Market-driven vs. government-driven banking consolidation around the world

Today's processes of globalization, deregulation and development of information technologies in the banking sector of countries around the world lead to increase of bank mergers and acquisitions, thus reducing the total amount of banks in the banking system. At the same time, countries, where financial markets are still devel-oping the banking consolidation is led by regulative authorities with strict directions and plans of reduction of banks' quantity in the banking sector. Thus, the objective of this study is to investigate the differences between banking consolidation driven by the market forces and banking consolidation initiated by regulatory authorities. The research occupies the main theoretical basis of both types of banking consolidation and to-day's overview of the most striking examples of banking consolidation driven by market / government around the world.