Strategic Management of Nordea Bank: Regulation and Integration of the European Banking Sector 1980 -2013

Abstract

The European banking sector has evolved from a conglomeration of segregated national banks into a very complex cross-border trading unit. The focus of this paper is on
integration of the banking sector and the sector’s response to the most recent wave of regulation imposed after the Eurozone financial crisis of 2009; in particular, we
consider Nordea as a case study. Nordea itself is a testament to the integration of this sector—formed from the merger of a number of Scandinavian banks. The paper first
reviews the history of the integration of the European banking sector beginning from 1980 up until present day. We then review how these regulatory changes have affected
Nordea, and offer up our suggestions on how the company should strategically manage the more stringent capital requirements and an increasingly strict regulatory framework.
In general, our paper concludes that it is crucial for a bank to incorporate regulatory management into the strategic and operational functions of the firm in order to be
successful in the ever-changing European financial markets. We analyze this conclusion in light of Nordea’s own objective of serving as a stable and relationship-based company,
and consider how their management and response to these regulations can help them create a competitive edge.