Financial institutions in developed countries have undergone a profound structural change in recent years. As a result, banking has become internationalized and competition has intensified within vast and complex markets for a range of financial services. This book reviews these changes. The book analyzes the structural changes in financial markets, their basic causes, their effect on the profitability of commercial banks and their viability in future. It also describes strategies used by banks in dealing with adverse developments, and analyzes the options facing commercial bank management. The book is organized in four main sections: the first presents a survey of the banking systems in seven leading industrialized countries; the second provides a country by country comparison; the third discusses issues relevant to the development of commercial banking; and the fourth examines policy implications.