS because IN of IN M NP As RB . SENT 56 CD Using VVG data NNS from IN Project NP Servemploi NP , , an DT eight CD country NN study NN of IN women NNS s PP work VVP within IN retail JJ and CC financial JJ services NNS , , Collins NP and CC Wickham NP report NN encountering VVG women NNS who WP have VHP been VBN demoted VVN in IN post NN merger NN restructuring NN , , whose WP$ job NN titles NNS and CC responsibilities NNS have VHP altered VVN as IN they PP have VHP been VBN compelled VVN to TO take VV on IN tasks NNS associated VVN with IN both CC the DT old JJ and CC the DT new JJ companies NNS , , and CC whose WP$ line NN management NN has VHZ been VBN reorganized VVN so RB that IN they PP are VBP no RB longer RB sure JJ what WP it PP corresponds VVZ to TO and CC whether IN it PP is VBZ likely JJ to TO remain VV stable JJ . SENT Whilst IN these DT changes NNS had VHD not RB necessarily RB all RB been VBN negative JJ , , they PP did VVD call NN for IN considerable JJ adaptability NN and CC flexibility NN by IN employees NNS for IN which WDT they PP were VBD either RB not RB necessarily RB prepared VVN nor CC credited VVN . SENT In IN addition NN , , mergers NNS often RB involve VVP office NN closures NNS and CC the DT relocation NN of IN jobs NNS , , and CC some DT of IN the DT women NNS in IN the DT study NN had VHD been VBN relocated VVN . SENT In IN a DT case NN involving VVG a DT recently RB acquired VVN insurance NN company NN , , call NN centres NNS had VHD been VBN closed VVN and CC the DT customer NN advisors NNS had VHD been VBN offered VVN the DT opportunity NN to TO move VV to TO a DT call NN centre NN in IN another DT town NN . SENT Some DT had VHD done VVN so RB , , but CC were VBD finding VVG that IN having VHG to TO work VV at IN a DT distance NN from IN their PP$ homes NNS undermined VVD the DT very JJ reasons NNS they PP had VHD chosen VVN call NN centre NN employment NN in IN the DT first JJ place NN . SENT to TO be VB able JJ to TO manage VV work NN and CC childcare NN . SENT Evening NN work NN in IN nearby JJ call NN centres NNS allowed VVD many JJ women NNS with IN small JJ children NNS to TO coordinate VV childcare NN with IN their PP$ husbands NNS or CC partners NNS availability NN . SENT Commuting VVG further RBR to TO work VV made VVN this DT much RB more RBR difficult JJ , , and CC those DT who WP had VHD experienced VVN one CD merger NN were VBD more RBR likely JJ to TO leave VV the DT organization NN when WRB the DT company NN was VBD taken VVN over RP again RB . SENT 57 RB There EX has VHZ been VBN significant JJ progress NN in IN women NNS s PP employment NN in IN the DT financial JJ services NNS sector NN in IN recent JJ years NNS as IN a DT result NN of IN positive JJ action NN plans NNS and CC equal JJ opportunity NN programmes VVZ to TO improve VV women NNS s PP access NN to TO jobs NNS in IN fields NNS in IN which WDT they PP have VHP been VBN under IN represented VVN in IN the DT past NN . SENT According VVG to TO a DT research NN project NN by IN the DT Equal NP Opportunities NNS Unit NP DGV NP of IN the DT European NP Commission NP and CC the DT European NP Network NP , , entitled VVN Women NNS in IN Decision NN Making VVG , , more JJR than IN 40 CD per IN cent NN or CC up RB to TO half NN of IN all DT employees NNS in IN the DT banking NN and CC finance NN sector NN of IN most JJS EU NP Member NP States NPS are VBP female JJ . SENT 58 CD The DT project NN report NN discloses VVZ a DT slight JJ increase NN of IN women NNS in IN executive JJ positions NNS in IN recent JJ years NNS . SENT Among IN the DT banks NNS sample NN between IN 1990 CD and CC 1995 CD , , the DT proportion NN of IN women NNS in IN lower JJR management NN rose VVD from IN 25 CD to TO 27 CD per IN cent NN , , in IN middle JJ management NN from IN 13 CD to TO 17 CD per IN cent NN and CC in IN higher JJR management NN from IN 6 CD to TO 8 CD per IN cent NN . SENT There EX was VBD nevertheless RB still RB a DT considerable JJ gap NN between IN the DT proportion NN of IN women NNS employees NNS and CC women NNS managers NNS . SENT Whereas IN in IN 1995 CD women NNS accounted VVN for IN half NN of IN the DT employees NNS in IN the DT banks NNS sampled VVN , , they PP only RB represented VVD 16 CD per IN cent NN of IN their PP$ managerial JJ workforce NN . SENT The DT proportion NN of IN women NNS managers NNS decreases VVZ as IN they PP move VVP up RP the DT management NN scale NN . SENT Table NN 3 CD . SENT 13 CD . SENT Proportion NN of IN female JJ employees NNS and CC managers NNS in IN European JJ banks NNS , , 1995 CD Country NP groups NNS Female JJ employees NNS Female JJ managers NNS Lower JJR management NN Middle NN management NN Higher JJR management NN Number NP of IN banks NNS Scandinavian JJ 1 CD 61 CD . SENT 5 CD 22 CD . SENT 2 CD 38 CD . SENT 1 CD 23 CD . SENT 8 CD 14 CD . SENT 3 CD 7 CD Anglo NP Saxon NP 65 CD . SENT 2 CD 24 CD . SENT 4 CD 42 CD . SENT 8 CD 16 CD . SENT 2 CD 6 CD . SENT 8 CD 13 CD West JJ European NP 45 CD . SENT 6 CD 14 CD . SENT 0 CD 22 CD . SENT 2 CD 11 CD . SENT 1 CD 5 CD . SENT 0 CD 22 CD South JJ European NP 28 CD . SENT 9 CD 7 CD . SENT 9 CD 17 CD . SENT 5 CD 11 CD . SENT 3 CD 5 CD . SENT 9 CD 15 CD Subsidiaries NNS of IN foreign JJ banks NNS 2 CD 45 CD . SENT 4 CD 20 CD . SENT 6 CD 14 CD . SENT 7 CD 33 CD . SENT 7 CD 11 CD . SENT 0 CD 6 CD Total JJ 46 CD . SENT 6 CD 16 CD . SENT 1 CD 26 CD . SENT 8 CD 16 CD . SENT 5 CD 8 CD . SENT 4 CD 63 CD 1 CD . SENT Country NN groups NNS are VBP defined VVN as RB follows VVZ . SENT Finland NP , , Sweden NP and CC Denmark NP . SENT Great NP Britain NP and CC Ireland NP . SENT France NP , , Germany NP , , Austria NP and CC Benelux NP . SENT Spain NP , , Portugal NP , , Italy NP and CC Greece NP . SENT 2 LS . SENT Subsidiaries NNS of IN French JJ , , German JJ , , Dutch JJ and CC Belgian JJ banks NNS located VVN in IN Luxembourg NP , , Belgium NP , , Portugal NP and CC Greece NP . SENT Source NN . SENT Quack NN and CC Hanck NP , , op NN . SENT cit NNS . SENT , , p NN . SENT 48 CD . SENT The DT same JJ obstacles NNS discussed VVN by IN various JJ authors NNS as IN hindering VVG the DT access NN of IN women NNS to TO management NN positions NNS can MD also RB work VV to TO their PP$ detriment NN in IN downsizing NN situations NNS . SENT At IN the DT individual JJ level NN , , women NNS might MD lack NN the DT appropriate JJ education NN , , training NN or CC experience NN to TO be VB retained VVN during IN merger NN related JJ retrenchment NN . SENT This DT is VBZ particularly RB likely JJ to TO occur VV when WRB managers NNS from IN the DT amalgamating VVG organization NN are VBP competing VVG for IN fewer JJR positions NNS in IN the DT combined JJ company NN and CC such JJ criteria NNS as IN seniority NN in IN post NN and CC other JJ LIFO NN based VVN last JJ in IN , , first JJ out IN considerations NNS are VBP taken VVN into IN account NN . SENT Structural JJ and CC cultural JJ factors NNS can MD also RB be VB an DT obstacle NN . SENT Women NNS managers NNS might MD not RB have VH the DT same JJ professional JJ networks NNS and CC personal JJ contacts NNS at IN their PP$ disposal NN to TO enable VV them PP to TO compete VV for IN the DT remaining VVG positions NNS in IN the DT merged JJ company NN . SENT The DT male JJ values NNS which WDT dominate VVP financial JJ service NN organizations NNS and CC the DT gender NN stereotypes NNS and CC prejudices NNS of IN personnel NNS managers NNS in IN many JJ countries NNS can MD keep VV women NNS out RP of IN management NN positions NNS , , and CC slate NN them PP first RB for IN termination NN during IN restructuring NN . SENT At IN the DT social JJ level NN , , the DT unequal JJ distribution NN of IN family NN obligations NNS between IN men NNS and CC women NNS still RB makes VVZ it PP more RBR difficult JJ for IN women NNS to TO combine VV a DT management NN career NN and CC having VHG children NNS . SENT Various JJ combinations NNS of IN these DT factors NNS may MD work VV to TO ensure VV preference NN for IN men NNS s PP retention NN , , especially RB when WRB the DT idea NN that IN women NNS are VBP homemakers NNS and CC men NNS are VBP the DT breadwinners NNS is VBZ still RB strongly RB anchored VVN in IN local JJ culture NN . SENT The DT 1993 CD ILO NP report NN , , Social NP effects NNS of IN structural JJ change NN in IN banking NN , , highlighted VVD the DT fact NN that IN employment NN gains NNS and CC losses NNS in IN the DT financial JJ sector NN do VVP not RB affect VV men NNS and CC women NNS equally RB . SENT Most JJS research NN shows NNS that IN women NNS , , including VVG women NNS managers NNS , , are VBP disproportionately RB affected VVN by IN merger NN induced VVN job NN losses NNS in IN the DT financial JJ services NNS sector NN , , involving VVG a DT reversal NN of IN the DT modest JJ inroads NNS they PP were VBD beginning VVG to TO make VV into IN upper JJ management NN levels NNS . SENT Ample JJ evidence NN points NNS to TO the DT fact NN that IN the DT bulk NN of IN job NN losses NNS through IN restructuring NN affects VVZ middle JJ management NN positions NNS , , and CC the DT teller NN and CC clerical JJ functions NNS in IN which WDT women NNS workers NNS are VBP most RBS represented VVN . SENT A DT career NN in IN finance NN , , and CC banking NN in IN particular JJ , , was VBD traditionally RB considered VVN a DT male NN preserve VV . SENT Women NNS were VBD first RB employed VVN in IN the DT sector NN as IN clerks NNS , , rarely RB rising VVG beyond IN the DT rank NN of IN teller NN . SENT In IN many JJ parts NNS of IN the DT world NN , , banking NN remains VVZ male JJ dominated VVN , , with IN reports NNS of IN gender NN ratios NNS among IN bank NN employees NNS of IN 75 CD . SENT 25 CD . SENT In IN some DT countries NNS , , however RB , , the DT proportion NN of IN women NNS workers NNS in IN the DT financial JJ sector NN has VHZ recently RB risen VVN in IN response NN to TO officially RB sponsored VVN employment NN equity NN initiatives NNS . SENT Despite IN the DT general JJ increase NN in IN the DT number NN and CC proportion NN of IN women NNS employed VVN , , work NN in IN banks NNS still RB tends VVZ to TO be VB highly RB gender VV segregated JJ , , with IN women NNS concentrated VVN in IN the DT lowest JJS tier NN of IN the DT employment NN hierarchy NN , , where WRB as RB a DT rule NN they PP have VHP tended VVN to TO be VB clustered VVN in IN clerical JJ positions NNS , , data NNS processing NN or CC at IN the DT lower JJR management NN level NN . SENT In IN recent JJ years NNS , , women NNS worldwide RB have VHP also RB begun VVN to TO make VV some DT inroads NNS at IN both CC the DT middle NN and CC , , to TO a DT lesser JJR extent NN , , the DT upper JJ management NN levels NNS . SENT ILO NP data NNS show VVP that IN in IN the DT United NP States NP women NNS increased VVD their PP$ share NN as IN financial JJ managers NNS from IN 19 CD per IN cent NN in IN 1970 CD to TO 45 CD per IN cent NN in IN 1991 CD , , a DT score NN similar JJ to TO that DT of IN managers NNS in IN general NN . SENT National JJ statistics NNS in IN the DT United NP States NPS show VVP that IN by IN 1995 CD women NNS accounted VVD for IN just RB over IN 50 CD per IN cent NN of IN all DT financial JJ managers NNS . SENT 59 CD The NP ILO NP report NN , , Breaking VVG through IN the DT glass NN ceiling NN . SENT Women NNS in IN management NN discloses VVZ that IN the DT proportion NN of IN middle JJ level NN women NNS managers NNS in IN the DT financial JJ services NNS of IN large JJ companies NNS in IN France NP grew VVD from IN 15 CD per IN cent NN in IN 1982 CD to TO 26 CD per IN cent NN in IN 1990 CD a DT greater JJR increase NN than IN that DT achieved VVN by IN women NNS in IN management NN overall JJ . SENT In IN the DT United NP Kingdom NP the DT share NN of IN women NNS among IN financial JJ managers NNS rose VVD from IN 11 CD to TO 17 CD per IN cent NN in IN the DT 1980 CD s PP while IN , , in IN Hungary NP , , the DT proportion NN of IN women NNS among IN chief JJ accountants NNS and CC economic JJ managers NNS was VBD already RB as RB high JJ as IN 64 CD per IN cent NN in IN 1980 CD , , and CC increased VVD further RBR to TO 75 CD per IN cent NN by IN 1990 CD . SENT In IN Canada NP , , the DT proportion NN of IN women NNS in IN senior JJ management NN positions NNS rose VVD from IN 2 CD . SENT 6 CD per IN cent NN in IN 1987 CD to TO 20 CD . SENT 3 CD per IN cent NN in IN 1998 CD , , bringing VVG industry NN representation NN into IN line NN with IN the DT Government NP s PP benchmark JJ . SENT They PP also RB represented VVD 49 CD . SENT 2 CD per IN cent NN of IN all DT middle JJ managers NNS , , and CC 51 CD per IN cent NN of IN all DT professionals NNS in IN 1998 CD . SENT Many JJ national JJ studies NNS elsewhere RB reflect VVP similar JJ trends NNS . SENT Table NN 3 CD . SENT 14 CD . SENT Occupational JJ groups NNS by IN gender NN in IN British NP Columbia NP in IN four CD banks NNS proposing VVG to TO merge VV , , 1996 CD Occupation NN Employees NP Men NP Women NP Upper NP level NN managers NNS 48 CD 87 CD . SENT 5 CD 12 CD . SENT 5 CD Middle JJ and CC other JJ managers NNS 3 CD 076 CD 43 CD . SENT 3 CD 56 CD . SENT 7 CD Professionals NNS 625 CD 28 CD . SENT 0 CD 72 CD . SENT 0 CD Supervisors NPS 451 NP 9 CD . SENT 1 CD 90 CD . SENT 9 CD Clerical JJ workers NNS 4 CD 146 CD 11 CD . SENT 8 CD 88 CD . SENT 2 CD Source NN . SENT Government NN of IN Canada NP . SENT The DT employment NN impact NN of IN proposed VVN bank NN mergers NNS , , at IN http NN . SENT www JJ . SENT bankmergersbc NN . SENT gov NP . SENT bc NN . SENT ca MD emplimpact VV . SENT html NN . SENT Table NN 3 CD . SENT 14 CD presents VVZ the DT full JJ time NN gender NN employment NN structure NN in IN the DT British JJ Columbia NP operations NNS of IN four CD large JJ Canadian JJ banks NNS the DT Royal NP Bank NP and CC Bank NP of IN Montreal NP on IN the DT one CD hand NN and CC the DT Canadian JJ Imperial NP Bank NP of IN Commerce NP CIBC NP and CC the DT Toronto NP Dominion NP Bank NP on IN the DT other JJ which WDT had VHD applied VVN for IN supervisory JJ approval NN to TO merge VV into IN two CD . SENT Opponents NNS of IN the DT proposed VVN mergers NNS argued VVD successfully RB as IN it PP turned VVD out RP that IN , , as IN is VBZ the DT usual JJ pattern NN everywhere RB , , the DT mergers NNS would MD have VH negative JJ consequences NNS for IN employment NN because IN they PP would MD result VV in IN the DT rationalization NN of IN branches NNS and CC the DT retrenchment NN of IN branch NN employees NNS . SENT The DT most RBS likely JJ occupations NNS to TO be VB affected VVN would MD almost RB certainly RB be VB middle JJ and CC other JJ managers NNS , , supervisors NNS and CC clerical JJ workers NNS , , the DT majority NN of IN whom WP were VBD women NNS in IN all DT cases NNS . SENT A DT trend NN can MD be VB seen VVN in IN the DT services NNS industry NN , , including VVG finance NN , , similar JJ to TO that DT which WDT swept VVD manufacturing VVG previously RB , , involving VVG a DT flattening VVG of IN management NN structures NNS . SENT One CD of IN the DT results NNS of IN bank NN mergers NNS is VBZ usually RB the DT closure NN of IN branches NNS and CC the DT removal NN of IN whole JJ layers NNS of IN middle JJ management NN , , where WRB most JJS women NNS are VBP now RB concentrated VVN . SENT M NP As IN and CC the DT rationalization NN that WDT follows VVZ clearly RB affect VV women NNS workers NNS to TO a DT higher JJR degree NN than IN their PP$ male JJ counterparts NNS . SENT It PP is VBZ the DT lower JJR tier NN occupations NNS and CC middle JJ management NN positions NNS that WDT mostly RB disappear VVP in IN the DT restructuring NN and CC rationalization NN that WDT follow VVP most JJS M NP As IN . SENT In IN addition NN , , M NP A DT related JJ cost NN cutting VVG measures NNS combine VV with IN the DT trend NN towards IN flatter JJR management NN structures NNS to TO reverse VV women NNS s PP inroads NNS into IN middle JJ management NN positions NNS . SENT Even RB if IN some DT of IN the DT job NN losses NNS are VBP absorbed VVN through IN attrition NN , , the DT number NN of IN attractive JJ management NN positions NNS available JJ to TO female JJ candidates NNS shrinks VVZ , , promotion NN becomes VVZ more RBR difficult JJ and CC morale NN declines NNS . SENT It PP is VBZ obvious JJ therefore RB that IN , , unless IN affirmative JJ gender NN policies NNS are VBP adopted VVN to TO supplement VV merger NN induced VVN retrenchments NNS , , the DT progress NN so RB far RB recorded VVD vis FW vis FW women NNS s PP employment NN and CC advancement NN in IN finance NN will MD erode VV . SENT Tienari NNS 60 CD analyses NNS top JJ and CC middle JJ management NN within IN a DT domestic JJ Finnish JJ merger NN between IN two CD large JJ , , established JJ banks NNS Kansallis NP Banking NP Group NP and CC the DT Union NP Bank NP of IN Finland NP to TO conclude VV that IN the DT process NN is VBZ detrimental JJ to TO women NNS s PP employment NN in IN banks NNS . SENT The DT author NN argues VVZ that IN , , in IN merger NN implementation NN , , three CD central JJ problems NNS of IN integration NN have VHP been VBN identified VVN . SENT coordination NN , , control NN and CC conflict NN resolution NN . SENT Early RB on IN , , the DT need NN for IN standardized JJ management NN information NN systems NNS such JJ as IN reporting NN and CC budgeting NN arises VVZ . SENT It PP may MD also RB become VV necessary JJ to TO initially RB tighten VV controls NNS on IN decision NN making VVG at IN lower JJR managerial JJ levels NNS , , in IN order NN to TO establish VV a DT stable JJ operational JJ platform NN for IN integrating VVG two CD sets NNS of IN organizational JJ practices NNS . SENT This DT may MD again RB take VV place NN in IN conjunction NN with IN increasing VVG degrees NNS of IN formal JJ regulations NNS and CC procedures NNS aimed VVN at IN making VVG the DT new JJ organization NN more RBR predictable JJ and CC to TO moderate VV the DT effects NNS of IN uncertainty NN in IN terms NNS of IN individual JJ stress NN and CC post NN merger NN drift NN . SENT A DT horizontal JJ merger NN is VBZ an DT event NN of IN organized JJ change NN which WDT provides VVZ a DT stage NN for IN competition NN between IN individuals NNS , , both CC for IN core NN positions NNS and CC for IN more JJR peripheral JJ jobs NNS . SENT One CD outcome NN may MD be VB the DT exit NN of IN key JJ individuals NNS . SENT This DT is VBZ also RB a DT likely JJ occurrence NN beneath IN the DT level NN of IN two CD top JJ management NN teams NNS , , often RB the DT sole JJ focus NN of IN empirical JJ research NN on IN power NN struggles NNS and CC internal JJ competition NN within IN mergers NNS . SENT On IN the DT other JJ hand NN , , mergers NNS in IN contemporary JJ competitive JJ business NN environments NNS are VBP typically RB justified VVN by IN value NN maximizing VVG motives NNS . SENT Ever RB more RBR often RB , , mergers NNS incorporate VV downsizing VVG objectives NNS as IN two CD overlapping JJ organizations NNS are VBP compressed VVN into IN one CD to TO reap VV synergy NN benefits NNS . SENT Duplicated VVN operations NNS are VBP trimmed VVN , , and CC this DT typically RB entails VVZ dismissals NNS at IN all DT hierarchical JJ levels NNS of IN the DT organization NN . SENT Due JJ to TO the DT elimination NN of IN overlaps VVZ , , merger NN procedures NNS unfold VV as IN personal JJ and CC collective JJ survival NN games NNS for IN the DT individuals NNS involved VVN , , albeit IN often RB parallel JJ to TO an DT erosion NN of IN perceived VVN self NN efficacy NN . SENT 61 CD Consequently RB , , the DT re NN staffing NN of IN an DT organization NN following VVG a DT merger NN comes VVZ to TO resemble VV a DT large JJ scale NN recruitment NN process NN . SENT The DT past JJ performance NN of IN candidates NNS for IN each DT organizational JJ position NN is VBZ evaluated VVN and CC decisions NNS made VVD . SENT This DT process NN provides VVZ an DT opportunity NN to TO homogenize VV both DT traits NNS and CC practices NNS within IN the DT various JJ units NNS and CC functions NNS of IN the DT firm NN . SENT Putting VVG it PP provocatively RB , , merging VVG may MD present VV a DT unique JJ chance NN to TO get VV rid JJ of IN individuals NNS with IN suspected JJ , , unwanted JJ counter JJ cultural JJ beliefs NNS at IN all DT managerial JJ levels NNS . SENT The DT re NN staffing NN procedure NN may MD also RB take VV place NN in IN parallel NN to TO a DT redefinition NN of IN jobs NNS and CC positions NNS as RB well RB as IN to TO changes NNS in IN the DT hierarchical JJ ranking NN of IN these DT positions NNS . SENT Women NNS are VBP uniquely RB disadvantaged JJ in IN this DT process NN because IN of IN stereotypical JJ perceptions NNS of IN gender NN characteristics NNS . SENT The DT transformational JJ leadership NN popularly RB considered VVN to TO be VB a DT requirement NN in IN successfully RB fusing VVG two CD different JJ organizations NNS is VBZ seldom RB gender NN neutral JJ , , as IN images NNS of IN the DT ideal JJ organizational JJ member NN , , the DT top JJ manager NN , , and CC the DT organizational JJ hero NN tend VVP to TO be VB those DT of IN forceful JJ masculinity NN . SENT Training NN and CC reskilling NN associated VVN with IN M NP A DT related JJ change NN Professional JJ competence NN and CC interpersonal JJ skills NNS are VBP a DT decisive JJ competitive JJ factor NN in IN any DT service NN industry NN , , and CC nowhere RB more RBR so RB than IN in IN the DT financial JJ services NNS . SENT In IN addition NN , , the DT situation NN of IN a DT service NN company NN markedly RB differs VVZ from IN that DT of IN a DT manufacturer NN in IN that WDT the DT front JJ line NN staff NN of IN a DT service NN organization NN constitute VVP the DT tangible JJ view NN of IN the DT product NN . SENT While IN a DT manufacturer NN s PP customers NNS cannot NN observe VVP the DT incompetence NN and CC lack NN of IN skills NNS of IN production NN plant NN workers NNS , , any DT defaults NNS or CC lack NN of IN knowledge NN of IN in IN service NN company NN staff NN , , such JJ as IN those DT employed VVN in IN banks NNS and CC other JJ financial JJ services NNS organizations NNS , , are VBP painfully RB obvious JJ . SENT Twenty CD years NNS ago RB , , commercial JJ and CC savings NN banks NNS were VBD highly RB bureaucratic JJ organizations NNS whose WP$ prevalent JJ business NN activities NNS were VBD to TO take VV deposits NNS , , give VV credits NNS , , and CC organize VV the DT payment NN system NN within IN highly RB protected VVN and CC compartmentalized VVN national JJ markets NNS . SENT 62 CD Today NN banks NNS , , and CC other JJ financial JJ organizations NNS in IN general JJ , , are VBP becoming VVG more RBR flexible JJ organizations NNS that WDT offer VVP a DT wide JJ range NN of IN products NNS , , including VVG deposits NNS , , credits NNS , , payment NN systems NNS , , insurance NN , , credit NN cards NNS , , cash NN management NN , , and CC pension NN and CC mutual JJ funds NNS . SENT In IN addition NN , , they PP are VBP increasingly RB exposed VVN to TO greater JJR levels NNS of IN competition NN within IN deregulated VVN international JJ and CC national JJ markets NNS . SENT As IN a DT result NN of IN these DT developments NNS , , banks NNS have VHP shifted VVN from IN a DT transaction NN based VVN organizational JJ model NN toward IN a DT sales NNS and CC service NN orientation NN , , implying VVG the DT corresponding JJ changes NNS in IN work NN organization NN and CC skills NNS requirements NNS . SENT Changes NNS in IN enterprise NN structures NNS in IN which WDT front NN and CC back JJ office NN work NN is VBZ separated VVN as IN a DT result NN of IN greater JJR product NN standardization NN involves VVZ greater JJR specialization NN and CC a DT degree NN of IN deskilling NN . SENT In IN some DT cases NNS , , the DT demise NN of IN the DT traditional JJ branch NN employee NN with IN a DT full JJ range NN of IN banking NN skills NNS means VVZ that DT jobs NNS are VBP narrower JJR and CC more RBR routine JJ and CC require VV less JJR skill NN . SENT In IN others NNS , , however RB , , branch NN staff NN are VBP expected VVN to TO be VB able JJ to TO perform VV any DT front JJ office NN task NN apart RB from IN the DT provision NN of IN substantial JJ loans NNS and CC more JJR complex JJ financial JJ products NNS . SENT 63 CD Employees NNS must MD be VB familiar JJ with IN a DT far RB wider JJR range NN of IN products NNS than IN in IN the DT past NN , , in IN addition NN to TO possessing VVG the DT traditional JJ banking NN skills NNS involved VVN in IN performing VVG quick JJ and CC accurate JJ transactions NNS . SENT Furthermore RB , , although IN the DT sales NNS culture NN may MD involve VV set NN scripts NNS and CC computerized JJ customer NN profiles NNS , , it PP undoubtedly RB requires VVZ new JJ skills NNS . SENT These DT developments NNS point VVP towards IN a DT change NN in IN staff NN profiles NNS from IN traditional JJ skills NNS in IN favour NN of IN marketing NN , , IT PP and CC more JJR sophisticated JJ value NN added VVD services NNS . SENT As IN more JJR functions NNS are VBP shifted VVN to TO technology NN based VVN platforms NNS , , the DT outsourcing NN of IN IT PP related VVN activities NNS is VBZ likely JJ to TO increase VV . SENT Training NN has VHZ always RB been VBN an DT important JJ focus NN of IN human JJ resource NN practices NNS in IN financial JJ institutions NNS . SENT the DT changing VVG nature NN of IN training NN practices NNS is VBZ linked VVN to TO changes NNS in IN strategy NN generally RB and CC the DT decline NN of IN a DT generalist NN career NN path NN . SENT The DT emphasis NN on IN both DT cost NN reduction NN and CC a DT sales NNS and CC service NN orientation NN has VHZ led VVN to TO a DT greater JJR targeting VVG of IN training NN toward IN specific JJ jobs NNS rather RB than IN the DT development NN of IN employees NNS who WP have VHP expertise NN across IN the DT full JJ range NN of IN skills NNS . SENT The DT fragmentation NN of IN internal JJ labour NN markets NNS has VHZ amplified VVN this DT trend NN , , with IN different JJ groups NNS of IN employees NNS perceived VVN as IN requiring VVG a DT different JJ quality NN and CC degree NN of IN training NN and CC education NN . SENT 64 RB The DT radical JJ transformation NN of IN the DT competitive JJ environment NN in IN the DT financial JJ services NNS requires VVZ an DT ever RB more RBR highly RB skilled JJ and CC effective JJ workforce NN , , and CC there EX has VHZ therefore RB been VBN a DT logical JJ shift NN from IN purely RB administrative JJ functions NNS towards IN those DT with IN greater JJR commercial JJ content NN in IN which WDT the DT emphasis NN is VBZ on IN providing VVG advice NN and CC the DT know VVP how WRB that IN the DT bank NN can MD place VV at IN its PP$ customers NNS service NN . SENT 65 CD To TO meet VV all PDT these DT needs NNS , , staff NN are VBP expected VVN to TO be VB more RBR flexible JJ , , adaptable JJ and CC versatile JJ in IN their PP$ skills NNS . SENT With IN the DT increased JJ use NN of IN IT PP , , the DT demand NN for IN computer NN skills NNS is VBZ growing VVG . SENT As RB might MD be VB expected VVN of IN a DT sector NN undergoing VVG extensive JJ change NN and CC which WDT , , in IN addition NN , , is VBZ a DT major JJ user NN of IN technology NN , , the DT financial JJ services NNS sector NN in IN many JJ countries NNS has VHZ invested VVN heavily RB in IN employee NN training NN . SENT The DT Canadian NP Bankers NPS Association NP reports NNS increased VVD investment NN by IN its PP$ members NNS in IN human JJ capital NN . SENT Training NN by IN Canada NP s NN six CD largest JJS banks NNS rose VVD by IN 12 CD per IN cent NN between IN 1995 CD and CC 1997 CD to TO a DT total NN of IN Canadian JJ dollars NNS 301 CD million CD or CC an DT average NN of IN C NP 1 CD , , 500 CD per IN employee NN about IN 2 CD . SENT 8 CD per IN cent NN of IN total JJ payroll NN . SENT CBA NP reported VVD that IN training NN opportunities NNS were VBD offered VVN to TO employees NNS whose WP$ functions NNS might MD become VV eliminated VVN so RB that IN they PP could MD move VV into IN different JJ or CC new JJ business NN areas NNS . SENT Other JJ support NN to TO educational JJ and CC training NN programmes NNS by IN the DT industry NN included VVD activities NNS aimed VVN at IN promoting VVG youth NN employment NN , , such JJ as IN sponsoring VVG educational JJ , , internship NN , , entrepreneurial JJ and CC stay VV in IN school NN programmes NNS , , as RB well RB as IN offers NNS of IN scholarships NNS and CC the DT hosting VVG of IN conferences NNS on IN youth NN unemployment NN underemployment NN . SENT Given VVN the DT competitive JJ importance NN of IN having VHG highly RB skilled JJ staff NN , , banks NNS increasingly RB view VVP themselves PP as IN learning VVG organizations NNS where WRB continuous JJ learning NN should MD be VB encouraged VVN . SENT In IN addition NN , , training NN facilitates VVZ the DT redeployment NN of IN staff NN whose WP$ functions NNS may MD be VB eliminated VVN , , either CC into IN different JJ or CC new JJ business NN areas NNS and CC increases VVZ the DT possibility NN of IN re NN employment NN of IN retrenched VVN staff NN . SENT Total JJ investment NN in IN training NN , , percentage NN of IN payroll NN average NN expenditure NN per IN employee NN and CC the DT number NN of IN participants NNS in IN training NN programmes NNS all RB show VVP substantial JJ increases NNS . SENT Banks NNS compare VVP favourably RB to TO other JJ employers NNS when WRB it PP comes VVZ to TO staff VV training NN . SENT Comparable JJ though IN varying VVG levels NNS of IN investment NN in IN skills NNS are VBP reported VVN in IN different JJ countries NNS and CC regions NNS . SENT According VVG to TO the DT Belgian NP Bankers NPS Association NP , , their PP$ sector NN is VBZ investing VVG considerably RB in IN training NN . SENT While IN Belgian JJ enterprises NNS in IN general JJ only RB devote VVP the DT equivalent NN of IN about IN 1 CD . SENT 2 CD per IN cent NN of IN payroll NN to TO training NN and CC are VBP , , as IN a DT result NN , , behind IN the DT European JJ average NN of IN 1 CD . SENT 9 CD per IN cent NN , , the DT comparable JJ figure NN for IN the DT Belgian JJ banking NN sector NN is VBZ 4 CD per IN cent NN . SENT Generally RB speaking VVG , , the DT acceleration NN in IN the DT introduction NN of IN IT PP and CC the DT effects NNS of IN M NP As RB are VBP convincing VVG many JJ financial JJ service NN providers NNS to TO significantly RB modify VV training NN programmes NNS . SENT In IN addition NN , , European JJ banks NNS unlike IN their PP$ American JJ counterparts NNS which WDT increasingly RB encourage VVP their PP$ clients NNS to TO carry VV out RP as RB many JJ of IN their PP$ operations NNS by IN Internet NN as IN possible JJ are VBP seeking VVG a DT balance NN between IN remote JJ banking NN and CC traditional JJ staff NN supported VVD service NN . SENT This DT choice NN in IN mode NN of IN service NN mix NN again RB has VHZ considerable JJ implications NNS for IN staff NN training NN requirements NNS , , including VVG a DT sufficiently RB high JJ grasp NN of IN customers NNS expectations NNS and CC the DT specific JJ products NNS matching VVG their PP$ needs NNS . SENT From IN an DT employee NN perspective NN , , there EX is VBZ some DT evidence NN that IN occupational JJ attachment NN is VBZ increasing VVG even RB as IN tenure NN with IN a DT given VVN employer NN may MD be VB declining VVG , , and CC this DT raises VVZ the DT importance NN of IN the DT issue NN of IN investment NN in IN continuous JJ training NN . SENT Yet RB while IN employees NNS may MD have VH greater JJR interest NN in IN developing VVG their PP$ occupational JJ skills NNS because IN they PP will MD be VB using VVG them PP longer RBR , , employers NNS may MD be VB less RBR inclined VVN to TO provide VV those DT skills NNS or CC to TO finance VV their PP$ acquisition NN because IN the DT increased JJ worker NN mobility NN in IN the DT new JJ working NN environment NN implies VVZ that IN they PP are VBP less RBR likely JJ to TO gain VV a DT full JJ return NN on IN their PP$ investment NN . SENT Trade NN unions NNS similarly RB feel VVP that IN training NN policies NNS need VVP to TO underpin VV technological JJ and CC other JJ changes NNS , , and CC point NN to TO grading VVG problems NNS raised VVN by IN the DT multiskilled JJ nature NN of IN the DT jobs NNS of IN some DT front JJ office NN customer NN service NN workers NNS . SENT Many JJ feel VVP that IN it PP is VBZ the DT task NN of IN employers NNS to TO anticipate VV new JJ jobs NNS more RBR precisely RB and CC design VV human JJ resource NN plans NNS and CC development NN programmes NNS accordingly RB . SENT In IN this DT connection NN , , M NP As RB should MD not RB be VB haphazard JJ operations NNS but CC be VB strategically RB planned VVN . SENT If IN that DT were VBD the DT case NN , , both DT recruitment NN and CC personnel JJ development NN policies NNS , , including VVG appropriate JJ training NN to TO match VV anticipated JJ post NN merger NN skills NNS , , would MD be VB integrated VVN into IN organizational JJ strategies NNS to TO avoid VV lay VV offs NNS and CC favour NN redeployment NN instead RB . SENT People NNS s PP sense VVP of IN insecurity NN has VHZ much RB to TO do VV with IN how WRB they PP assess VVP the DT worth NN of IN their PP$ skills NNS and CC competencies NNS in IN relation NN to TO rapidly RB changing VVG labour NN market NN needs VVZ , , their PP$ access NN to TO training NN opportunities NNS and CC their PP$ ability NN to TO upgrade VV them PP and CC have VH them PP recognized VVN . SENT Knowing VVG that IN one PP possesses VVZ skills NNS that WDT are VBP in IN high JJ demand NN reduces VVZ the DT sense NN of IN insecurity NN . SENT Given VVN the DT demise NN of IN the DT implied JJ promise NN of IN lifetime NN or CC at IN least JJS long JJ term NN employment NN inherent JJ in IN past JJ employment NN relationships NNS , , workers NNS are VBP increasingly RB demanding VVG that IN a DT substitute NN , , at IN least JJS emphasizing VVG a DT promise NN of IN employability NN , , be VB developed VVN to TO compensate VV for IN their PP$ increased JJ job NN insecurity NN . SENT In IN an DT industry NN where WRB massive JJ restructuring NN and CC job NN losses NNS have VHP become VVN commonplace JJ as IN a DT result NN of IN technological JJ innovation NN , , mergers NNS and CC other JJ competitive JJ factors NNS , , the DT importance NN of IN a DT new JJ approach NN cannot NN be VB overstressed VVN . SENT Employees NNS view VVP inadequate JJ training NN and CC development NN in IN the DT absence NN of IN employers NNS commitment NN to TO long JJ term NN job NN security NN , , as IN an DT added JJ assault NN on IN the DT psychological JJ contract NN . SENT It PP is VBZ unsurprising VVG therefore RB that IN a DT recent JJ survey NN of IN staff NN in IN a DT major JJ bank NN by IN the DT Finance NP Sector NN Union NP of IN Australia NP FSU NP found VVD 90 CD per IN cent NN of IN respondents NNS rating VVG improved JJ access NN to TO training NN as IN important JJ or CC very RB important JJ . SENT In IN another DT survey NN , , 82 CD per IN cent NN of IN respondents NNS believed VVN that IN they PP would MD benefit VV from IN having VHG skills NNS which WDT were VBD recognized VVN by IN other JJ employers NNS , , while IN over IN 50 CD per IN cent NN of IN them PP also RB believed VVD the DT company NN would MD rather RB employ VV new JJ people NNS with IN the DT desired VVN skills NNS than IN train NN existing VVG staff NN . SENT It PP is VBZ a DT paradox NN of IN today NN s PP highly RB competitive JJ market NN environment NN that IN many JJ enterprises NNS are VBP less RBR willing JJ to TO train VV and CC manage VV their PP$ human JJ resources NNS as IN they PP have VHP short JJ term NN planning NN horizons NNS and CC often RB little JJ knowledge NN about IN their PP$ long JJ term NN skills NNS requirements NNS . SENT In IN addition NN , , they PP seldom RB provide VVP skills NNS training VVG for IN fear NN of IN poaching VVG by IN competitors NNS , , unless IN there EX are VBP adequate JJ cost NN sharing VVG arrangements NNS . SENT And CC firms NNS are VBP generally RB providing VVG no DT training NN at IN all RB to TO the DT growing VVG numbers NNS of IN casual JJ and CC temporary JJ employees NNS . SENT Yet RB research NN , , especially RB in IN the DT United NP States NPS , , demonstrates VVZ that IN training NN and CC development NN can MD be VB key JJ retention NN tools NNS , , 66 CD and CC that IN the DT most RBS common JJ reason NN for IN employees NNS to TO leave VV their PP$ job NN in IN the DT United NP States NPS was VBD a DT better JJR opportunity NN elsewhere RB , , followed VVN by IN a DT lack NN of IN opportunity NN for IN advancement NN and CC enrichment NN . SENT Trade NN unions NNS argue VVP that IN with IN a DT changed JJ employment NN relationship NN , , skills NNS development NN and CC training NN opportunities NNS rather RB than IN just RB pay NN must MD become VV integral JJ to TO reward VV systems NNS . SENT Sufficiency NN of IN training NN is VBZ beginning VVG to TO rate NN as IN high JJ , , if IN not RB very RB high JJ on IN trade NN union NN agendas NNS . SENT In IN many JJ financial JJ organizations NNS , , however RB , , there EX is VBZ growing VVG recognition NN that IN staff NN skills NNS , , abilities NNS and CC knowledge NN are VBP a DT crucial JJ competitive JJ asset NN in IN the DT increasingly RB commodity NN oriented JJ markets NNS for IN financial JJ products NNS . SENT Employers NNS are VBP consequently RB seeking VVG to TO hire VV highly RB trained VVN workers NNS and CC are VBP providing VVG supplementary JJ training NN in IN both DT basic JJ skills NNS and CC new JJ techniques NNS to TO their PP$ staff NN . SENT Criticism NN has VHZ nevertheless RB been VBN voiced VVN regarding VVG disparities NNS between IN management NN rhetoric NN about IN work NN needing VVG to TO be VB customer NN service NN driven VVN , , and CC practical JJ application NN especially RB in IN both DT bank NN and CC insurance NN call NN centres VVZ when WRB people NNS hired VVD for IN their PP$ customer NN service NN skills NNS quickly RB learn VVP that IN what WP is VBZ rewarded VVN is VBZ the DT volume NN not RB the DT quality NN of IN service NN provided VVD . SENT An DT ILO NP report NN 67 CD submitted VVN to TO the DT 88 CD th NN Session NP of IN the DT International NP Labour NN Conference NN in IN 2000 CD , , stresses VVZ the DT growing VVG demand NN for IN continuing VVG education NN and CC training NN CET NN for IN employability NN . SENT One CD of IN several JJ contributing VVG factors NNS is VBZ enterprises NNS seeking VVG to TO enhance VV their PP$ competitiveness NN . SENT In IN addition NN , , many RB displaced VVN and CC vulnerable JJ workers NNS need VVP CET NP because IN their PP$ skills NNS are VBP specific JJ to TO one CD employer NN or CC sector NN , , putting VVG them PP at IN higher JJR risk NN of IN unemployment NN if IN they PP lose VVP their PP$ jobs NNS . SENT The DT long JJ term NN unemployed NN whose WP$ skills NNS have VHP deteriorated VVN and CC whose WP$ confidence NN has VHZ ebbed VVN need VV CET NP to TO boost VV their PP$ chances NNS of IN getting VVG a DT job NN . SENT Second JJ chance NN workers NNS who WP dropped VVD out RP of IN general JJ education NN and CC or CC training VVG at IN an DT early JJ stage NN need VVP CET NP to TO make VV up RP for IN lost VVN opportunities NNS , , and CC many JJ people NNS simply RB wish VVP to TO continue VV learning VVG as IN technology NN and CC the DT world NN of IN work NN continue VVP to TO change VV . SENT The DT report NN notes VVZ that DT workplace NN training NN and CC learning VVG programmes NNS often RB depend VVP on IN the DT size NN and CC type NN of IN the DT enterprise NN and CC the DT type NN of IN work NN organization NN and CC management NN culture NN . SENT Multinational JJ and CC large JJ enterprises NNS tend VVP to TO approach VV CET NP in IN a DT systematic JJ manner NN and CC to TO make VV in IN service NN training NN investment NN an DT integral JJ part NN of IN their PP$ human JJ resource NN and CC total JJ quality NN management NN policies NNS and CC practices NNS . SENT A DT few JJ have VHP even RB started VVN to TO integrate VV human JJ resource NN investment NN into IN their PP$ accounting NN systems NNS , , just RB as IN they PP would MD any DT other JJ investment NN in IN physical JJ capital NN . SENT In IN the DT context NN of IN the DT financial JJ sector NN , , organizations NNS increasingly RB expect VVP their PP$ human JJ resource NN management NN practices NNS and CC new JJ forms NNS of IN work NN organization NN to TO provide VV close JJ support NN for IN their PP$ competition NN strategies NNS . SENT Despite IN the DT increased JJ enterprise NN demand NN for IN CET NP , , overall JJ firm NN investment NN in IN training NN has VHZ been VBN insufficient JJ , , except IN in IN countries NNS with IN a DT tradition NN of IN on IN the DT job NN training NN e NN . SENT g NN . SENT Denmark NP , , Germany NP , , Japan NP and CC Switzerland NP . SENT If IN employee NN turnover NN is VBZ high JJ , , firms NNS may MD be VB reluctant JJ to TO train VV workers NNS . SENT Firms NNS that IN risk NN having VHG their PP$ staff NN poached VVD tend VV to TO limit VV investment NN to TO non JJ portable JJ firm NN specific JJ training NN . SENT and CC smaller JJR firms NNS generally RB provide VVP limited JJ training NN as IN they PP often RB face VVP higher JJR training NN costs NNS per IN employee NN . SENT A DT recent JJ study NN reports VVZ one CD in IN five CD Dutch JJ , , one CD in IN four CD American JJ , , almost RB 30 CD per IN cent NN of IN Swiss NP and CC a DT third JJ of IN Canadian JJ workers NNS all RB felt VVD they PP were VBD not RB receiving VVG the DT training NN they PP needed VVD . SENT Many JJ studies NNS show VVP that IN women NNS workers NNS are VBP less RBR likely JJ to TO receive VV employer NN sponsored VVN training NN . SENT 68 RB The DT widespread JJ use NN of IN IT PP , , financial JJ product NN innovation NN , , changing VVG customer NN attitudes NNS and CC expectations NNS expanded VVD choice NN , , transparency NN , , increased VVD cultural JJ and CC competence NN levels NNS are VBP modifying VVG the DT nature NN and CC structure NN of IN finance NN employment NN . SENT There EX is VBZ a DT marked JJ decline NN in IN administrative JJ functions NNS and CC their PP$ replacement NN by IN employment NN in IN management NN services NNS . SENT Other JJ changes NNS , , such JJ as IN reductions NNS in IN headquarters NN staff NN a DT trend NN accelerated VVN by IN M NP As RB , , or CC an DT increase NN in IN subcontracting VVG representing VVG a DT form NN of IN reversion NN to TO core NN competencies NNS are VBP under IN way NN . SENT All PDT these DT trends NNS have VHP implications NNS for IN the DT type NN of IN initial JJ training NN , , but CC especially RB for IN the DT lifelong JJ learning VVG requirements NNS of IN finance NN workers NNS . SENT In IN Europe NP , , the DT first JJ major JJ international JJ call NN centres NNS were VBD Dutch JJ , , British JJ and CC Irish JJ because IN of IN relatively RB flexible JJ labour NN practices NNS and CC the DT multilingual JJ capacities NNS of IN local JJ workers NNS . SENT The DT upgrading NN of IN teleworkers NNS skills NNS is VBZ driven VVN by IN the DT fact NN that IN they PP have VHP to TO operate VV in IN a DT multimedia NNS environment NN , , interacting VVG with IN clients NNS over IN the DT telephone NN and CC directing VVG them PP towards IN the DT financial JJ products NNS best RBS suited VVN to TO their PP$ needs NNS , , etc FW . SENT The DT skills NNS enhancement NN of IN staff NN may MD well RB become VV another DT consequence NN of IN this DT sector NN s PP concentration NN . SENT There EX are VBP particular JJ concerns NNS regarding VVG those DT on IN temporary JJ contracts NNS , , interspersed VVN with IN unemployment NN , , who WP are VBP likely JJ to TO see VV their PP$ skills NNS and CC competencies NNS deteriorate VVP faster RBR than IN those DT of IN permanent JJ employees NNS , , as IN they PP often RB have VHP less JJR access NN to TO in IN service NN and CC continuous JJ training NN . SENT This DT especially RB affects VVZ women NNS , , who WP are VBP liable JJ to TO become VV less RBR employable JJ over IN time NN and CC risk NN social JJ exclusion NN . SENT Maintaining VVG and CC renewing VVG these DT workers NNS skills NNS is VBZ an DT important JJ issue NN . SENT Some DT countries NNS , , particularly RB in IN the DT European NP Union NP , , have VHP integrated VVN basic JJ social JJ rights NNS , , including VVG the DT right NN to TO training NN , , into IN labour NN codes NNS that WDT extend VVP to TO workers NNS on IN temporary JJ contracts NNS . SENT 4 LS . SENT Managing VVG downsizing NN related VVN to TO M NP A DT restructuring NN While IN M NP As RB are VBP driven VVN largely RB by IN financial JJ considerations NNS , , their PP$ success NN vitally RB depends VVZ on IN the DT motivation NN of IN retained JJ workers NNS to TO contribute VV to TO the DT achievement NN of IN merger NN objectives NNS . SENT The DT high JJ proportion NN of IN failed JJ M NP As RB may MD not RB be VB unrelated JJ to TO the DT manner NN in IN which WDT staff NN are VBP often RB relegated VVN to TO cost VV variables NNS rather RB than IN being VBG made VVN active JJ partners NNS in IN the DT change NN process NN . SENT Social JJ plans NNS , , guarantees NNS against IN forced VVN departures NNS and CC the DT involvement NN of IN staff NN in IN M NP A DT related JJ decision NN making NN are VBP critical JJ motivating VVG factors NNS . SENT The DT study NN referred VVD to TO in IN Chapter NP 1 CD 69 CD concluded VVN that IN the DT failure NN of IN the DT overwhelming JJ majority NN of IN M NP As RB resulted VVD from IN concentration NN on IN hard JJ legal JJ and CC finance NN issues NNS to TO the DT detriment NN of IN the DT soft JJ people NNS issues NNS in IN merger NN planning NN and CC implementation NN . SENT Poor JJ communications NNS with IN employees NNS appeared VVD to TO pose VV a DT greater JJR risk NN than IN that DT with IN shareholders NNS , , suppliers NNS or CC customers NNS . SENT The DT study NN found VVD that DT success NN was VBD linked VVN to TO a DT holistic JJ approach NN when WRB the DT soft JJ people NNS and CC cultural JJ issues NNS were VBD an DT integral JJ part NN of IN the DT focus NN on IN financial JJ performance NN . SENT Of IN the DT companies NNS involved VVN in IN the DT survey NN , , just RB nine CD less JJR than IN 10 CD per IN cent NN of IN respondents NNS addressed VVD all PDT the DT soft JJ keys NNS , , and CC each DT was VBD successful JJ . SENT The DT study NN stresses VVZ the DT fact NN that IN once RB value NN was VBD lost VVN , , it PP was VBD seldom RB recovered VVN . SENT Even RB though IN possibly RB the DT most RBS difficult JJ to TO implement VV effectively RB , , headcount NN reduction NN was VBD the DT area NN in IN which WDT most JJS companies NNS reported VVD achieving VVG their PP$ targets NNS . SENT Loss NN of IN staff NN an DT inevitable JJ result NN of IN M NP As IN often RB included VVN the DT very JJ individuals NNS the DT acquirer NN needed VVN and CC intended VVN to TO keep VV to TO succeed VV . SENT M NP A NP value NN extraction NN was VBD impossible JJ without IN the DT enthusiastic JJ cooperation NN of IN employees NNS . SENT Apart RB from IN organizational JJ impacts NNS such JJ as IN reduced JJ commitment NN , , motivation NN and CC productivity NN , , constant JJ restructuring NN sometimes RB produces VVZ other JJ perverse JJ effects NNS for IN the DT employer NN . SENT The DT Finance NP Sector NN Union NP of IN Australia NP FSU NP reports VVZ that DT redundancy NN has VHZ become VVN so RB common JJ and CC job NN insecurity NN and CC work NN intensification NN so RB prevalent JJ in RB downsized VVD organizations NNS , , that DT retrenchment NN is VBZ sought VVN after IN for IN the DT pot NN of IN gold NN it PP can MD provide VV . SENT Companies NNS spend VVP time NN and CC money NN convincing VVG workers NNS to TO accept VV redeployment NN rather RB than IN retrenchment NN . SENT Indeed RB , , workers NNS often RB prefer VVP retrenchment NN , , arguing VVG that IN their PP$ position NN is VBZ not RB comparable JJ to TO the DT previous JJ cue NN , , is VBZ not RB within IN reasonable JJ commuting VVG distance NN and CC alters VVZ their PP$ contract NN . SENT some DT prefer VVP to TO stick VV around RP in IN case NN the DT next JJ restructure NN delivers VVZ the DT pot NN of IN gold NN . SENT In IN the DT current JJ M NP A DT induced VVN restructuring NN and CC industrial JJ relations NNS climate NN in IN the DT financial JJ services NNS sector NN , , all DT stakeholders NNS have VHP a DT vested JJ interest NN in IN determining VVG practices NNS best JJS able JJ to TO mitigate VV the DT impact NN of IN downsizing NN on IN workers NNS and CC the DT future JJ profitability NN of IN their PP$ enterprises NNS . SENT No DT universal JJ solutions NNS exist VVP to TO successfully RB merge VV and CC downsize VV each DT organization NN must MD develop VV programmes NNS that WDT address VVP the DT concerns NNS of IN all PDT its PP$ stakeholders NNS , , remembering VVG that DT constant JJ communication NN with IN employees NNS is VBZ critical JJ . SENT A DT paper NN prepared VVN as IN a DT background NN report NN for IN the DT ILO NP High NP level NN Tripartite JJ Meeting VVG on IN Social NP Responses NNS to TO the DT Financial NP Crisis NN in IN East NP and CC South NP East NP Asian NP Countries NPS , , held VVN in IN Bangkok NP in IN April NP 1998 CD , , reviews VVZ some DT international JJ experience NN in IN trying VVG to TO prevent VV and CC limit VV worker NN displacement NN caused VVN by IN adverse JJ economic JJ conditions NNS . SENT These DT and CC other JJ examples NNS culled VVN from IN various JJ sources NNS are VBP relevant JJ to TO M NP A DT related JJ restructuring NN . SENT Policies NNS and CC practices NNS on IN worker NN displacement NN The DT way NN in IN which WDT the DT post NN merger NN employment NN situation NN develops VVZ is VBZ largely RB contingent JJ upon IN employers NNS obligations NNS towards IN their PP$ workers NNS in IN terms NNS of IN consultation NN , , information NN , , notification NN , , compensation NN and CC redeployment NN under IN the DT laws NNS , , culture NN and CC practices NNS of IN the DT country NN concerned VVN . SENT European NP Union NP Adjustment NN processes VVZ in IN continental JJ western JJ Europe NP are VBP based VVN on IN cooperation NN among IN the DT social JJ partners NNS , , with IN strong JJ industrial JJ relations NNS frameworks NNS encouraging JJ co NP determination NN in IN decisions NNS with IN important JJ human JJ resource NN implications NNS . SENT European NP Union NP regulations NNS provide VVP procedures NNS for IN informing VVG and CC consulting VVG employees NNS and CC the DT Collective JJ Redundancies NNS Directive NN 75 CD 129 CD EEC NN and CC 92 CD 56 CD EEC NN requires VVZ an DT employer NN contemplating VVG collective JJ redundancies NNS to TO start VV consultations NNS with IN workers NNS representatives NNS before IN hard JJ decisions NNS are VBP taken VVN . SENT Trade NN unions NNS , , notably RB in IN the DT United NP Kingdom NP , , have VHP accused VVN some DT employers NNS of IN ignoring VVG these DT regulations NNS , , of IN rarely RB providing VVG prior JJ information NN or CC of IN consulting VVG their PP$ workers NNS before IN M NP As IN and CC accompanying JJ retrenchments NNS are VBP announced VVN on IN grounds NNS of IN secrecy NN to TO prevent VV insider NN dealing NN . SENT Takeover NN codes NNS typically RB require VVP companies NNS to TO minimize VV the DT risk NN of IN information NN being VBG leaked VVN . SENT Regulations NNS also RB stipulate VV that WDT , , apart RB from IN senior JJ management NN and CC their PP$ advisers NNS in IN the DT companies NNS concerned JJ , , inside JJ information NN should MD be VB confined VVN to TO a DT very RB restricted VVN number NN of IN persons NNS . SENT however RB , , they PP allow VVP the DT companies NNS to TO decide VV whom WP to TO inform VV under IN obligations NNS of IN absolute JJ secrecy NN . SENT The DT takeover NN panel NN in IN the DT United NP Kingdom NP has VHZ determined VVD there EX is VBZ no DT reason NN why WRB worker NN representatives NNS could MD not RB be VB included VVN among IN the DT insiders NNS to TO comply VV with IN employers NNS obligations NNS on IN prior JJ information NN and CC consultation NN . SENT Japan NP Life NP time NN employment NN has VHZ long RB been VBN considered VVN the DT standard JJ employment NN arrangement NN . SENT Large JJ corporations NNS typically RB hire VVP workers NNS directly RB from IN schools NNS , , provide VV extensive JJ on IN the DT job NN training NN throughout IN their PP$ careers NNS and CC employ VV them PP until IN they PP retire VVP . SENT Lay NP offs NNS are VBP acceptable JJ only RB if IN taken VVN as IN a DT last JJ resort NN , , when WRB alternative JJ measures NNS such JJ as IN reduction NN of IN overtime NN , , retraining VVG , , transfer VV within IN the DT enterprise NN and CC among IN its PP$ subsidiaries NNS and CC networks NNS of IN companies NNS cannot NN absorb VV all PDT the DT surplus NN workers NNS . SENT Such JJ requirements NNS are VBP not RB written VVN in IN statutes NNS but CC are VBP established VVN exclusively RB through IN court NN precedents NNS . SENT Courts NNS have VHP held VVN that DT long JJ term NN contracts NNS be VB assumed VVN by IN new JJ companies NNS in IN case NN of IN mergers NNS or CC takeovers NNS and CC voided VVN dismissals NNS where WRB no DT consent NN or CC consultation NN with IN unions NNS had VHD taken VVN place NN . SENT 70 CD Current JJ Japanese JJ practice NN reflects VVZ strong JJ social JJ expectations NNS of IN acceptable JJ corporate JJ behaviour NN , , rather RB than IN labour NN legislation NN , , requiring VVG employers NNS to TO consult VV with IN unions NNS or CC employee NN representatives NNS when WRB formulating VVG restructuring NN plans NNS that WDT might MD have VH lay VVD off RP consequences NNS . SENT There EX are VBP growing VVG indications NNS , , however RB , , that IN these DT traditions NNS are VBP eroding VVG . SENT United NP States NPS The DT situation NN in IN the DT United NP States NPS is VBZ very RB different JJ from IN that DT in IN Japan NP and CC managers NNS have VHP extensive JJ prerogative NN to TO discharge VV workers NNS under IN the DT employment NN at IN will NN doctrine NN . SENT Few JJ restrictions NNS exist VVP on IN how WRB employers NNS may MD change VV the DT level NN of IN employment NN within IN their PP$ firms NNS , , creating VVG a DT constant JJ upheaval NN in IN both DT employment NN and CC enterprise NN markets NNS and CC greater JJR reliance NN on IN the DT external JJ labour NN market NN to TO absorb VV redundant JJ workers NNS . SENT Employment NN security NN is VBZ consequently RB a DT major JJ issue NN in IN collective JJ bargaining NN . SENT Although IN the DT Worker NP Adjustment NN and CC Retraining VVG Notification NN Act NN of IN 1988 CD WARN VVP tempers VVZ the DT United NP States NPS tradition NN of IN fire NN at IN pleasure NN by IN requiring VVG firms NNS with IN more JJR than IN 50 CD employees NNS to TO give VV 60 CD days NNS notice VVP of IN impending VVG lay VV offs NNS to TO workers NNS and CC the DT community NN , , there EX is VBZ no DT stipulation NN for IN advance NN consultations NNS with IN unions NNS or CC workers NNS , , much RB less JJR negotiating NN alternatives NNS or CC social JJ plans NNS with IN them PP . SENT Canada NP The NP Conference NP Board NP of IN Canada NP CBC NP has VHZ developed VVN guidelines NNS proposing VVG best JJS practices NNS in IN restructuring NN , , highlighting VVG voluntary JJ and CC involuntary JJ strategies NNS and CC stressing VVG that DT planning NN for IN the DT exercise NN should MD be VB aligned VVN with IN a DT clear JJ vision NN of IN the DT organization NN s PP future JJ . SENT respect NN and CC fairness NN in IN dealings NNS with IN employees NNS . SENT and CC great JJ concern NN with IN communications NNS . SENT The DT right JJ mix NN of IN programmes NNS includes VVZ . SENT reduction NN of IN inward RB flow NN of IN employees NNS . SENT increased JJ flexibility NN for IN internal JJ staff NN redeployment NN . SENT increased JJ outflow NN of IN employees NNS . SENT or CC a DT reduction NN in IN the DT cost NN of IN incumbent JJ employees NNS . SENT Each DT of IN these DT approaches NNS is VBZ dependent JJ upon IN the DT particular JJ organization NN s PP culture NN and CC desired VVN restructuring NN outcomes NNS . SENT Practices NNS to TO avoid VV involuntary JJ lay VVP offs NNS include VVP . SENT reducing VVG the DT inward RB flow NN of IN employees NNS through IN attrition NN and CC hiring VVG freezes NNS . SENT increasing VVG the DT flexibility NN of IN internal JJ transfers NNS , , accompanied VVN by IN training NN where WRB necessary JJ . SENT providing VVG incentives NNS to TO increase VV the DT outward RB flow NN of IN employees NNS through IN early JJ retirements NNS , , buyouts NNS or CC lump NN sum NN payments NNS . SENT and CC business NN start NN up IN assistance NN . SENT The DT CBC NP suggests VVZ additional JJ incentives NNS for IN departing VVG staff NN in IN terms NNS of IN continued JJ health NN and CC life NN insurance NN benefits NNS for IN a DT period NN of IN time NN and CC tuition NN fees NNS up RB to TO a DT defined VVN maximum NN . SENT Programmes NNS to TO reduce VV the DT cost NN of IN maintaining VVG existing JJ workforce NN levels NNS range VVP from IN temporary JJ or CC permanent JJ work NN week NN modifications NNS and CC leave VV of IN absence NN . SENT Where WRB there EX is VBZ insufficient JJ uptake NN of IN voluntary JJ incentives NNS , , companies NNS may MD have VH to TO initiate VV involuntary JJ terminations NNS to TO meet VV restructuring NN objectives NNS within IN established JJ timeframes NNS . SENT The DT CBC NP stresses VVZ the DT need NN for IN this DT downsizing NN exercise NN which WDT should MD revolve VV around IN severance NN packages NNS , , outplacement NP , , training NN and CC relocation NN , , thereby RB contributing VVG to TO an DT easing NN of IN the DT transition NN process NN for IN both DT departing VVG and CC remaining VVG staff NN . SENT It PP refers VVZ to TO those DT organizations NNS complying VVG with IN best JJS practices NNS as IN those DT which WDT often RB exceed VVP the DT statutory JJ severance NN requirements NNS in IN order NN to TO reduce VV the DT economic JJ and CC psychological JJ impact NN on IN the DT outgoing JJ employee NN . SENT provide VV outplacement NP counselling VVG to TO decrease VV the DT impact NN of IN the DT job NN loss NN by IN facilitating VVG the DT grieving VVG process NN . SENT and CC assist VV the DT exiting VVG employee NN find VV meaningful JJ employment NN or CC skills NNS training NN as IN quickly RB as RB possible JJ . SENT Australia NP Proposed VVD mergers NNS of IN financial JJ institutions NNS in IN Australia NP must MD be VB authorized VVN by IN the DT Australian JJ Competition NN and CC Consumer NP Commission NP ACCC NP and CC the DT Australian JJ Treasury NN . SENT No DT explicit JJ provisions NNS exist VVP recognizing VVG the DT right NN of IN workers NNS and CC their PP$ representatives NNS to TO be VB involved VVN , , except IN in IN so RB far RB as IN they PP are VBP part NN of IN an DT interested JJ public NN . SENT Section NP 6 CD . SENT 8 CD of IN the DT ACCC NP s PP merger NN guidelines NNS provides VVZ that IN any DT interested JJ party NN may MD make VV a DT submission NN open JJ for IN inspection NN on IN a DT public JJ register NN and CC there EX may MD be VB provision NN for IN a DT conference NN of IN interested JJ parties NNS . SENT International JJ labour NN standards NNS relevant JJ to TO worker NN displacement NN The DT ILO NP Termination NN of IN Employment NP Convention NP , , 1982 CD No DT . SENT 158 CD , , and CC its PP$ accompanying JJ Recommendation NN No RB . SENT 166 CD , , set VVN out RP , , as IN a DT basic JJ principle NN , , that IN the DT employment NN of IN a DT worker NN shall MD not RB be VB terminated VVN unless IN for IN a DT valid JJ reason NN connected VVN with IN the DT capacity NN or CC conduct NN of IN the DT worker NN or CC the DT operational JJ requirements NNS of IN the DT undertaking NN . SENT Part NP III NP of IN the DT Convention NP relates VVZ to TO consultation NN of IN workers NNS representatives NNS and CC to TO notification NN to TO the DT competent JJ public JJ authority NN . SENT Paragraphs NNS 21 CD and CC 22 CD of IN Recommendation NN No RB . SENT 166 JJ reflect VVP the DT principle NN that IN when WRB employers NNS are VBP obliged VVN to TO introduce VV changes NNS , , they PP should MD first RB consider VV all DT other JJ possible JJ measures NNS that WDT would MD allow VV them PP to TO avoid VV terminations NNS . SENT Measures NNS put VVD forward RB by IN the DT Recommendation NN aim NN at IN reducing VVG the DT number NN of IN workers NNS by IN voluntary JJ means NNS early JJ retirement NN with IN appropriate JJ income NN protection NN , , natural JJ reduction NN of IN the DT workforce NN , , internal JJ transfers NNS , , restrictions NNS on IN hiring NN and CC work NN sharing NN restriction NN of IN overtime NN work NN and CC reduction NN of IN normal JJ hours NNS of IN work NN . SENT The DT legislation NN and CC collective JJ agreements NNS of IN many JJ countries NNS provide VVP for IN the DT supply NN of IN information NN to TO workers NNS representatives NNS and CC consultations NNS . SENT These DT regulations NNS aim VVP at IN easing VVG tensions NNS created VVN by IN redundancies NNS and CC giving VVG the DT workers NNS representatives NNS an DT opportunity NN to TO present VV their PP$ point NN of IN view NN , , to TO make VV alternative JJ proposals NNS or CC negotiate VV on IN the DT planned JJ reductions NNS . SENT Convention NP No NP . SENT 158 CD stipulates VVZ that IN when WRB the DT employer NN contemplates VVZ terminations NNS for IN reasons NNS of IN an DT economic JJ , , technological JJ , , structural JJ or CC similar JJ nature NN , , 71 CD the DT employer NN shall MD . SENT a DT provide VVP the DT workers NNS representatives NNS concerned VVN in IN good JJ time NN with IN relevant JJ information NN including VVG the DT reasons NNS for IN the DT terminations NNS contemplated VVN , , the DT number NN and CC categories NNS of IN workers NNS likely JJ to TO be VB affected VVN and CC the DT period NN over IN which WDT the DT terminations NNS are VBP intended VVN to TO be VB carried VVN out RP . SENT b SYM give VV , , in IN accordance NN with IN national JJ law NN and CC practice NN , , the DT workers NNS representatives NNS concerned JJ , , as RB early RB as IN possible JJ , , an DT opportunity NN for IN consultation NN on IN measures NNS to TO be VB taken VVN to TO avert VV or CC to TO minimize VV the DT terminations NNS and CC to TO mitigate VV the DT adverse JJ effects NNS of IN any DT terminations NNS on IN the DT workers NNS concerned JJ , , such JJ as IN finding VVG alternative JJ employment NN . SENT Although IN legislation NN in IN the DT field NN of IN collective JJ dismissals NNS varies VVZ considerably RB between IN countries NNS , , much JJ legislation NN insists VVZ on IN prior JJ consultations NNS with IN workers NNS representatives NNS and CC the DT timely JJ communication NN of IN information NN on IN dismissal NN to TO the DT labour NN administrative JJ authorities NNS . SENT In IN many JJ countries NNS , , legislation NN establishes VVZ the DT basic JJ points NNS of IN this DT procedure NN , , while IN inter VV occupational JJ collective JJ agreements NNS and CC framework NN agreements NNS play VVP a DT key JJ role NN and CC are VBP often RB supplemented VVN by IN industrial JJ or CC sectoral JJ agreements NNS . SENT 5 LS . SENT Impact NN of IN M NP As IN on IN working NN and CC employment NN conditions NNS A DT merger NN or CC takeover NN in IN many JJ ways NNS invalidates VVZ the DT employment NN contract NN . SENT the DT worker NN is VBZ now RB working VVG for IN someone NN else RB , , but CC without IN having VHG taken VVN any DT steps NNS to TO change VV employers NNS . SENT 72 CD It PP brings VVZ home NN in IN the DT most RBS emphatic JJ manner NN the DT one CD sidedness NN of IN the DT employment NN relationship NN and CC the DT fact NN that IN workers NNS have VHP no DT control NN over IN the DT decisions NNS of IN their PP$ employer NN . SENT M NP As RB have VHP sometimes RB been VBN described VVN as IN a DT legitimate JJ means NN for IN breaking VVG implicit JJ contracts NNS in IN order NN to TO restructure VV . SENT The DT firm NN is VBZ a DT nexus NN of IN implicit JJ and CC explicit JJ contracts NNS which WDT only RB work VVP on IN the DT basis NN of IN trust NN between IN managers NNS and CC workers NNS , , itself PP underpinned VVN by IN beliefs NNS and CC assumptions NNS regarding VVG mutual JJ responsibility NN between IN employer NN and CC employee NN the DT psychological JJ contract NN . SENT Job NN security NN derives VVZ more RBR from IN assumptions NNS which WDT M NP As RB have VHP the DT effect NN of IN disrupting VVG . SENT A DT change NN of IN management NN allows VVZ alterations NNS in IN implicit JJ contracts NNS , , facilitated VVN by IN the DT fact NN that IN change NN is VBZ indeed RB expected VVN . SENT Rightly RB or CC wrongly RB , , M NP As RB can MD thus RB appear VV a DT deliberate JJ strategy NN to TO violate VV internal JJ norms NNS and CC as IN a DT brute JJ exercise NN of IN power NN . SENT Most RBS importantly RB , , integrating VVG differing VVG company NN systems NNS and CC procedures NNS requires VVZ harmonization NN of IN various JJ aspects NNS of IN terms NNS and CC conditions NNS of IN employment NN . SENT pay NN scales NNS , , job NN titles NNS , , entitlements NNS and CC other JJ benefits NNS , , job NN descriptions NNS , , reporting NN and CC supervisory JJ lines NNS are VBP all RB subject JJ to TO revision NN to TO ensure VV common JJ practice NN in IN the DT newly RB combined VVN organization NN . SENT Another DT important JJ consequence NN of IN restructuring NN is VBZ the DT growth NN of IN non JJ standard JJ forms NNS of IN employment NN , , variously RB defined VVN as IN part NN time NN , , temporary JJ or CC contingent JJ work NN . SENT An DT ILO NP report NN 73 CD identifies VVZ two CD basic JJ pressures NNS on IN enterprises NNS to TO expand VV non JJ standard JJ employment NN . SENT The DT first JJ is VBZ the DT pressure NN to TO shift VV labour NN from IN a DT fixed VVN to TO a DT variable JJ cost NN , , particularly RB in IN countries NNS where WRB collective JJ agreements NNS increase VVP the DT fixed JJ costs NNS of IN employment NN and CC labour NN legislation NN does VVZ not RB cover VV non JJ standard JJ forms NNS of IN work NN . SENT The DT second NN is VBZ to TO shift VV work NN away RB from IN high JJ cost NN internal JJ labour NN markets NNS to TO more RBR competitive JJ , , lower JJR cost NN external JJ labour NN markets NNS . SENT A DT third JJ possible JJ pressure NN favouring VVG the DT adoption NN of IN non JJ standard JJ work NN is VBZ the DT introduction NN of IN a DT system NN of IN high JJ performance NN work NN organization NN , , with IN its PP$ emphasis NN on IN flexibility NN , , responsiveness NN and CC just RB in IN time NN production NN . SENT A DT mid JJ 1990 CD s PP study VVP in IN the DT United NP States NPS confirmed VVD that IN companies NNS relied VVN on IN temporary JJ or CC contingent JJ workers NNS for IN the DT flexibility NN to TO respond VV quickly RB and CC effectively RB to TO changing VVG market NN conditions NNS . SENT Non JJ standard JJ work NN is VBZ growing VVG in IN many JJ developed JJ countries NNS . SENT In IN the DT United NP States NP it PP now RB accounts VVZ for IN roughly RB 30 CD per IN cent NN of IN employment NN , , with IN the DT number NN of IN temporary JJ workers NNS having VHG almost RB tripled VVN since IN the DT early JJ 1980 CD s PP . SENT In IN Europe NP part NN time NN work NN has VHZ grown VVN rapidly RB , , especially RB in IN countries NNS where WRB it PP is VBZ one CD of IN the DT few JJ ways NNS for IN employers NNS to TO avoid VV the DT high JJ fixed JJ costs NNS of IN regular JJ employment NN . SENT In IN 1999 CD , , almost RB one CD in IN three CD workers NNS in IN Switzerland NP , , or CC 1 CD , , 139 CD , , 000 CD out IN of IN 3 CD . SENT 9 CD million CD , , were VBD on IN part NN time NN . SENT As RB might MD be VB expected VVN , , part NN time NN work NN is VBZ largely RB feminine JJ , , with IN more JJR than IN one CD in IN two CD women NNS compared VVN to TO one CD man NN in IN ten CD . SENT Significantly RB , , 82 CD per IN cent NN of IN posts NNS with IN reduced JJ hours NNS are VBP occupied VVN by IN women NNS . SENT Relative JJ percentages NNS for IN the DT Australian JJ finance NN sector NN are VBP 29 CD and CC six CD for IN women NNS and CC men NNS respectively RB , , while IN part NN time NN work NN as IN a DT whole NN in IN the DT Netherlands NP accounts NNS for IN 39 CD . SENT 4 CD per IN cent NN of IN total JJ employment NN . SENT In IN Japan NP , , several JJ factors NNS , , including VVG an DT increased JJ focus NN on IN short JJ term NN returns NNS rather RB than IN the DT traditional JJ attachment NN to TO long JJ term NN employment NN relations NNS , , have VHP increased VVN the DT share NN of IN part NN time NN work NN to TO 25 CD per IN cent NN of IN all DT jobs NNS . SENT 74 CD M NP As RB , , remuneration NN and CC other JJ compensation NN issues NNS Two CD conflicting JJ aims NNS appear VVP to TO characterize VV current JJ practices NNS in IN financial JJ sector NN remuneration NN . SENT the DT need NN to TO reduce VV labour NN costs NNS within IN a DT context NN of IN increasing VVG competition NN and CC decreasing VVG profitability NN and CC the DT necessity NN to TO compensate VV and CC adequately RB reward VV employee NN performance NN and CC commitment NN within IN an DT environment NN of IN continuous JJ and CC challenging JJ change NN . SENT 75 CD Recent JJ trends NNS in IN compensation NN policies NNS are VBP moving VVG towards IN more JJR contingent NN , , individualized VVN and CC explicitly RB performance NN based VVN systems NNS , , while IN seeking VVG to TO retain VV workers NNS loyalty NN and CC commitment NN to TO organizational JJ goals NNS . SENT This DT might MD explain VV why WRB changes NNS in IN compensation NN have VHP tended VVN to TO be VB less RBR dramatic JJ than IN expected VVN compared VVN with IN both DT current JJ rhetoric NN and CC experience NN in IN other JJ industries NNS . SENT The DT main JJ exception NN to TO the DT industry NN trend NN is VBZ the DT United NP States NP , , where WRB in IN the DT absence NN of IN a DT collective JJ wage NN agreement NN or CC any DT kind NN of IN coordination NN between IN banks NNS in IN wage NN setting NN , , wide JJ differences NNS in IN compensation NN levels NNS both CC between IN and CC within IN financial JJ institutions NNS have VHP always RB been VBN the DT rule NN . SENT Sales NNS based VVN bonuses NNS , , either DT individual NN based VVN as IN for IN lenders NNS in IN wholesale JJ operations NNS or CC distributed VVN via IN managers NNS to TO branch NN offices NNS , , are VBP the DT most RBS widespread JJ example NN of IN incentives NNS , , while IN commissions NNS have VHP become VVN common JJ for IN crucial JJ jobs NNS , , such JJ as IN investment NN advisors NNS . SENT 76 RB The DT gradual JJ sector NN wide JJ shift NN from IN pay NN and CC reward NN systems NNS based VVN primarily RB on IN age NN and CC length NN of IN service NN , , to TO one CD based VVN on IN job NN evaluation NN , , has VHZ gone VVN some DT way NN in IN recognizing VVG changing VVG employment NN relationships NNS and CC providing VVG a DT common JJ base NN for IN establishing VVG pay NN procedures NNS even RB after IN M NP As RB . SENT Trade NN unions NNS argue VVP , , however RB , , that IN changes NNS to TO the DT psychological JJ contract NN including VVG erosion NN in IN job NN security NN have VHP been VBN so RB great JJ as RB to TO require VV a DT rethink NN of IN reward NN systems NNS . SENT Workers NNS most RBS common JJ concerns NNS are VBP linked VVN to TO what WP they PP consider VVP a DT lack NN of IN transparency NN about IN the DT process NN . SENT a DT perception NN that IN performance NN assessments NNS are VBP too RB subjective JJ . SENT and CC belief NN that IN line NN managers NNS are VBP insufficiently RB trained VVN to TO assess VV performance NN . SENT The DT trade NN unions NNS point VVP to TO an DT inherent JJ contradiction NN between IN objectives NNS requiring VVG team NN based VVN work NN and CC performance NN assessments NNS focusing VVG on IN individual JJ contribution NN and CC call NN for IN better JJR balanced JJ individual NN and CC team NN based VVN rewards NNS . SENT A DT similar JJ disconnection NN is VBZ identified VVN between IN performance NN management NN schemes NNS and CC desired VVN productivity NN outcomes NNS as RB well RB as IN the DT lack NN of IN mechanisms NNS for IN recognizing VVG consistently RB good JJ performance NN , , suggesting VVG that DT pay NN should MD be VB determined VVN by IN analysing VVG outcomes NNS and CC employee NN contributions NNS to TO their PP$ achievement NN . SENT Many JJ workers NNS believe VVP they PP are VBP not RB properly RB rewarded VVN for IN embracing VVG changed VVN employment NN conditions NNS and CC for IN their PP$ contribution NN to TO company NN performance NN . SENT A DT recent JJ survey NN of IN over IN 3 CD , , 000 CD employees NNS in IN a DT major JJ Australian JJ bank NN reflects VVZ the DT perception NN that IN companies NNS reward NN systems NNS are VBP failing VVG to TO gain VV their PP$ worker NN commitment NN and CC identification NN with IN corporate JJ goals NNS . SENT Nearly RB 70 CD per IN cent NN felt VVD performance NN bonuses NNS were VBD unfairly RB distributed VVN , , 67 CD per IN cent NN did VVD not RB believe VV there EX should MD be VB salary NN reductions NNS even RB if IN performance NN declined VVD while IN 40 CD per IN cent NN did VVD not RB consider VV performance NN appraisals NNS were VBD fairly RB conducted VVN . SENT Only RB 27 CD per IN cent NN were VBD even RB confident JJ they PP understood VVD the DT new JJ performance NN management NN system NN . SENT A DT similar JJ survey NN of IN 2 CD , , 700 CD employees NNS in IN another DT bank NN revealed VVD that IN only RB 18 CD per IN cent NN of IN respondents NNS believed VVD their PP$ employer NN s PP bonus NN and CC incentive NN scheme NN was VBD well RB designed VVN and CC fairly RB paid VVN . SENT The DT introduction NN of IN a DT new JJ performance NN related JJ pay NN system NN at IN a DT bank NN in IN the DT United NP Kingdom NP , , which WDT led VVD to TO a DT strike NN , , underlines VVZ the DT possible JJ consequences NNS of IN getting VVG the DT system NN and CC process NN of IN introduction NN wrong JJ . SENT Avoiding VVG such JJ problems NNS may MD require VV including VVG the DT principles NNS or CC processes NNS of IN performance NN based VVN reward NN systems NNS in IN enterprise NN agreements NNS after IN appropriate JJ consultations NNS with IN workers NNS representatives NNS . SENT Indeed RB , , a DT recent JJ collective JJ agreement NN in IN a DT major JJ insurance NN company NN sets NNS out RB agreed VVD principles NNS for IN the DT creation NN of IN a DT competitive JJ , , equitable JJ and CC transparent JJ process NN and CC establishes VVZ a DT joint JJ partnership NN arrangement NN between IN the DT company NN and CC the DT union NN for IN the DT introduction NN of IN a DT new JJ system NN of IN job NN classification NN and CC evaluation NN . SENT Another DT area NN of IN interest NN relates VVZ to TO flexible JJ pay NN and CC decentralization NN of IN the DT bargaining NN structure NN . SENT According VVG to TO the DT European NP Industrial NP Relations NPS Observatory NN EIRO NP , , in IN the DT 2000 CD bargaining NN round NN , , large JJ employers NNS in IN the DT Netherlands NPS have VHP sought VVN more RBR flexible JJ pay NN systems NNS , , while IN trade NN unions NNS have VHP opposed VVN virtually RB all DT such JJ arrangements NNS . SENT In IN Sweden NP , , the DT Finansf NP rbundet NP Finance NP Union NP FSU NP , , reports VVZ greater JJR orientation NN towards IN individualized VVN pay NN . SENT Banks NNS have VHP instituted VVN bonus NN and CC stock NN option NN schemes NNS . SENT MeritaNordbanken NP , , the DT biggest JJS bank NN , , provides VVZ special JJ three CD year NN bonuses NNS for IN staff NN it PP considers VVZ indispensable JJ . SENT Decentralization NN , , which WDT the DT unions NNS accept VVP to TO a DT certain JJ degree NN subject NN to TO continued JJ regulation NN of IN pay NN and CC working VVG hours NNS at IN the DT central JJ level NN , , is VBZ also RB gaining VVG ground NN both CC at IN sectoral JJ level NN and CC among IN larger JJR groups NNS of IN companies NNS . SENT Employers NNS associations NNS consider VVP the DT simplification NN of IN current JJ collective JJ agreements NNS allowing VVG different JJ issues NNS to TO be VB regulated VVN at IN different JJ levels NNS necessary JJ to TO reduce VV detail NN and CC bulkiness NN . SENT Trade NN unions NNS are VBP not RB opposed VVN to TO the DT idea NN in IN principle NN , , but CC propose VV a DT three CD tier NN structure NN of IN economy NN wide JJ framework NN agreements NNS mainly RB for IN . SENT occupational JJ social JJ security NN . SENT sectoral JJ agreements NNS on IN pay NN , , working VVG hours NNS , , job NN evaluation NN and CC other JJ remuneration NN related VVN elements NNS . SENT and CC enterprise NN specific JJ issues NNS regulated VVN in IN consultation NN with IN works NNS councils NNS . SENT Many JJ companies NNS , , including VVG financial JJ institutions NNS , , believe VVP that IN converting VVG their PP$ workers NNS into IN shareholders NNS can MD be VB an DT effective JJ tool NN for IN employee NN reward NN and CC anti JJ takeover NN defence NN , , as IN worker NN shareholders NNS would MD almost RB certainly RB oppose VV any DT hostile JJ bids NNS for IN their PP$ enterprise NN . SENT Banking NP has VHZ a DT greater JJR tendency NN than IN many JJ other JJ sectors NNS to TO award NN employees NNS share NN options NNS through IN employee NN share NN ownership NN programmes VVZ ESOPs NNS as IN supplements NNS to TO basic JJ pay NN . SENT ESOPs NNS were VBD very RB popular JJ in IN the DT United NP States NPS during IN the DT 1920 CD s PP when WRB share NN prices NNS were VBD rising VVG and CC Americans NPS widely RB owned VVN stock NN . SENT 77 CD The NP 1929 CD market NN crash NN and CC the DT subsequent JJ depression NN made VVD shares NNS less RBR popular JJ as IN compensation NN . SENT The DT growth NN in IN ESOPs NNS in IN the DT 1980 CD s PP is VBZ linked VVN to TO their PP$ significant JJ role NN in IN M NP As IN and CC leveraged JJ buyouts NNS LBOs NNS . SENT ESOPs NNS have VHP been VBN used VVN in IN these DT operations NNS in IN two CD main JJ ways NNS . SENT as IN a DT financing NN vehicle NN for IN the DT acquisition NN of IN companies NNS , , including VVG through IN LBOs NNS and CC as IN an DT anti JJ takeover NN defence NN . SENT An DT ESOP NP based VVN bid NN has VHZ important JJ tax NN benefits NNS , , helping VVG lower RBR the DT buyout NN cost NN and CC their PP$ voting NN power NN can MD bolster VV anti JJ takeover NN defences NNS . SENT In IN France NP , , BNP NP staff NN hold VVP 3 CD . SENT 2 CD per IN cent NN of IN capital NN and CC 4 CD . SENT 3 CD per IN cent NN of IN the DT company NN s PP voting VVG rights NNS , , while IN those DT of IN SocGen NP own JJ 8 CD . SENT 6 CD per IN cent NN and CC control VV 12 CD per IN cent NN of IN voting NN rights NNS . SENT Employees NNS in IN the DT two CD companies NNS supported VVD the DT positions NNS of IN their PP$ own JJ respective JJ managements NNS in IN the DT 1999 CD merger NN battle NN . SENT Even RB failed VVN mergers NNS can MD have VH immediate JJ effects NNS on IN pay NN and CC other JJ conditions NNS as IN evidenced VVN by IN exceptional JJ awards NNS to TO SocGen NP s PP staff NN after IN the DT company NN s PP successful JJ resistance NN to TO BNP NP s PP bid VVD . SENT Globalization NN is VBZ tending VVG to TO encourage VV a DT convergence NN in IN financial JJ services NNS salaries NNS , , at IN least JJS in IN investment NN banking NN . SENT End NN of IN year NN bonuses NNS , , often RB paid VVN in IN a DT combination NN of IN cash NN , , stock NN options NNS or CC stocks NNS , , have VHP become VVN generalized VVN . SENT The DT level NN of IN executive JJ compensation NN , , particularly RB fees NNS and CC commissions NNS related VVN to TO M NP A DT services NNS , , is VBZ itself PP usually RB a DT function NN of IN the DT number NN and CC value NN of IN deals NNS . SENT M NP As RB and CC working VVG time NN The DT link NN between IN financial JJ sector NN concentration NN and CC patterns NNS in IN regular JJ working VVG time NN is VBZ difficult JJ to TO identify VV because IN working VVG time NN agreements NNS depend VVP upon IN the DT national JJ context NN and CC are VBP not RB limited VVN to TO the DT sector NN under IN consideration NN . SENT Banks NNS adoption NN of IN the DT retailing NN model NN is VBZ encouraging VVG them PP to TO adjust VV their PP$ hours NNS to TO customer NN requirements NNS , , extending VVG opening VVG hours NNS on IN at IN least JJS one CD day NN a DT week NN and CC even RB opening VVG some DT branches NNS on IN traditionally RB closed VVN days NNS such JJ as IN Saturdays NNS a DT trend NN which WDT has VHZ aroused VVN strong JJ trade NN union NN reactions NNS in IN a DT number NN of IN countries NNS . SENT It PP goes VVZ without IN saying VVG that IN M NP As RB can MD provide VV an DT opportunity NN for IN management NN to TO opt VV for IN more JJR customer NN friendly JJ working VVG hours NNS . SENT However RB , , the DT rapid JJ development NN of IN Internet NN based VVN direct JJ banking NN and CC ATMs NNS often RB accelerating VVG and CC accelerated VVN by IN M NP As RB has VHZ the DT opposite JJ effect NN of IN reducing VVG the DT need NN for IN longer JJR opening NN hours NNS . SENT In IN Germany NP , , working VVG time NN was VBD at IN the DT centre NN of IN an DT industrial JJ dispute NN in IN the DT banking NN sector NN in IN 1999 CD , , when WRB bank NN employees NNS protested VVN against IN plans NNS to TO make VV Saturday NP a DT normal JJ working NN day NN . SENT Employers NNS agreed VVD to TO grant VV compensatory JJ free JJ time NN for IN work NN on IN Saturday NP for IN incumbents NNS but CC not RB for IN future JJ hires NNS . SENT A DT number NN of IN independent JJ studies NNS conclude VVP that IN the DT German JJ banking NN sector NN could MD lose VV at IN least JJS 100 CD , , 000 CD jobs NNS in IN the DT next JJ five CD years NNS if IN the DT current JJ race NN for IN critical JJ mass NN in IN the DT sector NN continues VVZ . SENT To TO balance VV this DT trend NN , , HBV NP the DT sectoral JJ trade NN union NN has VHZ been VBN pushing VVG for IN a DT 35 CD hour NN working VVG week NN in IN all DT banking NN establishments NNS . SENT In IN France NP , , negotiations NNS on IN a DT new JJ collective JJ agreement NN broke VVD down RB notably RB on IN the DT issue NN of IN working VVG time NN . SENT Agreements NNS have VHP been VBN negotiated VVN within IN each DT financial JJ group NN , , but CC employers NNS are VBP determined VVN to TO have VH the DT option NN to TO increase VV the DT use NN of IN part NN time NN workers NNS . SENT Between IN 1947 CD and CC 2000 CD , , weekly RB working VVG hours NNS in IN French JJ banks NNS consistently RB declined VVD from IN 45 CD to TO 35 CD hours NNS and CC in IN Belgium NP the DT trade NN union NN umbrella NN organization NN , , ACV NP CSC NP and CC the DT trade NN union NN federation NN , , Landelijke NP Bedienden NP Centrale NP Nationaal NP Verbond NP voor NP Kaderpersoneel NP LBC NP NVK NP , , report NN that IN bank NN workers NNS have VHP been VBN able JJ to TO obtain VV a DT 35 CD hour NN week NN . SENT In IN Australia NP , , the DT FSU NP reports NNS that IN two CD years NNS after IN a DT restructuring NN and CC downsizing VVG related JJ continuous JJ improvement NN programme NN in IN the DT Commonwealth NP Bank NP , , 84 CD . SENT 8 CD per IN cent NN of IN surveyed VVN managers NNS reported VVD an DT increase NN in IN their PP$ overall JJ workload NN , , while IN 77 CD per IN cent NN reported VVD an DT increase NN in IN the DT number NN of IN hours NNS they PP worked VVD . SENT According VVG to TO the DT same JJ trade NN union NN , , unpublished JJ ABS NP figures NNS also RB show VVP more JJR than IN a DT third JJ of IN finance NN workers NNS usually RB work VVP overtime RB , , without IN financial JJ compensation NN for IN more JJR than IN a DT third JJ of IN them PP . SENT Close JJ to TO a DT million CD hours NNS of IN overtime NN are VBP worked VVN in IN the DT sector NN each DT week NN equal JJ to TO 25 CD , , 707 CD full JJ time NN jobs NNS at IN 38 CD hours NNS week NN or CC 24 CD , , 421 CD at IN 40 CD hours NNS week NN , , reflecting VVG the DT fact NN that IN almost RB 40 CD per IN cent NN of IN full JJ time NN workers NNS put VVN in IN more JJR than IN 45 CD hours NNS per IN week NN or CC seven CD hours NNS more RBR than IN the DT normal JJ weekly JJ working NN time NN . SENT 69 CD per IN cent NN of IN these DT workers NNS receive VVP no RB pay VV for IN the DT overtime NN . SENT The DT union NN draws VVZ attention NN to TO the DT coincidence NN of IN such JJ unprecedented JJ levels NNS of IN overtime NN and CC the DT high JJ number NN of IN mergers NNS , , restructuring NN and CC downsizing NN that WDT have VHP resulted VVN in IN the DT loss NN of IN up RB to TO 36 CD , , 000 CD full JJ time NN jobs NNS close JJ to TO a DT 30 CD per IN cent NN drop NN in IN employment NN in IN consolidating VVG organizations NNS over IN a DT period NN of IN record NN profitability NN . SENT It PP highlights VVZ the DT incredible JJ pressure NN on IN workers NNS to TO complete VV tasks NNS , , achieve VV targets NNS and CC sell VV products NNS to TO justify VV their PP$ continued JJ employment NN . SENT Across IN the DT European NP Union NP , , average NN collectively RB agreed VVD weekly JJ working JJ time NN stood VVD at IN 38 CD . SENT 6 CD hours NNS in IN 1999 CD figures NNS that WDT had VHD changed VVN little RB from IN the DT previous JJ year NN . SENT However RB , , usual JJ weekly JJ hours NNS are VBP on IN average JJ two CD hours NNS longer RBR than IN the DT collectively RB agreed VVN norm NN . SENT Collective JJ bargaining NN plays VVZ a DT key NN though IN widely RB varying VVG role NN in IN determining VVG the DT duration NN of IN working VVG time NN in IN all DT Member NP States NPS . SENT bargaining NN levels NNS and CC bargaining NN coverage NN vary VVP considerably RB . SENT Significant JJ differences NNS exist VVP among IN sectors NNS and CC between IN groups NNS of IN workers NNS . SENT In IN banking NN , , the DT longest JJS agreed VVN weekly JJ hours NNS 40 CD were VBD in IN Luxembourg NP and CC the DT lowest JJS in IN Portugal NP and CC the DT United NP Kingdom NP 35 CD . SENT Working VVG hours NNS in IN Belgian JJ , , Dutch JJ , , Finnish JJ , , Greek NP , , Portuguese NP , , Spanish NP , , Swedish NP and CC United NP Kingdom NP banking NN were VBD notably RB lower JJR than IN the DT national JJ average NN , , while IN those DT in IN Germany NP were VBD higher JJR . SENT Overall RB , , the DT average NN agreed VVD working VVG week NN in IN banking NN , , at IN 37 CD . SENT 6 CD hours NNS , , was VBD lower JJR than IN the DT whole JJ economy NN average NN of IN 38 CD . SENT 6 CD perhaps RB reflecting VVG the DT predominance NN of IN white JJ collar NN workers NNS who WP have VHP traditionally RB had VHN shorter JJR hours NNS than IN blue JJ collar NN workers NNS in IN many JJ countries NNS . SENT EUROSTAT NP figures NNS on IN actual JJ hours NNS worked VVN per IN week NN by IN full JJ time NN employees NNS , , based VVN on IN the DT 1998 CD Labour NN Force NP Survey NP , , are VBP , , not RB surprisingly RB , , generally RB higher JJR than IN agreed VVN normal JJ weekly JJ hours NNS across IN the DT EU NP . SENT The DT excess NN over IN normal JJ agreed VVD working VVG time NN principally RB reflects VVZ overtime RB . SENT In IN one CD group NN of IN countries NNS including VVG most JJS of IN those DT with IN high NN collectively RB agreed VVD normal JJ hours NNS the DT usual JJ working NN week NN is VBZ quite RB close JJ to TO the DT agreed VVN normal JJ week NN . SENT the DT two CD figures NNS are VBP within IN an DT hour NN of IN each DT other JJ in IN Belgium NP , , Finland NP , , France NP , , Greece NP , , Italy NP , , Luxembourg NP and CC Sweden NP . SENT In IN Belgium NP and CC Luxembourg NP , , usual JJ hours NNS are VBP actually RB below RB agreed VVN normal JJ hours NNS . SENT At IN the DT other JJ extreme NN are VBP countries NNS where WRB usual JJ hours NNS exceed VVP normal JJ agreed VVN hours NNS by IN two CD hours NNS or CC more JJR Germany NP , , the DT Netherlands NP , , Spain NP and CC the DT United NP Kingdom NP though IN the DT gap NN would MD be VB narrower JJR in IN Germany NP if IN the DT figure NN included VVD East NP Germany NP . SENT The DT United NP Kingdom NP has VHZ the DT largest JJS gap NN of IN 5 CD . SENT 6 CD hours NNS between IN collectively RB agreed VVN and CC actual JJ hours NNS perhaps RB reflecting VVG that DT country NN s PP long JJ hours NNS and CC overtime NN culture NN and CC the DT low JJ coverage NN of IN collective JJ bargaining NN . SENT The DT range NN between IN the DT highest JJS and CC lowest JJS actual JJ weekly JJ hours NNS 44 CD in IN the DT United NP Kingdom NP and CC 38 CD . SENT 5 CD in IN Italy NP is VBZ , , at IN 5 CD . SENT 5 CD hours NNS , , considerably RB wider JJR than IN for IN regular JJ agreed VVN hours NNS three CD . SENT M NP As RB as IN factors NNS of IN stress NN and CC demotivation NN A DT number NN of IN studies NNS highlight VV the DT close JJ association NN between IN restructuring NN and CC mass NN lay VVD offs NNS and CC a DT survivors NNS syndrome NN , , resulting VVG from IN the DT destruction NN of IN psychological JJ contracts NNS . SENT Lay VV offs NNS and CC other JJ restructuring NN processes VVZ introduce VV an DT element NN of IN unpredictability NN in IN deep JJ seated VVN employee NN assumptions NNS , , creating VVG feelings NNS of IN loss NN of IN control NN , , betrayal NN and CC unfairness NN . SENT As IN staff NN suppress VV their PP$ anger NN and CC mistrust NN , , their PP$ negative JJ feelings NNS trigger VVP reactions NNS ranging VVG from IN generalized VVN stress NN to TO demoralization NN , , depression NN and CC burnout NNS . SENT these DT , , in IN turn NN , , lead VVP to TO decreased VVN productivity NN and CC stunt NN creativity NN . SENT Managers NNS suffering VVG from IN their PP$ own JJ strain NN of IN survivors NNS syndrome NN often RB compound VV the DT problem NN by IN failing VVG to TO recognize VV and CC respond VV to TO it PP in IN productive JJ ways NNS . SENT Survivors NNS are VBP not RB only RB expected VVN to TO be VB grateful JJ for IN being VBG retained VVN , , but CC to TO put VV feelings NNS aside RP and CC work VV harder RBR . SENT Not RB surprisingly RB , , poor JJ morale NN due JJ to TO lay VV offs NNS of IN friends NNS and CC colleagues NNS and CC increased JJ job NN insecurity NN of IN retained JJ staff NN is VBZ by IN far RB the DT worst JJS human JJ resource NN problem NN in IN today NN s PP business NN climate NN . SENT Given VVN that IN successful JJ management NN of IN the DT restructuring NN process NN is VBZ vital JJ for IN achieving VVG organizational JJ objectives NNS , , managers NNS need VVP to TO be VB aware JJ that IN downsizing NN is VBZ more JJR than IN a DT reduction NN in IN head NN count NN and CC work NN reorganization NN . SENT Terminations NNS destroy VVP the DT firm NN s PP social JJ fabric NN as IN structures NNS are VBP altered VVN , , relationships NNS disrupted VVD and CC work NN patterns NNS and CC communication NN flows NNS modified VVN , , making VVG it PP more RBR difficult JJ for IN retained JJ staff NN to TO do VV their PP$ work NN . SENT These DT structural JJ problems NNS may MD inhibit VV performance NN so IN that DT staff NN need MD help VV to TO cultivate VV new JJ ties NNS , , although IN insufficient JJ attention NN is VBZ usually RB given VVN to TO the DT intricate JJ relationship NN between IN the DT organization NN s PP formal JJ and CC informal JJ structures NNS . SENT In IN addition NN , , survivors NNS who WP are VBP already RB subject JJ to TO survivors NNS syndrome NN find VVP they PP have VHP to TO work VV harder RBR to TO cover VV staffing NN shortfalls NNS , , with IN the DT consequence NN that IN increased JJ workloads NNS feed VVP the DT stress NN related VVN to TO job NN insecurity NN , , undermining VVG the DT very JJ efficiency NN goals NNS that IN motivated VVN the DT merger NN or CC acquisition NN . SENT Job NN insecurity NN may MD make VV employees NNS feel VV pressured VVN into IN agreeing VVG to TO put VV extra JJ effort NN into IN their PP$ jobs NNS to TO demonstrate VV organizational JJ loyalty NN . SENT but CC such JJ working VVG conditions NNS are VBP neither RB sustainable JJ nor CC conducive JJ to TO the DT achievement NN of IN corporate JJ objectives NNS . SENT It PP has VHZ been VBN estimated VVN that IN stress NN related JJ problems NNS costs VVZ the DT United NP States NPS economy NN approximately RB 200 CD billion CD a DT year NN , , or CC the DT equivalent NN of IN the DT revenues NNS of IN the DT 500 CD most RBS profitable JJ firms NNS . SENT Similar JJ estimates NNS for IN the DT United NP Kingdom NP show NN stress NN related VVN illnesses NNS absorbing VVG almost RB 10 CD per IN cent NN of IN GDP NP . SENT Financial JJ sector NN restructuring NN around IN the DT world NN has VHZ led VVN to TO a DT high JJ rate NN of IN call NN centre NN growth NN . SENT Research NN by IN Deloitte NP Touche NP has VHZ found VVN , , for IN instance NN , , that WDT Australia NP has VHZ 1 CD , , 400 CD call NN centres NNS and CC help VV desks NNS employing VVG 50 CD , , 000 CD people NNS and CC annual JJ sales NNS of IN 2 CD billion CD . SENT Staff NN turnover NN averages VVZ 18 CD per IN cent NN a DT year NN mainly RB due JJ to TO stress VV , , as RB confirmed VVN by IN the DT fact NN that IN 80 CD per IN cent NN of IN workers NNS are VBP requesting VVG stress NN management NN training NN assistance NN . SENT The DT annual JJ cost NN to TO the DT industry NN from IN the DT high JJ turnover NN has VHZ been VBN estimated VVN at IN around IN 100 CD million CD . SENT M NP As RB generate VV high JJ levels NNS of IN staff NN anxiety NN and CC stress NN as IN their PP$ working JJ world NN is VBZ turned VVN upside RB down RB , , their PP$ jobs NNS come VVP under IN threat NN and CC their PP$ career NN prospects NNS and CC professional JJ competence NN are VBP called VVN into IN question NN . SENT Collective JJ defensive JJ mechanisms NNS , , especially RB in IN hostile JJ takeovers NNS involving VVG previously RB keen JJ competitors NNS , , may MD lead VV to TO a DT victor NN vanquished VVD syndrome NN inducing VVG behaviour NN inimical JJ to TO the DT smooth JJ implementation NN of IN changes NNS for IN successful JJ integration NN . SENT Employees NNS from IN each DT company NN are VBP aware JJ that IN there EX are VBP many JJ duplicated VVN positions NNS to TO be VB eliminated VVN and CC the DT struggle NN to TO survive VV will MD be VB fierce JJ . SENT Trade NN unions NNS may MD themselves PP be VB at IN loggerheads NNS as IN the DT merger NN may MD involve VV companies NNS recognizing VVG different JJ negotiating VVG partners NNS . SENT Not RB surprisingly RB , , it PP is VBZ much RB easier JJR for IN managers NNS to TO convince VV shareholders NNS about IN the DT merits NNS of IN proposed VVN mergers NNS than IN it PP is VBZ to TO persuade VV their PP$ own JJ staff NN . SENT M NP As IN and CC job NN security NN A DT bank NN or CC insurance NN company NN used VVN to TO be VB a DT place NN where WRB a DT worker NN had VHD a DT job NN for IN life NN . SENT Not RB any DT more RBR . SENT As IN a DT 1995 CD survey NN on IN changes NNS at IN work NN in IN Australia NP found VVD , , this DT is VBZ no DT longer RBR the DT case NN . SENT establishments NNS using VVG redundancy NN as IN a DT means NN of IN reducing VVG their PP$ workforce NN increased VVN from IN 49 CD per IN cent NN in IN 1990 CD to TO 74 CD per IN cent NN in IN 1995 CD . SENT Companies NNS relied VVD less JJR on IN natural JJ wastage NN and CC attrition NN to TO achieve VV desirable JJ workforce NN levels NNS . SENT Employment NN statistics NNS around IN the DT world NN show VVP a DT declining VVG trend NN in IN financial JJ services NNS . SENT This DT began VVD in IN the DT early JJ 1990 CD s PP in IN some DT countries NNS and CC extended VVD to TO almost RB all DT countries NNS by IN the DT end NN of IN the DT decade NN . SENT Constant JJ restructuring NN and CC redundancies NNS have VHP led VVN to TO a DT culture NN of IN insecurity NN , , which WDT research NN shows NNS is VBZ a DT key JJ factor NN in IN negative JJ worker NN reactions NNS . SENT According VVG to TO Tienari NP , , 78 CD due JJ to TO elimination NN of IN overlaps VVZ , , merger NN procedures NNS unfold VV as IN personal JJ and CC collective JJ survival NN games NNS for IN the DT individuals NNS involved VVD . SENT Merging VVG may MD present VV a DT unique JJ chance NN to TO get VV rid JJ of IN individuals NNS at IN all DT managerial JJ levels NNS . SENT The DT re NN manning VVG of IN what WP is VBZ , , in IN effect NN , , a DT new JJ organization NN , , may MD also RB take VV place NN concurrently RB with IN a DT redefinition NN of IN jobs NNS and CC positions NNS as RB well RB as IN changes NNS in IN the DT hierarchical JJ ranking NN of IN these DT positions NNS . SENT Not RB surprisingly RB , , empirical JJ evidence NN shows NNS that IN workers NNS everywhere RB are VBP feeling VVG increasing VVG insecurity NN in IN their PP$ employment NN . SENT Companies NNS are VBP restructuring VVG and CC downsizing VVG more RBR often RB , , increasingly RB replacing VVG full JJ time NN jobs NNS with IN part NN time NN , , casual JJ or CC temporary JJ jobs NNS and CC outsourcing NN . SENT Call NN centres NNS are VBP proliferating VVG , , replacing VVG traditional JJ finance NN jobs NNS . SENT The DT same JJ Australian JJ survey NN refers VVZ to TO the DT following VVG staff NN attitudes NNS in IN downsized VVD firms NNS . SENT 72 CD per IN cent NN reported VVD diminished JJ job NN security NN . SENT 53 CD per IN cent NN decreased VVD organizational JJ commitment NN . SENT 50 CD per IN cent NN a DT drop NN in IN motivation NN . SENT and CC 65 CD per IN cent NN reduced JJ staff NN morale NN . SENT Australia NP s PP Bureau NP of IN Statistics NPS figures NNS for IN 1999 CD show NN that IN 685 CD , , 400 CD people NNS aged VVN 18 CD to TO 64 CD years NNS had VHD been VBN retrenched VVN on IN one CD or CC more JJR occasions NNS during IN the DT three CD years NNS leading VVG up RB to TO 30 CD June NP 1997 CD , , with IN only RB 55 CD per IN cent NN employed VVN again RB as IN at IN 30 CD July NP 1997 CD . SENT Many JJ of IN those DT not RB able JJ to TO find VV new JJ full JJ time NN employment NN had VHD had VHN to TO change VV to TO part NN time NN work NN or CC changed VVD their PP$ status NN from IN permanent JJ to TO casual JJ worker NN . SENT In IN the DT United NP States NPS , , Challenger NP , , Gray NP Christmas NP , , a DT Chicago NP based VVN personnel NNS consulting VVG firm NN that IN monitors NNS announced VVD lay VV off RP plans NNS , , reports NNS that IN United NP States NP companies NNS declared VVD 675 CD , , 000 CD lay VVD offs NNS in IN 1999 CD and CC 678 CD , , 000 CD the DT year NN before RB , , up RB from IN 111 CD , , 285 CD in IN 1989 CD . SENT Not RB surprisingly RB , , 1998 CD represents VVZ a DT high JJ point NN in IN corporate JJ mergers NNS and CC integration NN related JJ restructuring NN . SENT Meanwhile RB , , the DT Bureau NP of IN Labour NN Statistics NNS , , whose WP$ figures NNS include VVP lay VV offs NNS that WDT are VBP not RB publicly RB announced VVN , , reported VVD a DT preliminary JJ 1 CD . SENT 57 CD million CD lay VVD offs NNS in IN 1999 CD , , though IN it PP expected VVD to TO revise VV this DT figure NN downwards RB . SENT Even RB these DT statistics NNS understate VVP the DT real JJ dimensions NNS as IN they PP include VVP only RB lay VV offs NNS of IN 50 CD or CC more JJR employees NNS at IN a DT time NN . SENT Employment NN statistics NNS elsewhere RB reflect VVP a DT consistent JJ downward JJ trend NN in IN finance NN sector NN employment NN . SENT United NP Kingdom NP financial JJ services NNS employment NN , , for IN instance NN , , continued VVD to TO rise VV up RP to TO 1990 CD when WRB it PP peaked VVD at IN 1 CD , , 055 CD , , 000 CD , , slumping VVG to TO 994 CD , , 000 CD by IN 1997 CD . SENT In IN the DT United NP Kingdom NP , , Manufacturing NP Science NP Finance NP MSF NP estimates VVZ M NP A DT related JJ job NN losses NNS at IN 15 CD , , 000 CD between IN 1996 CD and CC 1999 CD . SENT During IN this DT period NN , , insurance NN job NN losses NNS tended VVD to TO be VB in IN back RB office NN routine JJ processing NN functions NNS and CC home NN service NN , , involving VVG agents NNS door NN to TO door NN collection NN of IN insurance NN premiums NNS . SENT Slight JJ offsetting JJ increases NNS were VBD recorded VVN in IN financial JJ advisory JJ services NNS and CC customer NN service NN fields NNS , , as RB well RB as IN call NN centres NNS . SENT None NN of IN these DT figures NNS provide VVP insight NN into IN trends NNS in IN employment NN quality NN , , so RB that IN the DT aggregate JJ nature NN of IN employment NN statistics NNS might MD veil VV increased JJ replacement NN of IN full JJ time NN jobs NNS with IN atypical JJ work NN . SENT Call NN centre NN jobs NNS growth NN , , coinciding VVG with IN losses NNS elsewhere RB , , tends VVZ to TO support VV this DT intuitive JJ conclusion NN . SENT Given VVN that IN levels NNS of IN job NN reductions NNS are VBP related VVN to TO merger NN induced VVD downsizing NN , , job NN security NN has VHZ become VVN a DT key JJ issue NN in IN many JJ countries NNS where WRB M NP As RB are VBP common JJ . SENT 6 CD . SENT Social JJ dialogue NN in IN the DT context NN of IN M NP As IN Change NP is VBZ always RB a DT source NN of IN great JJ uncertainty NN , , tension NN and CC potential JJ conflict NN . SENT and CC the DT changes NNS being VBG brought VVN about RB by IN today NN s PP widespread JJ economic JJ liberalization NN and CC globalization NN are VBP far RB reaching VVG , , In IN principle NN , , social JJ dialogue NN is VBZ increasingly RB accepted VVN as IN the DT machinery NN best RBS suited VVN to TO manage VV the DT effects NNS of IN this DT change NN and CC to TO promote VV balanced JJ social JJ and CC economic JJ development NN by IN seeking VVG a DT greater JJR understanding NN of IN the DT conflicting JJ interests NNS of IN the DT parties NNS . SENT As IN stated VVN in IN the DT Director NP General NP s PP Report NP , , 79 CD Decent NP work NN . SENT Social JJ dialogue NN is VBZ a DT powerful JJ tool NN that WDT has VHZ helped VVN solve VV difficult JJ problems NNS and CC foster JJ social JJ cohesion NN . SENT . SENT . SENT Developing VVG a DT reflex JJ for IN consultation NN and CC negotiation NN takes VVZ time NN and CC commitment NN . SENT It PP also RB needs VVZ social JJ partners NNS that WDT have VHP the DT capacity NN and CC will MD to TO engage VV in IN the DT process NN responsibly RB and CC the DT strength NN and CC flexibility NN to TO adjust VV to TO contemporary JJ circumstances NNS and CC exploit VV new JJ opportunities NNS . SENT In IN addition NN to TO the DT capacity NN of IN social JJ partners NNS , , disparities NNS between IN perception NN and CC facts NNS , , law NN and CC practice NN and CC ideologies NNS and CC realities NNS all RB determine VVP the DT effectiveness NN of IN social JJ dialogue NN . SENT Problems NNS may MD also RB arise VV when WRB social JJ dialogue NN is VBZ irregular JJ or CC brought VVN into IN play NN only RB after IN decisions NNS have VHP been VBN taken VVN . SENT In IN view NN of IN their PP$ increasing VVG frequency NN and CC the DT extent NN of IN the DT upheaval NN they PP cause VVP , , M NP As RB are VBP one CD of IN the DT most RBS important JJ issues NNS of IN today NN s PP labour VV markets NNS . SENT There EX is VBZ therefore RB a DT growing VVG recognition NN for IN negotiated VVN framework NN agreements NNS to TO provide VV workers NNS and CC their PP$ representatives NNS with IN the DT opportunity NN to TO influence VV in IN a DT meaningful JJ manner NN the DT strategic JJ decision NN making VVG processes NNS relating VVG to TO M NP As IN . SENT Prerequisites NNS for IN effective JJ social JJ dialogue NN The DT viability NN and CC effectiveness NN of IN social JJ dialogue NN is VBZ contingent JJ upon IN a DT social JJ , , economic JJ and CC political JJ climate NN conducive JJ to TO this DT process NN and CC upon IN at IN least JJS three CD independent JJ and CC strong JJ parties NNS willing JJ to TO cooperate VV . SENT As IN the DT law NN maker NN and CC watchdog NN , , the DT State NP is VBZ expected VVN to TO take VV an DT active JJ role NN , , along RB with IN employers NNS and CC workers NNS , , in IN resolving VVG problems NNS of IN a DT social JJ and CC economic JJ nature NN and CC in IN encouraging VVG the DT creation NN of IN an DT environment NN and CC culture NN of IN dialogue NN for IN the DT prevention NN and CC peaceful JJ settlement NN of IN disputes NNS . SENT The DT role NN of IN the DT State NN in IN promoting VVG dialogue NN is VBZ provided VVN in IN the DT ILO NP Consultation NN Industrial NP and CC National NP Levels NP , , Recommendation NN , , 1960 CD No DT . SENT 113 CD and CC the DT observations NNS regarding VVG consultation NN and CC cooperation NN between IN public JJ authorities NNS and CC employers NNS and CC workers NNS organizations NNS at IN the DT industrial JJ and CC national JJ levels NNS , , also RB adopted VVN by IN the DT 44 CD th NN Session NP of IN the DT International NP Labour NN Conference NN in IN the DT same JJ year NN . SENT These DT instruments NNS stipulate VV that DT social JJ dialogue NN should MD take VV place NN in IN a DT spirit NN of IN good JJ faith NN , , confidence NN and CC mutual JJ respect NN . SENT Institutional JJ arrangements NNS for IN social JJ dialogue NN Social NP dialogue NN mostly RB consists VVZ of IN a DT series NN of IN activities NNS ranging VVG from IN a DT mere JJ exchange NN of IN information NN and CC preliminary JJ consultations NNS to TO negotiations NNS and CC shared VVN decisions NNS which WDT may MD result VV in IN binding VVG collective JJ agreements NNS , , pacts NNS , , codes NNS of IN conduct NN or CC charters NNS . SENT It PP may MD take VV place NN within IN formal JJ machineries NNS or CC through IN spontaneously RB formed VVN informal JJ bodies NNS representing VVG the DT different JJ parties NNS . SENT In IN some DT cases NNS it PP may MD take VV place NN in IN the DT form NN of IN workers NNS participation NN in IN the DT decision NN making VVG process NN within IN an DT undertaking NN to TO deal VV with IN areas NNS not RB normally RB covered VVN under IN collective JJ bargaining NN . SENT Social JJ dialogue NN operates VVZ through IN works NNS councils NNS and CC workers NNS representatives NNS in IN management NN at IN the DT plant NN or CC enterprise NN level NN and CC through IN various JJ national JJ level NN tripartite JJ consultation NN bodies NNS . SENT Levels NNS and CC scope NN of IN social JJ dialogue NN The DT issues NNS covered VVN under IN social JJ dialogue NN vary VVP according VVG to TO the DT level NN at IN which WDT they PP are VBP discussed VVN . SENT Matters NNS related VVN to TO international JJ law NN , , basic JJ human JJ rights NNS and CC trade NN may MD be VB examined VVN at IN the DT international JJ level NN . SENT while IN others NNS such JJ as IN economic JJ growth NN and CC productivity NN , , competitiveness NN , , employment NN , , structural JJ adjustment NN , , labour NN market NN flexibility NN , , social JJ policy NN , , training NN , , social JJ security NN and CC welfare NN , , wages NNS and CC remuneration NN , , basic JJ rights NNS at IN work NN , , gender NN and CC working VVG conditions NNS are VBP generally RB discussed VVN at IN the DT national JJ level NN . SENT Enterprise NN or CC industry NN level NN subjects NNS usually RB include VVP basic JJ questions NNS of IN wages NNS and CC working VVG conditions NNS and CC other JJ issues NNS specific JJ to TO the DT particular JJ industry NN or CC enterprise NN normally RB covered VVN under IN collective JJ bargaining NN . SENT Recent JJ industry NN and CC enterprise NN level NN consultations NNS have VHP focused VVN on IN competitiveness NN , , productivity NN and CC employment NN protection NN . SENT A DT whole JJ host NN of IN other JJ matters NNS specific JJ to TO a DT region NN or CC occupation NN may MD be VB dealt VVN with IN at IN any DT level NN . SENT Regional JJ integration NN , , seen VVN as IN conducive JJ to TO economies NNS of IN scale NN , , has VHZ been VBN an DT issue NN in IN the DT formulation NN of IN social JJ and CC economic JJ development NN policies NNS since IN the DT 1960 CD s PP . SENT In IN recent JJ years NNS the DT debate NN has VHZ expanded VVN to TO globalization NN and CC its PP$ consequences NNS and CC driving VVG factors NNS including VVG economic JJ liberalization NN and CC deregulation NN . SENT Supporters NNS of IN global JJ integration NN maintain VVP that IN it PP offers VVZ the DT advantages NNS of IN even RB greater JJR economies NNS of IN scale NN and CC the DT possibilities NNS of IN high JJ levels NNS of IN specialization NN , , while IN critics NNS fear VVP it PP erodes VVZ States NP policy NN making VVG prerogatives NNS . SENT Globalization NN is VBZ already RB affecting VVG the DT social JJ and CC economic JJ policies NNS of IN nations NNS , , increasing VVG the DT need NN for IN dialogue NN at IN all DT levels NNS . SENT Institutional JJ machinery NN for IN social JJ dialogue NN , , functioning VVG with IN varying VVG degrees NNS of IN success NN , , have VHP been VBN established VVN in IN most JJS regions NNS . SENT The DT 15 CD member NN European JJ Economic NP Community NP , , the DT oldest JJS and CC perhaps RB the DT most RBS advanced JJ instance NN of IN regional JJ integration NN , , has VHZ established VVN an DT elaborate JJ framework NN for IN social JJ dialogue NN . SENT A DT Social NP and CC Economic NP Committee NP on IN Social NP Dialogue NN was VBD set VVN up RP in IN 1986 CD to TO enable VV the DT social JJ partners NNS within IN the DT European NP Union NP to TO lay VV the DT groundwork NN for IN future JJ social JJ policy NN through IN council NN directives NNS . SENT In IN 1994 CD , , a DT directive NN was VBD adopted VVN to TO introduce VV European JJ works NNS councils NNS in IN enterprises NNS with IN at IN least JJS 1 CD , , 000 CD employees NNS in IN Europe NP or CC 300 CD employees NNS in IN any DT two CD Member NP States NPS . SENT 80 CD It PP emphasizes VVZ workers NNS rights NNS to TO information NN and CC consultation NN , , as RB well RB as IN the DT need NN for IN an DT exchange NN of IN views NNS and CC dialogue NN between IN the DT social JJ partners NNS . SENT The DT recent JJ revision NN of IN Community NP law NN also RB creates VVZ the DT possibility NN of IN collective JJ agreements NNS at IN Community NP level NN in IN several JJ areas NNS such JJ as IN paternity NN leave NN and CC part NN time NN work NN . SENT The DT North NP American NP Free NP Trade NP Agreement NP NAFTA NP has VHZ a DT complementary JJ agreement NN on IN labour NN cooperation NN committing VVG the DT signatories NNS to TO high JJ labour NN standards NNS , , while IN the DT Common JJ Market NN of IN the DT Southern NP Latin NP American NP countries NNS MERCOSUR NP has VHZ a DT tripartite JJ Social NP and CC Labour VV Commission NP to TO pursue VV the DT implementation NN of IN social JJ and CC labour NN rights NNS in IN the DT Common JJ Market NN . SENT Similarly RB , , the DT 15 CD member NN Caribbean NP Community NP and CC Common NP Market NP CARICOM NP has VHZ adopted VVN a DT Declaration NP of IN Labour NN and CC Industrial NP Relations NPS Principles NNS taking VVG into IN account NN international JJ labour NN standards NNS . SENT This DT provides VVZ for IN cooperation NN between IN social JJ partners NNS and CC arrangements NNS for IN consultation NN , , cooperation NN and CC negotiations NNS between IN public JJ authorities NNS and CC the DT most JJS representative NN employers NNS and CC workers NNS organizations NNS at IN the DT local JJ , , national JJ or CC regional JJ levels NNS , , as RB appropriate JJ . SENT Comparable JJ social JJ dialogue NN mechanisms NNS have VHP been VBN established VVN in IN Africa NP at IN both DT regional JJ and CC subregional JJ levels NNS . SENT Tripartite JJ consultations NNS and CC agreements NNS on IN the DT broad JJ lines NNS of IN government NN policies NNS , , as RB well RB as IN on IN socio JJS economic JJ and CC labour NN issues NNS , , are VBP widespread JJ at IN the DT national JJ level NN . SENT Many JJ countries NNS have VHP started VVN tripartite JJ institutions NNS aimed VVN at IN revising VVG labour NN laws NNS , , establishing VVG procedures NNS for IN settlement NN of IN labour NN disputes NNS and CC enhancing VVG national JJ social JJ and CC economic JJ development NN . SENT The DT ILO NP Declaration NP on IN Fundamental JJ Principles NNS and CC Rights NNS at IN Work NP and CC its PP$ Follow NN up RB has VHZ revitalized VVN social JJ dialogue NN by IN committing VVG member NN States NNS to TO apply VV the DT principles NNS contained VVN in IN core JJ international JJ labour NN standards NNS , , which WDT are VBP essential JJ prerequisites NNS for IN effective JJ social JJ dialogue NN . SENT Social JJ dialogue NN modalities NNS are VBP usually RB negotiated VVN and CC agreed VVN upon RP in IN advance NN . SENT A DT number NN of IN countries NNS , , especially RB in IN Scandinavia NP , , have VHP concluded VVN basic JJ agreements NNS setting VVG out RP rules NNS and CC procedures NNS for IN labour NN relations NNS . SENT In IN addition NN , , the DT agreements NNS establish VV a DT structure NN for IN labour NN relations NNS including VVG workers NNS representation NN through IN shop NN stewards NNS or CC councils NNS . SENT In IN some DT other JJ countries NNS national JJ tripartite JJ consultations NNS take VVP place NN within IN bodies NNS specifically RB established VVN for IN that DT purpose NN either CC through IN legislation NN e NN . SENT g NN . SENT the DT economic JJ and CC social JJ councils NNS in IN France NP and CC the DT Netherlands NPS or CC by IN agreement NN Sweden NP within IN the DT framework NN of IN ad FW hoc FW arrangements NNS . SENT In IN other JJ regions NNS , , some DT countries NNS have VHP adopted VVN tripartism NN as IN a DT means NN of IN securing VVG social JJ partners NNS focus VVP on IN institutional JJ cooperation NN and CC long JJ term NN strategy NN related VVN to TO employment NN , , productivity NN , , wages NNS and CC vocational JJ training NN . SENT Generally RB , , the DT State NP takes VVZ the DT lead NN in IN initiating VVG dialogue NN and CC encouraging JJ accommodation NN of IN interests NNS between IN social JJ partners NNS in IN the DT conception NN , , formulation NN and CC execution NN of IN national JJ social JJ and CC economic JJ policies NNS . SENT Social JJ dialogue NN at IN the DT sectoral JJ and CC enterprise NN levels NNS is VBZ largely RB conducted VVN through IN collective JJ bargaining NN , , usually RB understood VVN as IN being VBG a DT bipartite JJ voluntarist JJ process NN by IN means NNS of IN which WDT the DT employers NNS and CC the DT trade NN unions NNS negotiate VVP employment NN conditions NNS and CC define VV their PP$ relations NNS within IN a DT general JJ framework NN established VVN by IN the DT State NN playing VVG an DT invisible JJ but CC crucial JJ role NN . SENT There EX is VBZ no DT ideal JJ bargaining NN level NN as IN each DT has VHZ its PP$ strengths NNS and CC weaknesses NNS . SENT the DT enterprise NN level NN is VBZ , , for IN instance NN , , the DT most RBS flexible JJ but CC it PP frequently RB leads VVZ to TO substantial JJ disparities NNS in IN wages NNS and CC working VVG conditions NNS among IN enterprises NNS , , while IN sectoral JJ or CC branch NN level NN bargaining NN may MD create VV uniformity NN in IN wages NNS and CC conditions NNS that WDT do VVP not RB easily RB lend VV themselves PP to TO specific JJ conditions NNS in IN different JJ enterprises NNS . SENT In IN general JJ , , enterprise NN level NN bargaining NN has VHZ been VBN the DT rule NN in IN North NP America NP and CC Japan NP , , while IN industrial JJ or CC branch NN level NN bargaining NN has VHZ traditionally RB been VBN dominant JJ in IN western JJ Europe NP although IN it PP has VHZ been VBN losing VVG ground NN to TO enterprise NN level NN bargaining NN over IN the DT last JJ ten CD years NNS . SENT One CD of IN the DT reasons NNS for IN this DT is VBZ that DT enterprise NN level NN bargaining NN tends VVZ to TO be VB considered VVN better RBR at IN enhancing VVG flexibility NN to TO address VV problems NNS resulting VVG from IN today NN s PP fierce JJ competition NN . SENT A DT study NN on IN dual JJ commitment NN in IN an DT Australian JJ bank NN 81 CD concludes VVZ that IN where WRB management NN accepts VVZ the DT role NN of IN the DT union NN and CC is VBZ willing JJ to TO promote VV the DT development NN of IN trustful JJ and CC cooperative JJ industrial JJ relations NNS , , it PP is VBZ rewarded VVN with IN improved JJ organizational JJ performance NN in IN terms NNS of IN higher JJR productivity NN and CC lower JJR absenteeism NN . SENT The DT explanation NN for IN this DT appears VVZ to TO lie VV in IN the DT collective JJ voice NN provided VVN by IN unions NNS . SENT It PP is VBZ widely RB understood VVN that IN effective JJ dialogue NN can MD help VV reshape VV management NN practices NNS and CC organizational JJ rules NNS thereby RB enhancing VVG productive JJ performance NN . SENT This DT makes VVZ the DT processes NNS of IN conflict NN resolution NN fairer JJR and CC more RBR transparent JJ since IN employee NN concerns NNS and CC preferences NNS are VBP conveyed VVN to TO management NN in IN a DT more RBR orderly JJ and CC effective JJ fashion NN . SENT Specific JJ areas NNS of IN discontent NN and CC concern NN can MD be VB raised VVN and CC more RBR effectively RB resolved VVN , , improving VVG the DT match NN between IN employee NN interests NNS and CC employer NN policies NNS . SENT Overcoming VVG M NP A DT challenges NNS through IN social JJ dialogue NN A DT 1999 CD study NN by IN Andersen NP Consulting NP concluded VVD that IN although IN the DT speed NN and CC degree NN of IN integration NN are VBP the DT two CD questions NNS which WDT contribute VVP most RBS to TO the DT success NN or CC failure NN of IN a DT merger NN , , it PP is VBZ difficult JJ to TO achieve VV in IN practice NN . SENT Top JJ executives NNS , , not RB to TO mention VV ordinary JJ workers NNS , , of IN the DT target NN firm NN are VBP usually RB destabilized VVN by IN being VBG acquired VVN and CC need VVP to TO feel VV secure VV quickly RB if IN integration NN is VBZ to TO succeed VV . SENT The DT blending NN of IN management NN teams NNS depends VVZ on RB inter VV firm NN mobility NN , , training NN and CC homogeneity NN in IN management NN practices NNS which WDT facilitate VVP or CC impede VV the DT forging VVG of IN a DT new JJ , , shared JJ corporate JJ culture NN . SENT The DT study NN found VVD that IN in IN reality NN teams NNS take VVP much RB longer JJR to TO integrate VV , , with IN the DT rapidity NN dependent JJ on IN social JJ aspects NNS , , particularly RB if IN the DT merger NN involves VVZ closures NNS and CC redundancies NNS . SENT A DT similar JJ study NN 82 CD by IN KPMG NP identifies VVZ the DT first JJ 100 CD post NN transaction NN days NNS as IN the DT period NN most RBS critical JJ to TO value NN creation NN . SENT It PP is VBZ also RB the DT time NN of IN most JJS anxiety NN and CC uncertainty NN for IN both DT acquirer NN and CC target NN because IN everyone NN expects VVZ change NN but CC is VBZ unsure JJ about IN the DT form NN it PP will MD take VV . SENT Merger NN implementation NN involves VVZ tricky JJ management NN and CC personnel NNS issues NNS . SENT sales NNS forces NNS must MD be VB integrated VVN , , management NN responsibilities NNS redefined VVD , , facilities NNS combined VVN and CC employees NNS fired VVN or CC relocated VVN . SENT Some DT managers NNS believe VVP there EX are VBP good JJ reasons NNS why WRB these DT issues NNS cannot NN be VB completely RB aired VVN beforehand RB , , including VVG the DT fact NN that IN individuals NNS with IN the DT information NN might MD try VV to TO sabotage VV deals NNS for IN fear NN of IN their PP$ jobs NNS . SENT Others NNS have VHP argued VVN that DT prior JJ disclosure NN might MD increase VV the DT probability NN of IN insider NN trading NN and CC lay VV the DT company NN open JJ to TO expensive JJ time NN consuming NN investigation NN from IN securities NNS authorities NNS . SENT Unions NNS counter VVP that IN neither CC of IN these DT arguments NNS stand VVP . SENT the DT right NN to TO consultations NNS and CC information NN enshrined VVN in IN legal JJ provisions NNS does VVZ not RB nullify VV management NN s PP decision NN making VVG prerogatives NNS . SENT neither CC has VHZ there RB been VBN any DT evidence NN of IN union NN representatives NNS breaching VVG confidentiality NN . SENT Countries NNS such JJ as IN the DT Netherlands NP , , where WRB a DT code NN exists VVZ between IN the DT social JJ partners NNS and CC the DT Dutch NP Stock NP Exchange NP , , are VBP given VVN as IN an DT example NN where WRB confidentiality NN rules NNS and CC information NN and CC consultation NN rights NNS can MD be VB balanced VVN without IN problem NN . SENT Although IN the DT Nordic JJ region NN has VHZ witnessed VVN the DT most RBS intensive JJ M NP A DT driven VVN consolidation NN in IN Europe NP , , the DT Confederation NP of IN the DT Nordic JJ Bank NP , , Finance NP and CC Insurance NP Unions NNS NFU NP reports NNS satisfaction NN with IN the DT way NN the DT mainly RB cross VVP border NN process NN has VHZ developed VVN , , even RB though IN there EX may MD have VH been VBN some DT underestimation NN of IN its PP$ negative JJ consequences NNS . SENT NFU NP believes VVZ the DT alternative NN in IN market NN mergers NNS entailing VVG widespread JJ rationalization NN and CC massive JJ lay VVP offs NNS would MD have VH been VBN a DT much RB worse JJR prospect NN . SENT Workers NNS and CC their PP$ representatives NNS elsewhere RB , , even RB in IN some DT countries NNS where WRB the DT legal JJ obligation NN for IN information NN and CC consultation NN exists VVZ , , complain VVP that IN they PP are VBP generally RB not RB informed VVN or CC informed VVN only RB after IN M NP As IN involving VVG their PP$ employers NNS have VHP actually RB occurred VVN . SENT And CC yet RB the DT Nordic JJ consolidation NN illustrates VVZ that DT worker NN involvement NN can MD contribute VV decisively RB to TO the DT successful JJ integration NN and CC achievement NN of IN merger NN objectives NNS . SENT Post NN merger NN social JJ dialogue NN , , bringing VVG together RB management NN and CC all PDT the DT unions NNS in IN the DT merging VVG companies NNS , , is VBZ effective JJ in IN helping VVG to TO dispel VV the DT uncertainty NN and CC reduce VV the DT risks NNS of IN eroding VVG the DT industrial JJ relations NNS environment NN . SENT The DT opportunity NN for IN both DT sides NNS to TO get VV to TO know VV each DT other JJ better JJR and CC to TO collaborate VV on IN harmonization NN plans NNS for IN the DT integrated JJ organization NN signals VVZ staff NN that IN their PP$ interests NNS will MD get VV adequate JJ consideration NN in IN the DT new JJ regime NN . SENT Under IN the DT principle NN of IN co NP determination NN in IN many JJ Nordic JJ countries NNS , , staff NN have VHP a DT right NN to TO influence VV corporate JJ strategies NNS , , based VVN on IN their PP$ right NN of IN representation NN on IN the DT corporate JJ board NN , , shop NN stewards NNS right RB to TO express VV the DT employees NNS interests NNS and CC state VV their PP$ points NNS of IN view NN to TO management NN and CC the DT right NN of IN employees NNS to TO be VB informed VVN of IN and CC to TO influence VV management NN decisions NNS . SENT Employees NNS in IN all PDT the DT countries NNS , , except IN Iceland NP , , have VHP a DT statutory JJ right NN to TO a DT seat NN on IN the DT boards NNS of IN companies NNS with IN more JJR than IN a DT certain JJ number NN of IN employees NNS . SENT In IN Denmark NP and CC Sweden NP , , this DT right NN embraces VVZ employees NNS in IN parent NN subsidiary NN corporate JJ structures NNS . SENT Financial JJ sector NN basic JJ agreements NNS in IN all PDT the DT countries NNS specify VV procedures NNS for IN company NN level NN co NP determination NN . SENT Such JJ agreements NNS , , widespread JJ at IN corporate JJ levels NNS in IN Norway NP , , Sweden NP and CC Finland NP , , but CC less RBR common JJ in IN Denmark NP , , specify VV the DT type NN of IN questions NNS to TO be VB discussed VVN between IN the DT local JJ union NN and CC management NN and CC the DT structures NNS and CC procedures NNS for IN doing VVG this DT . SENT In IN Norway NP , , Denmark NP and CC Finland NP , , discussions NNS normally RB take VVP place NN in IN specially RB elected VVN bodies NNS . SENT In IN Sweden NP co NP determination NN operates VVZ directly RB between IN local JJ union NN representatives NNS and CC management NN . SENT Co NP determination NN does VVZ not RB require VV managers NNS and CC employees NNS to TO agree VV on IN specific JJ issues NNS and CC thus RB avoids VVZ giving VVG employees NNS a DT veto NN over IN management NN decisions NNS . SENT The DT system NN s PP fundamental JJ logic NN nevertheless RB provides VVZ for IN the DT right NN to TO be VB informed VVN of IN management NN plans NNS and CC to TO state VV opinions NNS before IN they PP are VBP implemented VVN . SENT Furthermore RB , , it PP allows VVZ significant JJ freedom NN to TO develop VV bipartite JJ solutions NNS adapted VVN to TO corporate JJ strategies NNS and CC market NN positions NNS . SENT MeritaNordbanken NP and CC other JJ Nordic JJ financial JJ firms NNS provide VVP an DT excellent JJ illustration NN of IN how WRB the DT system NN works VVZ . SENT In IN addition NN to TO an DT employee NN representative NN from IN both DT Sweden NP and CC Finland NP on IN the DT company NN board NN , , a DT Nordic JJ works NNS council NN provides VVZ a DT forum NN for IN three CD union NN representatives NNS from IN each DT country NN to TO meet VV top JJ management NN approximately RB once RB a DT month NN . SENT Given VVN the DT high JJ degree NN of IN transnational JJ integration NN of IN activities NNS and CC the DT fact NN that IN the DT two CD component NN banks NNS are VBP on IN an DT equal JJ basis NN , , employees NNS representatives NNS are VBP substantially RB involved VVN in IN decision NN making VVG processes NNS at IN different JJ levels NNS . SENT There EX is VBZ also RB a DT Swedish JJ Finnish JJ union NN agenda NN for IN joint JJ action NN . SENT In IN some DT cases NNS , , however RB , , cross VVP border NN mergers NNS can MD sometimes RB have VH substantial JJ unequal JJ effects NNS on IN employees NNS chances NNS to TO participate VV in IN decision NN making VVG processes NNS . SENT In IN Skandia NP , , a DT Nordic JJ works NNS council NN existed VVD in IN the DT early JJ 1990 CD s PP but CC was VBD subsequently RB disbanded VVN and CC was VBD replaced VVN by IN a DT European JJ works NNS council NN 1999 CD that WDT includes VVZ employee NN representatives NNS from IN outside IN the DT Nordic JJ countries NNS although IN only JJ Swedish JJ employees NNS are VBP represented VVN on IN the DT board NN . SENT Co NP determination NN structures NNS in IN Skandia NP have VHP been VBN heavily RB affected VVN by IN the DT founding NN of IN a DT new JJ Nordic JJ insurance NN corporation NN , , If IN , , which WDT has VHZ merged VVN the DT company NN s PP non JJ life NN insurance NN activities NNS with IN those DT of IN Norway NP s PP Storebrand NP and CC Finland NP s PP Pohjola NP . SENT If IN employees NNS from IN Sweden NP , , Finland NP and CC Norway NP are VBP represented VVN on IN the DT central JJ executive NN committee NN . SENT Skandia NP has VHZ tried VVN to TO develop VV a DT high JJ degree NN of IN Nordic JJ integration NN and CC employee NN involvement NN , , but CC the DT unequal JJ size NN and CC position NN of IN the DT parent NN company NN and CC the DT subsidiaries NNS have VHP resulted VVN in IN cleavages NNS between IN the DT corporate JJ unions NNS in IN the DT three CD countries NNS and CC between IN the DT employees NNS in IN Norway NP and CC Denmark NP and CC top JJ management NN in IN Sweden NP . SENT In IN Denmark NP s PP Den NP Danske NP Bank NP , , the DT purchase NN of IN banks NNS in IN Norway NP and CC Sweden NP has VHZ resulted VVN in IN a DT feeling NN of IN loss NN of IN influence NN for IN employees NNS in IN those DT countries NNS who WP no RB longer RB have VH top JJ level NN representation NN in IN the DT parent NN company NN . SENT There EX are VBP efforts NNS by IN company NN unions NNS in IN the DT three CD countries NNS to TO establish VV a DT European JJ works NNS council NN although IN top JJ management NN prefers VVZ to TO deal VV with IN employee NN issues NNS at IN the DT national JJ level NN and CC does VVZ not RB see VV much JJ relevance NN in IN a DT transnational JJ co NP determination NN body NN . SENT Only RB Danish JJ employee NN representatives NNS are VBP included VVN on IN the DT board NN which WDT probably RB explains VVZ the DT fact NN that IN the DT bank NN s PP regional JJ integration NN is VBZ considered VVN poor JJ . SENT NFU NP has VHZ set VVN itself PP the DT immediate JJ task NN of IN systematically RB developing VVG connections NNS between IN unions NNS in IN different JJ national JJ companies NNS as IN a DT platform NN for IN building VVG transnational JJ co NP determination NN structures NNS and CC , , in IN the DT long JJ term NN , , equal JJ representation NN for IN employees NNS in IN all DT national JJ companies NNS in IN all DT transnational JJ decision NN making VVG processes NNS . SENT Elsewhere RB in IN Europe NP , , the DT merger NN in IN France NP among IN AGF NP , , Athena NP and CC Allianz NP France NP in IN 1998 CD saw VVD management NN of IN the DT newly RB integrated VVN company NN encouraging VVG collaboration NN among IN unions NNS of IN the DT constituent JJ organizations NNS with IN which WDT it PP then RB negotiated VVD a DT common JJ agreement NN establishing VVG a DT single JJ works NNS council NN to TO harmonize VV working VVG conditions NNS and CC facilitate VV mobility NN within IN the DT merged JJ structure NN . SENT Failure NN to TO consult VV unions NNS may MD have VH negative JJ consequences NNS for IN merger NN proposals NNS . SENT Some DT observers NNS have VHP concluded VVN that DT trade NN union NN opposition NN may MD have VH played VVN a DT significant JJ role NN in IN blocking VVG the DT proposed VVN three CD way NN merger NN among IN SocGen NP , , BNP NP and CC Paribas NP . SENT The DT major JJ trade NN unions NNS CFDT NP , , FO NP , , SNB NP CGC NP and CC CGT NP agreed VVD a DT common JJ stance NN accepting VVG that IN the DT banking NN sector NN could MD not RB remain VV static JJ in IN today NN s PP competitive JJ situation NN but CC calling VVG for IN the DT change NN process NN to TO be VB based VVN on IN social JJ partnership NN and CC cooperation NN rather RB than IN through IN aggressive JJ market NN based VVN takeover NN manoeuvres NNS . SENT Current JJ draft NN legislation NN will MD require VV bidders NNS to TO explain VV their PP$ strategic JJ orientation NN , , including VVG social JJ aspects NNS , , to TO the DT target NN company NN s PP works VVZ council NN or CC be VB deprived VVN of IN their PP$ shares NNS voting VVG rights NNS in IN the DT target NN company NN . SENT The DT Netherlands NP illustrates VVZ the DT increasing VVG weight NN of IN M NP As IN in IN collective JJ bargaining NN . SENT The DT trade NN union NN , , De NP Unie NP , , Vakbond NP voor NP industrie NP en IN dienstverlening NN , , reports VVZ that IN since IN the DT mergers NNS between IN ABN NP and CC AMRO NP and CC NMB NP with IN Postbank NP to TO form VV ING NP Group NP , , the DT differences NNS among IN the DT three CD major JJ banks NNS ABN NP AMRO NP , , ING NP and CC Rabo NP have VHP deepened VVD . SENT It PP has VHZ become VVN increasingly RB difficult JJ to TO agree VV upon IN a DT common JJ collective JJ agreement NN each DT year NN . SENT ING NP , , a DT financial JJ conglomerate NN , , poses VVZ particular JJ problems NNS because IN the DT group NN is VBZ subject JJ to TO the DT collective JJ agreement NN for IN the DT banking NN sector NN with IN an DT average JJ 36 CD working JJ hours NNS week NN and CC the DT collective JJ agreement NN for IN the DT insurance NN industry NN 38 CD . SENT 4 CD working JJ hours NNS week NN . SENT As IN a DT consequence NN , , integrating VVG the DT two CD sides NNS of IN the DT group NN has VHZ been VBN difficult JJ . SENT Employers NNS have VHP been VBN examining VVG the DT possibility NN of IN company NN level NN agreements NNS rather RB than IN sectoral JJ collective JJ agreements NNS to TO overcome VV such JJ problems NNS and CC in IN January NP 2000 CD , , ABN NP AMRO NP , , Fortis NP , , ING NP , , Rabo NP and CC SNS NP Real NP announced VVD a DT decision NN to TO have VH individual JJ company NN agreements NNS which WDT will MD cover VV 90 CD per IN cent NN of IN banking NN staff NN . SENT The DT remaining JJ banks NNS employing VVG only RB a DT total NN of IN 10 CD , , 000 CD staff NN will MD continue VV to TO be VB subject JJ to TO a DT sectoral JJ collective JJ agreement NN . SENT Trade NN union NN action NN Finance NP sector NN trade NN unions NNS generally RB accept VVP the DT inevitability NN of IN M NP As IN and CC sectoral JJ consolidation NN , , arguing VVG that IN a DT cooperative NN rather RB than IN an DT adversarial NN industrial JJ relations NNS climate NN is VBZ necessary JJ . SENT Effective JJ unions NNS reshape VV and CC enhance VV management NN practices NNS that WDT lead VVP to TO improved JJ organization NN performance NN and CC help VV create VV conflict NN resolution NN processes NNS that WDT are VBP fair JJ and CC transparent JJ . SENT Social JJ dialogue NN should MD provide VV employees NNS with IN the DT means VVZ to TO air VV grievances NNS on IN the DT changes NNS in IN the DT sector NN and CC give VV them PP the DT opportunity NN to TO be VB heard VVN . SENT Trade NN unions NNS , , rather RB than IN individual JJ workers NNS , , have VHP an DT industry NN wide JJ perspective NN enabling VVG them PP to TO develop VV essential JJ links NNS with IN other JJ stakeholders NNS and CC to TO temper VV management NN excesses NNS . SENT A DT major JJ goal NN of IN trade NN unions NNS is VBZ to TO convince VV employers NNS and CC markets NNS of IN the DT need NN for IN financial JJ institutions NNS to TO look VV further RBR than IN cost VV income NN ratios NNS as IN the DT basis NN for IN ascertaining VVG success NN . SENT They PP argue VVP that IN , , for IN the DT financial JJ sector NN to TO prosper VV , , institutions NNS must MD not RB only RB invest VV in IN their PP$ human JJ capital NN but CC also RB work VV within IN their PP$ communities NNS to TO be VB good JJ corporate JJ citizens NNS . SENT Trade NN union NN strategies NNS are VBP evolving VVG in IN tandem NN with IN developments NNS in IN the DT general JJ world NN of IN work NN and CC those DT specific NN to TO the DT sector NN . SENT Global JJ alliances NNS and CC mergers NNS among IN trade NN unions NNS have VHP increased VVN with IN the DT acceleration NN in IN M NP As IN around IN the DT world NN , , a DT good JJ example NN of IN which WDT is VBZ the DT creation NN of IN a DT new JJ international JJ trade NN union NN confederation NN , , Union NP Network NP International NP UNI NN , , comprising VVG workers NNS organizations NNS in IN financial JJ services NNS , , posts NNS and CC telecommunications NNS and CC media NNS and CC publishing NN . SENT The DT new JJ organization NN covers VVZ a DT total NN of IN more JJR than IN 900 CD trade NN unions NNS representing VVG 15 CD million CD members NNS in IN 140 CD countries NNS . SENT The DT new JJ organization NN has VHZ adapted VVN information NN technologies NNS as IN a DT major JJ tool NN . SENT When WRB a DT strike NN broke VVD out RP in IN the DT HSBC NP in IN Malaysia NP , , for IN example NN , , UNI NN members NNS worldwide RB were VBD kept VVN informed VVN of IN developments NNS by IN Internet NN so IN that WDT they PP could MD add VV their PP$ pressure NN on IN management NN through IN local JJ action NN . SENT Negotiations NNS between IN the DT company NN s PP global JJ management NN and CC local JJ and CC international JJ union NN representatives NNS for IN a DT final JJ settlement NN of IN the DT dispute NN were VBD carried VVN out RP via IN teleconferencing VVG . SENT UNI NN played VVD an DT equally RB important JJ role NN in IN negotiating VVG a DT consultation NN and CC information NN agreement NN between IN Barclays NP Africa NP and CC trade NN unions NNS in IN the DT region NN , , on IN the DT model NN of IN the DT European JJ works NNS councils NNS . SENT Trade NN union NN mergers NNS and CC other JJ cooperative JJ combinations NNS are VBP also RB developing VVG at IN the DT national JJ level NN to TO strengthen VV workers NNS influence NN . SENT The DT United NP Kingdom NP s PP UNIFI NP , , with IN approximately RB 190 CD , , 000 CD members NNS , , is VBZ a DT result NN of IN a DT merger NN among IN BIFU NP Banking NP , , Insurance NP and CC Finance NP Union NP , , NatWest NP and CC Barclays NP unions NNS . SENT In IN Germany NP , , HBV NP commerce NN , , banking NN and CC insurance NN and CC its PP$ 470 CD , , 000 CD members NNS has VHZ joined VVN forces NNS with IN DAG NN s PP banking VVG sector NN employees NNS 480 CD , , 000 CD and CC a DT part NN of IN those DT of IN TV NN transport NN and CC services NNS , , 1 CD , , 580 CD , , 000 CD members NNS . SENT These DT trade NN union NN amalgamations NNS are VBP a DT response NN to TO consolidation NN among IN enterprises NNS in IN the DT sector NN . SENT In IN addition NN , , the DT three CD unions NNS plan VVP to TO merge VV with IN IG NP Medien NP media NNS and CC culture NN 185 CD , , 000 CD members NNS and CC the DT DPG NP postal JJ trade NN union NN 475 CD , , 000 CD members NNS in IN 2001 CD to TO form VV a DT single JJ service NN sector NN union NN . SENT Although IN most JJS German JJ unions NNS remain VVP attached VVN to TO the DT principle NN of IN industrial JJ branch NN organization NN , , convergence NN among IN different JJ sectors NNS is VBZ influencing VVG trade NN union NN organization NN . SENT In IN Italy NP , , similar JJ consolidation NN is VBZ considered VVN unnecessary JJ since IN unions NNS usually RB act VVP in IN unison NN when WRB required VVN . SENT In IN addition NN to TO the DT above JJ intra NN union NN developments NNS and CC political JJ action NN aimed VVN at IN ensuring VVG social JJ considerations NNS in IN M NP As IN and CC restructuring NN processes NNS , , alliances NNS have VHP been VBN developed VVN with IN community NN and CC civil JJ society NN organizations NNS and CC other JJ pressure NN groups NNS at IN local JJ , , national JJ and CC international JJ levels NNS , , to TO highlight VV possible JJ negative JJ consequences NNS of IN corporate JJ combinations NNS and CC financial JJ sector NN consolidation NN . SENT The DT role NN of IN the DT ILO NP The NP ILO NP tripartite JJ meeting NN on IN the DT social JJ effects NNS of IN structural JJ change NN in IN banking NN of IN 1993 CD called VVN on IN the DT ILO NP to TO promote VV the DT application NN of IN all DT relevant JJ international JJ labour NN standards NNS , , particularly RB the DT Freedom NN of IN Association NP and CC Protection NP of IN the DT Right NP to TO Organise VV Convention NP , , 1948 CD No DT . SENT 87 CD and CC the DT Right NP to TO Organise VV and CC Collective JJ Bargaining NN Convention NN , , 1949 CD No DT . SENT 98 CD , , in IN the DT financial JJ services NNS sector NN . SENT Dialogue NN and CC cooperation NN between IN the DT social JJ partners NNS on IN human JJ resource NN developments NNS and CC other JJ matters NNS emanating VVG from IN the DT rapidly RB changing VVG and CC increasingly RB global JJ environment NN that IN impact NN employment NN and CC labour NN relations NNS were VBD to TO be VB encouraged VVN and CC information NN on IN topics NNS of IN interest NN to TO the DT sector NN e NN . SENT g NN . SENT the DT extent NN of IN overtime NN and CC its PP$ relationship NN to TO employment NN . SENT working VVG patterns NNS and CC the DT terms NNS of IN employment NN and CC conditions NNS of IN work NN of IN banking NN and CC finance VV sector NN workers NNS were VBD to TO be VB collected VVN and CC disseminated VVN . SENT As IN discussed VVN in IN the DT report NN , , M NP As IN in IN the DT financial JJ services NNS industry NN may MD have VH a DT substantial JJ negative JJ impact NN on IN jobs NNS beyond IN the DT net JJ effect NN on IN financial JJ sector NN employment NN , , particularly RB if IN access NN to TO credit NN is VBZ substantially RB reduced VVN for IN small JJ and CC medium NN sized VVD enterprises NNS . SENT A DT growing VVG number NN of IN countries NNS now RB consider VVP that IN supporting VVG and CC fostering VVG SMEs NP is VBZ essential JJ for IN promoting VVG employment NN . SENT Although IN the DT Employment NP Policy NP Convention NP , , 1964 CD No DT . SENT 122 CD , , was VBD adopted VVN long RB before IN the DT current JJ merger NN wave NN struck VVD the DT financial JJ markets NNS , , it PP has VHZ many JJ important JJ potential JJ contributions NNS to TO make VV to TO minimize VV the DT negative JJ impact NN of IN M NP As IN on IN employment NN . SENT The DT most RBS important JJ features NNS of IN the DT Convention NP are VBP the DT stress NN it PP places VVZ on IN an DT integrated JJ approach NN to TO developing VVG employment NN policies NNS . SENT Responsibility NN for IN employment NN extends VVZ to TO all DT government NN departments NNS , , including VVG ministries NNS of IN finance NN , , who WP are VBP obliged VVN to TO work VV together RB and CC to TO ensure VV that IN the DT impact NN of IN their PP$ respective JJ policies NNS promotes VVZ rather RB than IN diminishes VVZ employment NN . SENT The DT Convention NP also RB advocates VVZ consultation NN with IN workers NNS and CC employers NNS organizations NNS , , stressing VVG that IN any DT policies NNS formulated VVN should MD be VB appropriate JJ for IN all DT parties NNS concerned VVN . SENT The DT ILO NP Tripartite JJ Declaration NP of IN Principles NNS concerning VVG Multinational JJ Enterprises NPS and CC Social NP Policy NP , , adopted VVN by IN the DT Governing VVG Body NN in IN 1977 CD and CC the DT associated JJ ILO NP programme NN of IN promotional JJ activities NNS , , technical JJ assistance NN and CC advisory JJ services NNS , , is VBZ similarly RB relevant JJ to TO M NP As IN in IN banking NN and CC financial JJ services NNS . SENT As IN this DT report NN suggests VVZ , , although IN the DT overwhelming JJ majority NN of IN M NP As RB are VBP presently RB in IN market NN , , it PP is VBZ expected VVN that IN , , as IN domestic JJ market NN consolidation NN is VBZ completed VVN , , cross VVP border NN combinations NNS and CC thus RB the DT role NN of IN multinational JJ enterprises NNS MNEs NP in IN the DT process NN will MD increase VV in IN relative JJ importance NN . SENT The DT Declaration NP urges VVZ governments NNS , , the DT MNEs NP and CC the DT workers NNS , , as IN equal JJ partners NNS in IN this DT triangular JJ relationship NN , , to TO assume VV commensurate JJ responsibilities NNS in IN order NN to TO ensure VV a DT peaceful JJ industrial JJ relations NNS climate NN as IN a DT foundation NN for IN labour NN and CC social JJ peace NN . SENT It PP further RBR calls VVZ upon IN MNEs NP , , when WRB they PP are VBP considering VVG changes NNS in IN operations NNS including VVG those DT resulting VVG from IN mergers NNS and CC takeovers NNS which WDT would MD have VH major JJ employment NN effects NNS , , to TO provide VV reasonable JJ notice NN of IN such JJ changes NNS to TO the DT appropriate JJ government NN authorities NNS and CC workers NNS representatives NNS so RB that IN the DT implications NNS might MD be VB jointly RB examined VVN to TO mitigate VV adverse JJ effects NNS to TO the DT greatest JJS extent NN possible JJ . SENT This DT is VBZ particularly RB important JJ in IN the DT case NN of IN the DT closure NN of IN any DT entity NN involving VVG collective JJ lay VVP offs NNS or CC dismissals NNS . SENT 7 CD . SENT Summary NN and CC suggested VVD points NNS for IN discussion NN Mergers NP and CC acquisitions NNS M NP As RB are VBP driving VVG most JJS profit NN making VVG sectors NNS towards IN consolidation NN and CC concentration NN and CC nowhere RB is VBZ this DT more RBR true JJ than IN in IN the DT financial JJ services NNS sector NN . SENT The DT report NN examines VVZ the DT key JJ facts NNS and CC characteristics NNS of IN this DT trend NN . SENT developments NNS in IN various JJ regions NNS . SENT different JJ aspects NNS of IN the DT employment NN dimension NN . SENT practices NNS to TO manage VV human JJ resources NNS in IN the DT context NN of IN M NP As IN integration NN and CC restructuring NN . SENT implications NNS for IN sectoral JJ remuneration NN and CC other JJ compensation NN issues NNS . SENT working VVG time NN . SENT and CC consequences NNS for IN employee NN training NN , , motivation NN , , work VV related JJ stress NN and CC job NN security NN . SENT The DT scope NN , , institutional JJ framework NN and CC potential NN for IN social JJ dialogue NN in IN preserving VVG harmonious JJ industrial JJ relations NNS in IN the DT context NN of IN M NP A DT related JJ employment NN losses NNS are VBP highlighted VVN , , as RB is VBZ the DT role NN of IN the DT ILO NP and CC international JJ labour NN standards NNS . SENT General JJ trends NNS , , characteristics NNS and CC driving VVG factors NNS in IN M NP As IN Financial NP services NNS support VVP employment NN directly RB by IN providing VVG high JJ quality NN jobs NNS and CC indirectly RB through IN their PP$ pivotal JJ role NN in IN maintaining VVG credit NN to TO other JJ sectors NNS . SENT A DT well RB functioning VVG sector NN is VBZ crucial JJ to TO a DT national JJ economy NN s PP well RB being JJ and CC to TO international JJ economic JJ growth NN . SENT The DT volume NN and CC monetary JJ value NN of IN M NP As RB reached VVD exceptional JJ levels NNS in IN the DT 1990 CD s PP , , contributing VVG to TO the DT growing VVG trend NN towards IN sectoral JJ concentration NN . SENT this DT resulted VVD in IN a DT steep JJ decline NN in IN the DT number NN of IN financial JJ service NN establishments NNS , , distribution NN outlets NNS and CC staff NN levels NNS . SENT While IN the DT process NN is VBZ truly RB global JJ , , developed JJ countries NNS are VBP the DT most RBS affected VVN by IN these DT developments NNS . SENT Although IN M NP As RB remain VVP overwhelmingly RB national JJ in IN scope NN , , increased VVD cross NN border NN operations NNS are VBP expected VVN as IN internal JJ market NN consolidation NN is VBZ completed VVN . SENT Diverse JJ factors NNS have VHP been VBN cited VVN as IN the DT drivers NNS of IN the DT consolidation NN process NN in IN the DT financial JJ services NNS sector NN , , including VVG . SENT shareholder NN value NN maximization NN , , as RB well RB as IN efficiency NN and CC synergy NN goals NNS . SENT deregulation NN , , liberalization NN , , privatization NN and CC integration NN of IN markets NNS . SENT need NN for IN size NN and CC adequate JJ resource NN bases NNS . SENT new JJ technologies NNS . SENT and CC , , most RBS importantly RB , , increased JJ competition NN . SENT And CC yet RB , , most JJS research NN confirms VVZ that IN two CD thirds NNS of IN M NP As RB fail VVP to TO achieve VV their PP$ objectives NNS for IN various JJ reasons NNS . SENT The DT benefit NN of IN size NN and CC economies NNS of IN scale NN are VBP usually RB nullified VVN by IN increased JJ complexity NN and CC losses NNS related VVN to TO top VV heavy JJ organizations NNS , , while IN the DT difficulties NNS of IN adequately RB blending VVG cultural JJ and CC other JJ human JJ factors NNS in IN the DT integration NN of IN the DT combined JJ enterprise NN are VBP often RB underestimated VVN . SENT Internet NN banking NN is VBZ also RB challenging VVG physical JJ size NN approaches NNS . SENT Those DT in IN support NN of IN M NP As RB emphasize VVP that IN they PP contribute VVP to TO greater JJR enterprise NN efficiency NN , , profitability NN and CC by IN extension NN increased VVD economy NN wide JJ employment NN , , arguing VVG that IN the DT examination NN of IN their PP$ overall JJ impact NN should MD not RB be VB limited VVN to TO the DT level NN of IN the DT individual JJ firm NN . SENT Critics NNS dispute VVP both DT efficiency NN and CC employment NN benefits NNS , , however RB , , pointing VVG to TO the DT immediate JJ job NN reductions NNS that WDT go VVP hand NN in IN hand NN with IN M NP A NP announcements NNS . SENT They PP also RB stress VVP the DT inevitable JJ decline NN in IN sectoral JJ competition NN and CC service NN from IN greater JJR concentration NN , , leading VVG to TO reduced JJ credit NN support NN to TO small JJ and CC medium NN sized VVD enterprises NNS employment NN generation NN . SENT Employment NN effects NNS Employment NN in IN the DT financial JJ services NNS is VBZ in IN general JJ decline NN , , although IN the DT trend NN cannot NN be VB solely RB attributed VVN to TO the DT effects NNS of IN M NP As RB . SENT Other JJ factors NNS , , such JJ as IN greater JJR competition NN , , increased VVD use NN of IN information NN and CC communication NN technologies NNS ICT JJ , , financial JJ distress NN and CC rationalization NN unrelated JJ to TO M NP As RB , , but CC sometimes RB facilitated VVD by IN it PP , , are VBP all DT contributory JJ factors NNS . SENT Nonetheless RB , , the DT fact NN that IN M NP As RB are VBP invariably RB accompanied VVN by IN announcements NNS of IN job NN reductions NNS , , sometimes RB on IN a DT massive JJ scale NN , , establishes VVZ an DT unambiguous JJ link NN between IN M NP As IN and CC the DT decline NN in IN employment NN in IN popular JJ perceptions NNS and CC in IN the DT view NN of IN some DT analysts NNS . SENT For IN instance NN , , conservative JJ estimates NNS indicate VVP that IN at IN least JJS 130 CD , , 000 CD finance NN jobs NNS have VHP disappeared VVN in IN western JJ Europe NP as IN a DT result NN of IN M NP As IN during IN the DT 1990 CD s PP . SENT Ascertaining VVG the DT precise JJ effects NNS is VBZ complicated VVN by IN the DT fact NN that IN official JJ statistics NNS on IN banking NN and CC financial JJ services NNS employment NN include VVP an DT ever RB increasing VVG number NN of IN workers NNS in IN atypical JJ employment NN . SENT Because IN rationalization NN mostly RB affects VVZ such JJ operation NN areas NNS as IN bank NN branch NN networks NNS and CC the DT lower JJR hierarchical JJ levels NNS which WDT are VBP highly RB feminine JJ , , there EX are VBP grounds NNS to TO believe VV that IN M NP A DT related JJ effects NNS of IN enterprise NN restructuring NN are VBP gender NN differentiated VVN and CC may MD be VB arresting JJ or CC even RB reversing VVG progress NN in IN affirmative JJ programmes NNS . SENT Although IN employment NN gains NNS in IN these DT areas NNS do VVP not RB in IN any DT way NN compensate VV for IN the DT greater JJR losses NNS generated VVN by IN M NP As IN in IN financial JJ service NN employment NN , , M NP As RB do VVP generate VV jobs NNS in IN specific JJ financial JJ specialities NNS . SENT investment NN bands NNS and CC other JJ enterprises NNS involved VVN in IN M NP A DT advisory JJ services NNS and CC financing NN . SENT Employment NN in IN call NN centres NNS has VHZ also RB increased VVN as IN jobs NNS have VHP been VBN shifted VVN from IN more JJR costly JJ branch NN networks NNS and CC other JJ traditional JJ financial JJ services NNS distribution NN outlets NNS , , although IN the DT quality NN and CC remuneration NN of IN these DT new JJ jobs NNS may MD not RB be VB comparable JJ with IN those DT they PP replace VVP . SENT A DT number NN of IN studies NNS also RB show VVP an DT inverse JJ relationship NN between IN the DT size NN of IN a DT financial JJ institution NN and CC its PP$ loan NN portfolio NN to TO small JJ and CC medium NN sized VVD enterprises NNS , , considered VVD the DT highest JJS generators NNS of IN employment NN worldwide RB . SENT However RB , , it PP is VBZ difficult JJ to TO determine VV with IN any DT precision NN the DT effect NN of IN this DT overall JJ employment NN . SENT Nor CC is VBZ it PP possible JJ to TO assess VV from IN currently RB available JJ data NNS the DT exact JJ contribution NN of IN the DT sector NN to TO inducing VVG employment NN in IN other JJ sectors NNS through IN its PP$ purchasing NN power NN as IN well RB as RB that IN of IN its PP$ employees NNS . SENT Working NN and CC employment NN conditions NNS A DT merger NN or CC takeover NN upsets NNS the DT links NNS between IN implicit JJ and CC explicit JJ contracts NNS in IN a DT company NN based VVN on IN trust NN between IN managers NNS and CC workers NNS , , themselves PP founded VVD on IN beliefs NNS and CC assumptions NNS regarding VVG mutual JJ responsibility NN between IN employer NN and CC employees NNS . SENT Integration NN also RB requires VVZ harmonization NN of IN various JJ aspects NNS of IN terms NNS and CC conditions NNS of IN employment NN to TO ensure VV common JJ practice NN in IN the DT combined JJ organization NN that WDT may MD change VV existing VVG human JJ resource NN management NN practices NNS of IN either DT or CC both DT organizations NNS . SENT Two CD conflicting JJ aims NNS appear VVP to TO characterize VV current JJ practices NNS in IN financial JJ sector NN remuneration NN . SENT the DT need NN to TO reduce VV labour NN costs NNS within IN a DT context NN of IN increasing VVG competition NN and CC decreasing VVG profitability NN . SENT and CC the DT necessity NN to TO compensate VV and CC adequately RB reward VV employee NN performance NN and CC commitment NN within IN an DT environment NN of IN continuous JJ and CC challenging JJ change NN . SENT Contingent JJ , , individualized VVN and CC explicitly RB performance NN based VVN reward NN systems NNS are VBP on IN the DT increase NN , , but CC changes NNS in IN compensation NN have VHP tended VVN to TO be VB less RBR dramatic JJ than IN expected VVN compared VVN with IN both DT current JJ rhetoric NN and CC experience NN in IN other JJ industries NNS perhaps RB because IN of IN the DT need NN to TO retain VV workers NNS loyalty NN and CC commitment NN to TO organizational JJ goals NNS in IN a DT highly RB competitive JJ business NN environment NN . SENT Sales NNS based VVN bonuses NNS and CC commissions NNS are VBP the DT most RBS widespread JJ types NNS of IN incentives NNS and CC banking NN has VHZ a DT greater JJR tendency NN than IN most JJS sectors NNS to TO award NN employees NNS share NN options NNS as IN supplements NNS to TO basic JJ pay NN . SENT Nevertheless RB , , workers NNS express VVP concern NN at IN what WP they PP consider VVP is VBZ a DT lack NN of IN transparency NN in IN reward NN systems NNS and CC an DT apparent JJ contradiction NN between IN objectives NNS requiring VVG team NN based VVN work NN and CC performance NN assessments NNS focusing VVG on IN individual JJ contribution NN . SENT The DT workers NNS are VBP calling VVG for IN better JJR balanced JJ individual NN and CC team NN based VVN rewards NNS . SENT Similarly RB , , trade NN unions NNS argue VVP that IN changes NNS to TO the DT psychological JJ contract NN , , including VVG erosion NN in IN job NN security NN , , are VBP not RB adequately RB reflected VVN in IN enterprise NN reward NN systems NNS . SENT Reduced JJ job NN security NN , , increased JJ workloads NNS , , anxiety NN and CC stress NN are VBP other JJ important JJ consequences NNS of IN heightened JJ M NP A DT activity NN . SENT Given VVN the DT demise NN of IN the DT lifetime NN employment NN tradition NN in IN the DT financial JJ services NNS , , it PP is VBZ argued VVN that IN the DT responsibility NN of IN employers NNS has VHZ shifted VVN to TO providing VVG their PP$ workers NNS with IN portable JJ skills NNS , , not RB just RB to TO facilitate VV greater JJR employability NN in IN order NN to TO assuage VV job NN insecurity NN but CC also RB because IN their PP$ enhanced JJ skills NNS are VBP an DT essential JJ competitive JJ tool NN for IN the DT enterprise NN . SENT As IN financial JJ service NN operators NNS reduce VV their PP$ headcount NN and CC expand VV their PP$ operations NNS , , workloads NNS , , overtime NN and CC work VV related JJ stress NN have VHP increased VVN . SENT The DT effects NNS on IN survivors NNS of IN M NP A DT related JJ downsizing NN have VHP sometimes RB been VBN lowered VVN morale NN and CC a DT deterioration NN in IN organizational JJ performance NN so RB essential JJ to TO today NN s PP highly RB competitive JJ markets NNS . SENT Social JJ dialogue NN Social NP dialogue NN is VBZ increasingly RB accepted VVN as IN the DT best JJS means NNS to TO manage VV the DT effects NNS of IN fundamental JJ changes NNS in IN the DT contemporary JJ world NN of IN work NN by IN seeking VVG to TO balance VV conflicting JJ interests NNS . SENT It PP is VBZ contingent JJ upon IN a DT social JJ , , economic JJ and CC political JJ climate NN conducive JJ to TO this DT process NN and CC upon IN independent JJ and CC strong JJ parties NNS willing JJ to TO cooperate VV . SENT Social JJ dialogue NN at IN different JJ levels NNS can MD be VB an DT effective JJ tool NN in IN meeting VVG the DT challenges NNS associated VVN with IN M NP As IN and CC financial JJ sector NN restructuring NN . SENT Merger NN implementation NN involves VVZ sensitive JJ management NN and CC personnel NNS issues NNS with IN far RB reaching VVG impacts NNS on IN workers NNS rights NNS . SENT Financial JJ sector NN workers NNS generally RB accept VVP the DT inevitability NN of IN M NP As RB , , but CC argue VVP that IN a DT cooperative JJ approach NN including VVG fulfilment NN of IN management NN obligations NNS to TO inform VV and CC consult VV their PP$ staff NN or CC their PP$ representatives NNS before IN M NP A DT decisions NNS are VBP taken VVN would MD preserve VV harmonious JJ industrial JJ relations NNS that WDT are VBP so RB vital JJ to TO enterprise NN productivity NN . SENT M NP As IN experience NN in IN jurisdictions NNS with IN cooperative JJ labour NN management NN traditions NNS , , including VVG through IN co NP determination NN arrangements NNS , , seems VVZ to TO confirm VV the DT case NN for IN active JJ social JJ dialogue NN on IN enterprise NN changes NNS and CC restructuring NN . SENT Employee NN perceptions NNS on IN the DT fairness NN of IN restructuring NN related VVD lay VV offs NNS seems VVZ to TO have VH significant JJ implications NNS for IN post NN merger NN organizational JJ commitment NN and CC performance NN . SENT No DT universal JJ solutions NNS exist VVP to TO guarantee VV successful JJ mergers NNS and CC each DT organization NN must MD develop VV programmes NNS that WDT address VVP the DT concerns NNS of IN all PDT its PP$ stakeholders NNS . SENT However RB , , constant JJ communications NNS with IN employees NNS and CC the DT involvement NN of IN worker NN representatives NNS in IN the DT entire JJ M NP A DT process NN , , thereby RB reassuring VVG staff NN that IN their PP$ interests NNS will MD be VB taken VVN adequately RB into IN account NN , , are VBP critical JJ success NN factors NNS . SENT Suggested VVN points NNS for IN discussion NN Taking VVG the DT foregoing JJ report NN into IN account NN , , the DT following VVG list NN of IN points NNS is VBZ offered VVN as IN a DT basis NN for IN discussion NN to TO enable VV the DT Meeting VVG to TO develop VV and CC adopt VV appropriate JJ conclusions NNS on IN the DT matters NNS it PP considers VVZ of IN primary JJ importance NN . SENT The DT Meeting VVG is VBZ , , of IN course NN , , free JJ to TO modify VV this DT list NN as IN it PP sees VVZ fit NN . SENT 1 LS . SENT General JJ aspects NNS of IN M NP As IN In IN the DT context NN of IN M NP As IN and CC other JJ competition NN related VVN factors NNS , , what WP measures VVZ should MD governments NNS and CC social JJ partners NNS adopt VVP to TO preserve VV high JJ quality NN universal JJ financial JJ services NNS . SENT 2 LS . SENT Employment NN a DT How NP have VH M NP As IN and CC related JJ reorganization NN affected VVD the DT levels NNS and CC quality NN of IN employment NN , , including VVG effects NNS on IN gender NN , , full JJ time NN and CC atypical JJ employment NN . SENT b SYM In IN the DT face NN of IN increased JJ competition NN , , how WRB can MD employment NN concerns NNS and CC the DT imperative NN for IN businesses NNS to TO restructure VV , , including VVG through IN M NP As RB , , be VB reconciled VVN . SENT c SYM What WP should MD the DT social JJ partners NNS and CC governments NNS do VVP to TO support VV M NP A DT objectives NNS while IN safeguarding VVG the DT levels NNS , , quality NN and CC equity NN of IN financial JJ services NNS employment NN . SENT 3 LS . SENT Working NN and CC employment NN conditions NNS a DT How WRB might MD financial JJ operators NNS human JJ resources NNS development NN and CC planning NN be VB used VVN to TO maximize VV the DT mutuality NN of IN interest NN between IN employee NN concerns NNS and CC the DT corporate JJ objectives NNS that WDT drive VVP M NP As RB . SENT b NN How WRB should MD job NN security NN in IN financial JJ services NNS be VB promoted VVN to TO increase VV employees NNS organizational JJ commitment NN , , motivation NN and CC performance NN so RB as RB to TO enhance VV the DT likelihood NN of IN achieving VVG M NP A DT goals NNS . SENT c SYM What WP should MD be VB done VVN to TO promote VV collective JJ bargaining NN in IN the DT banking NN and CC financial JJ services NNS sector NN taking VVG into IN account NN the DT growth NN of IN individual JJ incentive NN plans NNS and CC team NN based VVN reward NN systems NNS . SENT d SYM What WP should MD be VB the DT minimum JJ working NN and CC employment NN standards NNS of IN atypical JJ workers NNS in IN financial JJ services NNS . SENT 4 LS . SENT Training VVG a DT Can MD proactive JJ HRD NP strategies NNS be VB designed VVN to TO match VV financial JJ organizations NNS existing VVG human JJ capital NN with IN skills NNS requirements NNS evolution NN in IN the DT face NN of IN increased JJ competition NN , , sectoral JJ consolidation NN and CC occupational JJ changes NNS . SENT b SYM How NP can NN governments NNS , , employers NNS and CC workers NNS organizations NNS ensure VV financial JJ sector NN workers NNS continuous JJ acquisition NN of IN portable JJ skills NNS to TO enhance VV their PP$ employability NN in IN view NN of IN increased JJ retrenchments NNS related VVN to TO M NP As IN and CC other JJ business NN factors NNS . SENT 5 LS . SENT Social JJ dialogue NN a DT What WP should MD be VB the DT role NN of IN social JJ dialogue NN in IN the DT M NP A DT process NN and CC how WRB should MD this RB be VB harnessed VVN to TO support VV business NN and CC workers NNS needs NNS . SENT What WP should MD be VB the DT role NN of IN social JJ partners NNS , , their PP$ organizations NNS and CC governments NNS in IN ensuring VVG sound JJ industrial JJ relations NNS in IN the DT process NN . SENT b SYM How NP might NN redundancy NN criteria NNS and CC implementation NN modalities NNS be VB designed VVN to TO ensure VV maximum JJ equity NN and CC be VB in IN accordance NN with IN principles NNS of IN the DT ILO NP Termination NN of IN Employment NP Convention NP , , 1982 CD No DT . SENT 158 CD , , and CC its PP$ accompanying JJ Recommendation NN No RB . SENT 166 CD , , thus RB contributing VVG to TO productive JJ post NN merger NN industrial JJ relations NNS . SENT 6 CD . SENT ILO NP action NN What WP priority NN action NN s PP should MD the DT ILO NP take VV to TO assist VV member NN States NNS governments NNS , , employers NNS and CC workers NNS organizations NNS to TO analyse VV sectoral JJ trends NNS and CC adopt VV appropriate JJ long JJ term NN employment NN policies NNS at IN the DT national JJ and CC international JJ levels NNS , , taking VVG account NN of IN labour NN standards NNS relevant JJ to TO restructuring NN , , including VVG through IN M NP As RB . SENT 1 LS The DT changing VVG landscape NN for IN Canadian JJ financial JJ services NNS , , research NN paper NN prepared VVN for IN the DT Task NP Force NP on IN the DT Future NP of IN the DT Canadian JJ Financial NP Services NPS Sector NN Ottawa NP , , McKinsey NP and CC Company NP , , Sep NP . SENT 1998 CD . SENT 2 CD UNCTAD NP . SENT Impact NN of IN cross NN border NN mergers NNS and CC acquisitions NNS on IN development NN and CC policy NN issues NNS for IN consideration NN , , note NN by IN UNCTAD NP secretariat NN TD NP B NP COM NN . SENT 2 CD EM NN . SENT 7 CD 2 CD , , 8 CD June NP 2000 CD . SENT 3 CD ILO NP . SENT Decent JJ work NN , , Report NP of IN the DT Director NP General NP , , International NP Labour NN Conference NP , , 87 CD th NN Session NP , , Geneva NP , , 1999 CD , , p NN . SENT 1 LS . SENT 4 CD Australian JJ Bureau NP of IN Statistics NPS . SENT Finance NP Canberra NP , , ref NN . SENT 5611 CD . SENT 0 CD , , 1999 CD . SENT 5 CD KPMG NP . SENT Unlocking VVG shareholder NN value NN . SENT The DT keys NNS to TO success NN London NP , , 1999 CD . SENT 6 CD A NP . SENT N NP . SENT Berger NP et NP al NP . SENT . SENT Journal NP of IN Banking NP Finance NP , , Vol NP . SENT 23 CD Elsevier NP , , Netherlands NP , , 1999 CD , , pp NP . SENT 135 CD 194 CD . SENT 7 CD S NP . SENT Sinclair NP . SENT Bank NN mergers NNS and CC consumer NN protection NN in IN British NP Columbia NP , , prepared VVN for IN the DT British NP Columbia NP Task NP Force NP on IN Bank NP Mergers NP 1998 CD . SENT 8 CD A NP . SENT Berger NP et NP al NP . SENT , , op NN . SENT cit NNS . SENT 9 CD S NP . SENT A DT . SENT Rhoades NP . SENT The DT efficiency NN effects NNS of IN bank NN mergers NNS . SENT an DT overview NN of IN case NN studies NNS of IN nine CD mergers NNS , , in IN Journal NP of IN Banking NP and CC Finance NP Elsevier NP , , Netherlands NP , , 1998 CD , , Vol NP . SENT 22 CD , , pp NP . SENT 273 CD 291 CD . SENT 10 CD BBC NP News NP Online JJ . SENT Banking NN on IN size NN to TO compete VV http NN . SENT news NN . SENT bbc NN . SENT co NP . SENT uk NP , , 7 CD Feb NN . SENT 2000 CD . SENT 11 CD A NP . SENT Berger NP et NP al NP . SENT , , op NN . SENT cit NNS . SENT 12 CD The DT impact NN of IN bank NN mergers NNS and CC acquisitions NNS on IN small JJ business NN lending NN , , a DT conference NN report NN prepared VVN by IN the DT Office NP of IN Economic NP Research NP of IN the DT United NP States NPS Small NP Business NP Administration NP s PP Office NP of IN Advocacy NN Washington NP , , DC NP , , Oct NP . SENT 1997 CD . SENT 13 CD Finance NP Sector NN Union NP FSU NP . SENT submission NN to TO the DT ACCC NP regarding VVG the DT proposed VVN merger NN between IN Commonwealth NP Bank NP and CC Colonial NP Bank NP Melbourne NP , , FSU NP , , 2000 CD , , p NN . SENT 6 CD . SENT 14 CD ibid NN . SENT 15 CD R NN . SENT Watts NNS . SENT The DT web NN of IN deceit NN . SENT How WRB safe NN is VBZ internet NN banking NN . SENT Could MD a DT hacker NN clear VV your PP$ account NN . SENT , , Telegraph NP London NP , , website NN . SENT www JJ . SENT telegraph NN . SENT co NP . SENT uk NP , , 19 CD July NP 2000 CD . SENT 16 CD ibid NN . SENT 17 CD G NP . SENT Trefgarne NP . SENT Internet NP bank NN fails VVZ as IN Russian JJ founders NNS vanish VVP with IN funds NNS , , Telegraph NP London NP , , website NN . SENT www JJ . SENT telegraph NN . SENT co NP . SENT uk NP , , 9 CD Aug NN . SENT 1997 CD . SENT 18 CD M NP . SENT Peterson NP . SENT Europe NP s PP New NP Fusion NN . SENT As IN cost NN cutting VVG fades NNS abroad RB , , FIG NN bankers NNS focus VVP on IN Internet NN growth NN strategies NNS to TO drive VV bank NN mergers NNS , , in IN The DT Investment NP Dealers NPS Digest NP New NP York NP , , 27 CD Mar NP . SENT 2000 CD . SENT 19 CD M NP . SENT Goorey NP . SENT Merger NN disruption NN , , in IN Global NP Finance NP New NP York NP , , Sep NP . SENT 1999 CD . SENT 20 CD L NP . SENT Booth NN . SENT What WP drives VVZ shareholder NN value NN , , presented VVN at IN the DT Federated NP Press NP Creating VVG Shareholder NN Value NP Conference NP , , University NP of IN Toronto NP , , 28 CD Oct NP . SENT 1998 CD . SENT 21 CD Financial NP Times NP London NP , , 10 CD Aug NN . SENT 1998 CD . SENT 22 CD K NP . SENT Smith NP . SENT The DT revenue NN chase NN , , in IN Banking NP Strategies NP Chicago NP , , 1999 CD . SENT 23 CD A NP . SENT Bolger NP . SENT Strange JJ alliances NNS spawn VV huge JJ deals NNS , , in IN Financial NP Times NP London NP , , 26 CD May NP 2000 CD . SENT 24 CD ILO NP . SENT Social JJ effects NNS of IN structural JJ change NN in IN banking NN , , Tripartite JJ Meeting VVG on IN the DT Social NP Effects NNS of IN Structural NP Change NP in IN Banking NP , , Geneva NP , , 1993 CD . SENT 25 CD G NP . SENT A DT . SENT Hanweck NP and CC B NP . SENT Shull NP . SENT The DT bank NN merger NN movement NN . SENT Efficiency NN , , stability NN and CC competitive JJ policy NN concerns NNS , , in IN Antitrust NP Bulletin NP New NP York NP , , 1999 CD . SENT 26 CD European JJ Commission NP . SENT Financial JJ services NNS . SENT Implementing VVG the DT framework NN for IN financial JJ markets NNS , , action NN plan NN , , Communication NP of IN the DT Commission NP COM NN 1999 CD 232 CD . SENT 27 CD Section NN 6 CD of IN Act NP No NP . SENT 287 CD of IN 10 CD October NP 1990 CD . SENT Norme NP per FW la FW tutela NP della NP concorrenza NP e SYM del FW mercato NP standards NNS to TO protect VV the DT market NN and CC competition NN . SENT 28 CD WTO NP . SENT Trade NN and CC competition NN policy NN in IN Annual JJ Report NP 1997 CD , , Chap NN . SENT 4 LS , , Vol NP . SENT 1 CD Geneva NP 1997 CD . SENT 29 CD New NP media NNS , , new JJ rules NNS , , in IN Financial NP Times NP London NP , , 4 CD July NP 2000 CD . SENT 30 CD M NP . SENT Peterson NP . SENT Europe NP s PP New NP Fusion NN in IN Investment NP Dealers NPS Digest NP New NP York NP , , 27 CD Mar NP . SENT 2000 CD . SENT 31 CD ibid NN . SENT 32 CD F NN . SENT Rwambali NP . SENT NBC NP to TO declare VV redundancies NNS , , in IN The DT EastAfrican NP Kenya NP , , The DT Nation NP Group NP , , 22 CD May NP 2000 CD . SENT 33 CD Jeune NP Afrique NN L NP intelligent JJ Paris NP , , May NP 2000 CD , , No RB . SENT 2054 CD , , p NN . SENT 65 CD and CC p NN . SENT 92 CD . SENT 34 CD ILO NP . SENT Social JJ effects NNS of IN structural JJ change NN in IN banking NN Geneva NP , , doc NN . SENT TMB NP 1993 CD , , p NN . SENT 22 CD . SENT 35 CD OECD NP . SENT Highlights NNS of IN recent JJ trends NNS in IN financial JJ markets NNS , , in IN Financial NP Market NP Trends NNS Paris NP , , No UH . SENT 76 CD , , July NP 2000 CD . SENT 36 CD ILO NP . SENT Progress NN report NN on IN the DT country NN studies NNS on IN the DT social JJ impact NN of IN globalization NN Geneva NP , , doc NN . SENT GB NP . SENT 274 CD WP NP SDL NP 2 CD , , 1999 CD , , p NN . SENT 16 CD . SENT 37 CD G NP . SENT Graham NP . SENT An DT uncertain JJ footing NN , , in IN Financial NP Times NP London NP , , 10 CD Jan NP . SENT 2000 CD . SENT 38 CD European JJ Industrial NP Relations NPS Review NP London NP , , No UH . SENT 293 CD , , p NN . SENT 8 CD and CC No RB . SENT 316 CD , , p NN . SENT 7 CD . SENT 39 CD The NP Economist NP London NP , , 2 CD Sep NN . SENT 2000 CD . SENT 40 CD Article NP L NP . SENT 122 CD 12 CD of IN the DT French JJ Labour NN Code NP as RB amended VVD on IN 28 CD Jan NP . SENT 1981 CD . SENT 41 CD A NP . SENT Leyshon NP . SENT Financial JJ services NNS mergers NNS and CC acquisitions NNS . SENT Consumer NN impacts NNS , , report NN submitted VVD to TO UNI NN Europa NP 2000 CD . SENT 42 CD The NP McKinsey NP Quarterly JJ New NP York NP , , 1999 CD , , No RB . SENT 3 LS , , pp NP . SENT 26 CD 35 CD . SENT 43 CD S NP . SENT English NP . SENT Job NN losses NNS take VVP toll NN on IN UK NP sales NNS at IN Prudential NP , , in IN Electronic NP Telegraph NP , , 28 CD July NP 2000 CD . SENT 44 CD K NP . SENT Janacek NP and CC V NN . SENT Tomsik NP . SENT Development NN of IN the DT banking NN and CC financial JJ institutions NNS in IN the DT Czech NP Republic NP , , study NN for IN the DT ILO NP , , 2000 CD . SENT 45 CD A NP . SENT Berger NP , , R NP . SENT Demsetz NP and CC P NN . SENT Strahan NP . SENT The DT consolidation NN of IN the DT financial JJ services NNS industry NN , , in IN Journal NP of IN Banking NP Finance NP Amsterdam NP , , Elsevier NP , , No UH . SENT 23 CD , , 1999 CD , , pp NP . SENT 138 CD and CC 141 CD . SENT 46 CD ILO NP . SENT Social JJ effects NNS of IN structural JJ change NN in IN banking NN Geneva NP , , doc NN . SENT TMB NP 1993 CD , , p NN . SENT 22 CD . SENT 47 CD ILO NP . SENT Training NN for IN employment NN . SENT Social JJ inclusion NN , , productivity NN and CC youth NN employment NN , , Report NP V NN , , International NP Labour NN Conference NP , , 88 CD th NN Session NP , , Geneva NP , , 2000 CD . SENT 48 CD Study NN prepared VVN by IN P NN . SENT Dungan NP of IN the DT University NP of IN Toronto NP s PP Institute NP for IN Policy NP Analysis NP , , for IN the DT Canadian NP Bankers NPS Association NP , , 1997 CD . SENT 49 CD S NP . SENT A DT . SENT Rhoades NP . SENT The DT efficiency NN effects NNS of IN bank NN mergers NNS . SENT An DT overview NN of IN case NN studies NNS of IN nine CD mergers NNS , , in IN Journal NP of IN Banking NP and CC Finance NP , , No UH . SENT 22 CD 1998 CD , , pp NP . SENT 273 CD 291 CD Amsterdam NP , , Elsevier NP . SENT 50 CD E NN . SENT Blaustein NP and CC M NP . SENT Dressen NP . SENT Recherche NP de FW la FW productivit NN et CC rentabilit NN dans NNS le DT secteur NP bancaire NP . SENT Th NN ories NNS , , pratiques NNS et CC cons NNS quences NNS sur NP la FW gestion NN des FW resources NNS humaines NNS France NP et CC Etats NP Unis NNS , , Sectoral JJ Activities NNS Programme NN , , SAP VV 4 CD . SENT 38 CD WP NP . SENT 96 CD Geneva NP , , ILO NP , , 1995 CD , , p NN . SENT 31 CD . SENT 51 CD The NP Economist NP London NP , , 26 CD Aug NN . SENT 2000 CD . SENT 52 CD Agreement NN on IN the DT job NN reduction NN process NN in IN connection NN with IN the DT merger NN of IN SBS NP and CC UBS NP signed VVD in IN Basel NP and CC Zurich NP on IN 30 CD Jan NP . SENT 1998 CD . SENT 53 CD Study NN prepared VVN by IN P NN . SENT Dungan NP of IN the DT University NP of IN Toronto NP s PP Institute NP for IN Policy NP Analysis NP for IN the DT Canadian NP Bankers NPS Association NP , , 1997 CD . SENT 54 CD Financial NP Times NP London NP , , 8 CD May NP 2000 CD . SENT 55 CD J NP . SENT Laufer NP . SENT Egalit NP des NP chances NNS entre NN les FW homes NNS et NP les FW femmes NNS des NP categories NNS cadres NNS et CC professionnelles NNS Etude JJ comparative JJ concernant NN quatre NN pays VVZ europ NN ens NNS . SENT Belgique NP , , Danemark NP , , France NP et NP Pays VVZ Bas NP , , Sectoral JJ Activities NNS Programme NN , , SAP VV 4 CD . SENT 39 CD WP NP . SENT 102 CD Geneva NP , , ILO NP , , 1997 CD , , p NN . SENT 16 CD . SENT 56 CD G NP . SENT Collins NP and CC J NP . SENT Wickham NP . SENT Experiencing VVG mergers NNS . SENT A DT woman NN s PP eye NN view NN , , paper NN presented VVD at IN the DT 18 CD th NN Annual JJ Labour NN Process NN , , 25 CD 27 CD April NP 2000 CD , , University NP of IN Strathclyde NP . SENT 57 CD ibid NN . SENT 58 CD S NP . SENT Quack NN and CC B NP . SENT Hanck NP . SENT Women NNS in IN Decision NN Making VVG in IN finance NN , , paper NN prepared VVN in IN cooperation NN withthe NNS European JJ Network NP Women NNS in IN decision NN making VVG , , for IN use NN by IN the DT European NP Commission NP , , 1997 CD . SENT 59 CD United NP States NPS Department NP of IN Labor NP , , Bureau NP of IN Labor NP Statistics NPS . SENT Employment NN and CC earnings NNS January NP 1996 CD , , in IN ILO NP . SENT Breaking VVG through IN the DT glass NN ceiling NN . SENT Women NNS in IN management NN , , Sectoral JJ Activities NNS Programme NN , , TMWM NP 1997 CD Geneva NP 1997 CD , , p NN . SENT 21 CD . SENT 60 CD J NP . SENT Tienari NP . SENT Through IN the DT ranks NNS slowly RB , , studies NNS on IN organizational JJ reforms NNS and CC gender NN in IN banking NN Helsinki NP School NP of IN Economics NP and CC Business NP Administration NP , , 1999 CD . SENT 61 CD ibid NN . SENT 62 CD M NP . SENT Regina NP , , J NP . SENT Kitay NP and CC M NP . SENT Baethge NP eds NPS . SENT . SENT From IN tellers NNS to TO sellers NNS . SENT Changing VVG employment NN relations NNS in IN banks NNS Cambridge NP , , Massachusetts NP , , the DT MIT NP Press NP , , 1999 CD , , p NN . SENT 3 LS . SENT 63 CD ibid NN . SENT 64 CD ibid NN . SENT 65 CD CEDEFOP NP . SENT The DT impact NN of IN new JJ technologies NNS in IN occupational JJ profiles NNS in IN the DT banking NN sector NN , , case NN studies NNS in IN Luxembourg NP , , the DT Netherlands NP , , the DT United NP Kingdom NP and CC France NP European NP Centre NP for IN the DT Development NP of IN Vocational JJ Training NP , , Thessaloniki NP , , 1998 CD , , p NN . SENT 10 CD . SENT 66 CD T NN . SENT Beck NP Joint NP National NP Secretary NP , , Finance NP Sector NN Union NP of IN Australia NP . SENT Identifying VVG and CC evaluating VVG potential JJ and CC rewarding JJ performance NN . SENT A DT union NN perspective NN . SENT 67 CD ILO NP . SENT Training NN for IN employment NN . SENT Social JJ inclusion NN , , productivity NN and CC youth NN employment NN , , Report NP V NN , , International NP Labour NN Conference NP , , 88 CD th NN Session NP , , Geneva NP , , 2000 CD . SENT 68 CD ibid NN . SENT 69 CD KPMG NP . SENT Unlocking VVG shareholder NN value NN . SENT The DT keys NNS to TO success NN , , op NN . SENT cit NNS . SENT 70 CD C NP . SENT Evans NP Klock NP et CC al NP . SENT . SENT Worker NN displacement NN . SENT Public JJ policy NN and CC labour NN management NN initiatives NNS in IN selected JJ OECD NP countries NNS , , Employment NP and CC Training NP Papers NP , , 24 CD Geneva NP , , ILO NP , , 1998 CD . SENT 71 CD The DT definition NN of IN economic JJ , , technological JJ and CC similar JJ reasons NNS varies VVZ depending VVG on IN the DT country NN concerned VVN and CC commonly RB takes VVZ into IN account NN situations NNS such JJ as IN plant NN closures NNS , , suspensions NNS , , production NN difficulties NNS or CC cut NN backs NNS , , phasing VVG out RP of IN industrial JJ processes NNS , , changes NNS in IN procedures NNS or CC jobs NNS , , readjustments NNS and CC restructuring NN , , which WDT are VBP all DT reasons NNS unrelated JJ to TO the DT employees NNS themselves PP . SENT 72 CD G NP . SENT Collins NP and CC J NP . SENT Wickham NP , , op NN . SENT cit NNS . SENT 73 CD ILO NP . SENT Training NN for IN employment NN . SENT Social JJ inclusion NN , , productivity NN and CC youth NN employment NN , , Report NP V NN , , International NP Labour NN Conference NP , , 88 CD th NN Session NP , , Geneva NP , , 2000 CD , , p NN . SENT 9 CD . SENT 74 CD S NP . SENT Inove NP . SENT Japanese JJ trade NN unions NNS and CC their PP$ future NN . SENT Opportunities NNS and CC challenges NNS in IN an DT era NN of IN globalization NN Geneva NP , , ILO NP , , International NP Institute NP for IN Labour NN Studies NNS , , 1999 CD . SENT 75 CD M NP . SENT Regina NP , , J NP . SENT Kitay NP and CC M NP . SENT Baethge NP . SENT From IN tellers NNS to TO sellers NNS , , op NN . SENT cit NNS . SENT , , p NN . SENT 19 CD . SENT 76 CD ibid NN . SENT 77 CD P NN . SENT A DT . SENT Gaughan NP . SENT Mergers NNS , , Acquisitions NNS and CC Corporate JJ Restructuring NN , , second JJ edition NN New NP York NP , , John NP Wiley NP and CC Sons NP , , 1999 CD . SENT 78 CD J NP . SENT Tienari NP , , op NN . SENT cit NNS . SENT 79 CD ILO NP . SENT Decent JJ work NN , , op NN . SENT cit NNS . SENT , , p NN . SENT 39 CD . SENT 80 CD Directive NN 94 CD 45 CD EC NP , , Sep NP . SENT 1994 CD . SENT 81 CD S NP . SENT Deery NP and CC R NP . SENT Iverson NP . SENT Intercedents NNS and CC consequences NNS of IN dual JJ and CC unilateral JJ commitment NN . SENT A DT longitudinal JJ study NN University NP of IN Melbourne NP , , 1997 CD . SENT 82 CD KPMG NP . SENT Merger NN and CC acquisition NN integration NN . SENT A DT business NN guide NN London NP , , 2000 CD . SENT Updated VVN by IN AV NP . SENT Approved VVN by IN JS NP CDH NP . SENT Last JJ update NN . SENT 24 CD February NP 2003 CD . SENT For IN further JJR information NN , , please VV contact VV the DT Sectoral JJ Activities NNS Department NP SECTOR NN at IN Tel NP . SENT 41 CD . SENT 22 CD . SENT 799 CD . SENT 7513 CD , , Fax NP . SENT 41 CD . SENT 22 CD . SENT 799 CD . SENT 7296 CD or CC email NP . SENT sector NN ilo NP . SENT org NP SECTOR NN . SENT Top JJ SECTOR NN Home NN About IN Sector NN Sectors NNS Meetings NNS Publications NP Contact NP us PP What's NP new JJ ILO NP Home NP ILO NP Sitemap NP ILO NP Search NP About IN the DT ILO NP Contact NN Copyright NP 1996 CD 2004 CD International NP Labour NN Organization NP ILO NP Disclaimer NN