Most of these factors are fairly common in merger and acquisition activity, so in that sense the financial services industry is not unlike other industries. Efficiency improvements are one key driver, increases in market power, diversification of revenue streams and lowering risk are all factors commonly cited in such mergers (Berger, Demsetz & Strahan, 1999)
This is where the central bank comes in to regulate on charges. Retail bank model is one that works on the premise that people have to be empowered to secure funding so as to meet what they expect from business arrangements (Hryckiewicz, 2010)
Banking cannot best operate without a regulator that checks the operations. Businesses need to be streamlined to fit the right procedures that are well defined and fall under the right code of ethics (De Jonghe, 2009)