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Gold/Mining/Energy : Potential Bank Mergers Disapproval -- Ignore unavailable to you. Want to Upgrade?

To: Famularo who wrote (1)	7/9/1998 8:12:00 PM
From: Ming	Read Replies (1) \| Respond to of 4

yes, but Canadian banks won't die easily. They're too big to become quick road kill. The situation is somewhat akin to WalMart's entry into Canada 4 years ago and the deregulation of Long-distance markets 5 years ago. However, they do face competition from foreign banks like Wells Fargo, which are using computer technology to target the most profitable segments of the market for "harvesting". They enjoy the advantage of not incurring the capital cost of setting up branches and maintaining an administrative presence here. Companies like GE capital and credit card "category killer" MBNA will also eat into their profits. This is great for Canadians. Finally, they'll have access to competitive services, instead of being forced to deal with the "Big 5 cartel". In the long run, banks might actually benefit from competition. BCE did not suffer that much from losing its monopoly on LD, though Bell's profits took a hit, and it had to axe a lot of employees.