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In 1992 Banque Nationale de Paris (BNP) and Dresdner Bank entered into a strategic alliance whereby each bank would have access to the other bank''s French and German branch networks to service their respective customers'' overseas needs and would enter into new country operations through specific joint ventures initially in Eastern Europe. This case broadly reviews this strategic alliance through the period 1992 to 1995. The information contained in the case includes both ''soft'' data - quotations from managers in the two banks about the post establishment working of the alliance, and ''hard'' data - financial and industry information. The case develops from the alliance to individual banks to the wider national environment and considers two banks which are in the top two national banks of France and Germany. The case views various managers'' responses to the alliance and concludes with the Chairman of BNP considering the way forward.