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4 Comparing Europe and the United States JRG DECRESSIN AND BEATA KUDELAThis chapter analyzes differences in efficiency and competition between EU and U.S. banks and puts these differences in the context of historical developments and market structures.1 Financial markets in the United States offer a natural benchmark because they are the only markets that match or exceed those of the European Union in both size and level of development and because banking markets were highly fragmented in...
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