The regulation of "network industries" has emerged as a key issue on the European policy agenda. The "Monitoring European Deregulation" (MED) series was launched by CEPR and SNS in 1997 and features new, policy-oriented research on the liberalization of European markets for major network industries (previous reports have focused on telecommunications and electricity). Addressed to a wide audience of both academics and European decisionmakers in the private sector and policy communities at both the national and EU level, this report - which focuses on the deregulation of the European banking system - should play an important role in influencing thinking on these issues and contributing to the policy debate.