The future deve1opment, of retail banking and the structural changes that are occurring, and are expected to occur after 1992, are two issues which dominate current discussions concerning banking in Europe. Both issues are inter-related and, of course, both have imp1ications for bank regu1ation. In an attempt to contribute to the debate, this paper presents survey data obtained from retail banks in thirteen European countries'and highlights differences between banks in EC countries with those in EFTA countries. We are also concerned with the regulatory implications of the data and, having discussed why banks should be regu1ated at all, conclude that banks should be regulated on a functional basis, and that banks should not be permitted to engage in non-banking activities, nor non-banks permitted to undertake banking business.