Printer Friendly

PACE OF BANKING INDUSTRY CONSOLIDATION TO INCREASE SAYS CONTINENTAL BANK CHAIRMAN

 PACE OF BANKING INDUSTRY CONSOLIDATION TO INCREASE SAYS
 CONTINENTAL BANK CHAIRMAN
 CHICAGO, April 29 /PRNewswire/ -- The U.S. banking industry has reached a turning point, with earnings showing healthy growth, portfolio problems diminishing and the industry's ongoing restructuring exerting a positive impact, Continental Bank Chairman Thomas C. Theobald told the annual meeting of the Society of American Business Editors and Writers today.
 Theobald said he expects the pace of consolidation in the U.S. banking industry to increase in the near future, fueled in part by greater capital levels resulting from the recovery in bank stock prices. "Since market equilibrium is a long way off, I expect to see some notable deals before the year is through.
 "Banking is in the process of wrestling with many of the same factors that ultimately forced restructuring of the steel, trucking and automobile industries," Theobald said. "Those forces include a familiar foursome -- the pressures of foreign competition, overcapacity, excessive costs and inefficient use of capital.
 "The banking industry is being restructured not by congressional fiat, but by the heavy hand of the marketplace," said Theobald. "The pace of restructuring in the U.S. is far ahead of that in Japan and Europe, where the markets still are relatively protected."
 Theobald added that these changes have positioned the U.S. banking industry to regain its global competitiveness. "I believe we're on the way to recapturing some of the ground we lost to foreign banks," he said. "I'm convinced that as structural changes convert traditionally acceptable capacity into surplus in London or Tokyo, this role reversal will only become more pronounced.
 "Japanese banks are feeling the effects of the free fall in the Japanese stock market, which threatens to wipe out hidden equity gains and deplete their hoards of capital," Theobald said.
 In addition to responding to competitive pressures through mergers of bank holding companies, U.S. banks have narrowed their business focus to concentrate on specific market segments, Theobald said. "Mergers and acquisitions are only the most visible sign of this consolidation," he said. "Less dramatic, but no less important, many banks have been making critical decisions about strategy and scale."
 -0- 4/29/92
 /NOTE TO EDITOR: Continental Bank Corp. is a bank holding company that focuses on meeting the capital and financial management needs of publicly and privately held businesses nationwide. Through its subsidiaries, the company provides business financing, specialized financial and operating services and private banking services. Continental also engages in equity finance and investing, as both principal and arranger, and international trading, for customers and its own account.
 For the full text of Theobald's April 29 remarks to the Society of American Business Editors and Writers, please call contact listed below./
 /CONTACT: William C. Murschel, 312-923-5130, or Edgar P. McDougal, 312-923-5200, both of Continental Bank Corp./
 (CBK) CO: Continental Bank ST: Illinois IN: FIN SU: ECO


LR -- NY057 -- 4412 04/29/92 13:03 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 29, 1992
Words:485
Previous Article:SHELL CANADA REPORTS FIRST QUARTER EARNINGS
Next Article:/ C O R R E C T I O N -- WINTHROP FINANCIAL FILES/
Topics:


Related Articles
Banks poised for consolidation.
THOMAS J. PRITZKER RESIGNS FROM BOARD OF CONTINENTAL BANK
BANKING LEADERS OFFER OUTLOOK FOR 1992
NORTHBAY SAVINGS BANK, CONTINENTAL SAVINGS OF AMERICA SIGN AGREEMENT
CONTINENTAL BANK ANNUAL REPORT: CHAIRMAN PROJECTS EARNINGS REBOUND FOR 1992
CONCORD SELECTED AS ADMINISTRATOR AND DISTRIBUTOR OF NEW MUTUAL FUNDS ADVISED BY CHICAGO-BASED CONTINENTAL BANK
U.S. Market Presents Opportunities for Canadian Financial Services Companies Must Succeed in the U.S., Says Al McNally, Chairman and CEO of Harris...
Merger mania may soon be taking off.
SBI chairman says India needs more big banks.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters