5th NORDIC-BALTIC CONFERENCE IN REGIONAL SCIENCE
GLOBAL-LOCAL INTERPLAY IN THE BALTIC SEA REGION
Pärnu, Estonia, October 1-4, 1998

Prof. Aleksandras V. Rutkauskas
Dept. of Business and Economics, Tecnical University of Vilnius
Sauletekio Ave. 11, LT-2054, Vilnius, Lithuania
Tel.: 370 2 767919    Fax: 370 2 625100
E-mail: ar@vv.vtu.lt

1. Increasing proliferation of new financial services offered to the public with increased product development and research activity and heavy emphases of sales technique, including sales by satellite and video conference (Peter S. Rose. Money and Capital Markets. 3^rd edition.)

2. Increased attention by financial institutions and financial managers to the control of operating costs and to improving the productivity of labor and other resources needed to produce financial services.

3. Increasing consolidation, through mergers and acquisitions, of the structure of key financial service industries - banking, insurance, security brokerage, investment banking, pension plans - with larger financial institutions continuing to emerge with the broadening of markets and the need for greater efficiency.

4. Growing competition in the production and distribution of all financial services and more financial institutions establish interstate offices and sell their services in broader regional, national and international markets.

5. Increasing nationalization and internationalization of financial markets and services with commercial, consumer, mortgage and agricultural loans developing broader and broader resale markets, providing new sources of liquidity for lenders of funds.

6. Further deregulation of the financial sector of the economy with the private marketplace playing a greater role I determining the type and character of services offered.

7. Increased risk of failure for individual institutions due to greater competition, service innovation, cost pressures and technological change.