Abstract
In the area of financial services, achieving an integrated market for banks and financial conglomerates is a core component of the European policy. The banking market seems to remain mainly national, but the free movement of capital, the adoption of the euro and the progressive harmonization of rules impel banks to achieve a critical size not only in their domestic market but also at the European level. If this expected movement of consolidation was actually limited until 2003, the realization of major mergers and acquisitions since 2004, permitted by Europe's economic recovery, tends to prove that consolidation has now really begun. While some banks like BNP-Paribas decided to take up the challenge of achieving a European critical size, Société Générale, one of the oldest banks of France, still prefers standing alone, developing a strong organic growth and making only very targeted acquisitions. In this document, we will have a sneak peek into the banking consolidation in Europe. In the latter part, we will focus on the development strategy of Société Générale and in particular on the difference between its detail banking and financial services international strategies. Finally, we will conclude about the risk of Société Générale's "standing alone" strategy in the long run.
