Research on the Issue of Bank Mergers and Acquisitions
|School||Jiangxi University of Finance|
|Keywords||Bank mergers and acquisitions Economies of scale Economies of scope|
Along with the accelerated process of economic globalization and financial liberalization, a new round of banking sector in the world-wide wave of mergers and acquisitions has been surging. Born in the wave of a new round of bank mergers and acquisitions group of ultra-large-scale banks, have a certain impact on the world financial structure, especially in the financial sector in developing countries. China's accession to the WTO, the domestic banking sector unprecedented opportunities while also facing more severe challenges. China will be gradually relaxed or Cancel limitations of foreign-funded financial institutions, China's financial industry will inevitably be the impact of cross-border mergers and acquisitions in international banking, in this case, China's banking industry to enhance their competitive strength of the effective ways is to formed through the acquisition of economies of scale and economies of scope to improve the strength to compete with big international banks. China's financial industry is in a system transition, opening wider to the outside world, enhance the market competitiveness of the critical period. With the deepening of reform and development, but also started the key mergers and acquisitions of financial institutions. Guangdong Development Bank in 1996, the acquisition of Bank of Trust and Investment Corporation, China Development Bank in 1998, 1999, China Everbright Bank, China Investment Bank mergers, opened the curtain of the domestic banking sector mergers and acquisitions. However, China's banking industry should see there are some problems in the development process, these problems an obstacle to the merger and reorganization carried out, but also put forward new demands. Therefore, China's banking industry has reached a critical crossroads, both can not be content with the tide on the shore, can not blindly follow the crowd, at the same time learn from the experience of the international banking industry mergers and acquisitions, but also requires a combination of their own development, to make rational decisions . This paper attempts to provide an alternative route for China's banking industry mergers and acquisitions ideas. In this paper, the Marxist materialist dialectics, history and logic, drawing on the Western system of economic theory can be used for our viewpoint and method, Banking M \u0026 A in effect a detailed analysis, combined with the international banking M \u0026 A wave the characteristics and the status quo of China's banking industry, and then put forward the initial idea of ??China's banking industry mergers and acquisitions and risk prevention measures recommended. The full text is divided into five parts. Introduction section describes the background and significance of the writing of this article, and defines the concept of bank mergers and acquisitions, mergers, mergers, acquisitions, research methods and ideas of this article explained. The second chapter is the theoretical basis for the research topic, the representation theory of bank mergers and acquisitions: transaction cost theory, agency problems and management theory, diversification theory, these theories have been reviewed. Transaction cost theory has some applicability in the interpretation of vertical mergers, explained agency problems and management theory from the point of view of the agent of the Company on mergers and acquisitions, diversification theory can be used to explain the mixed mergers and acquisitions. The second chapter is banking mergers and acquisitions motives and effects analysis, the first analysis of the banking industry mergers and acquisitions external motivation and internal motivation, external action are: the development of economic globalization and multinational companies as well as economic regionalization, financial liberalization and government deregulation; internal motivation: to break through the barriers to entry, expand business boundaries; to expand market forces, increase market share; take advantage of the expected benefits, earnings illusion \Followed by analysis of the effects of mergers and acquisitions in the banking sector, pointed out that the banking industry mergers and acquisitions both positive effect, negative effect, positive effect, including the multiplier effect and the diversion effect, a multiplier effect on the performance of the economies of scale and economies of scope, the transfer effect the performance of the capital market value of the transfer and the transfer of tax; negative effect is mainly manifested in: excessive monopoly may damage the interests of consumers, ultra-large-scale operational risks, financial regulation more difficult and substantial layoffs. The fourth chapter is the international banking M \u0026 A wave and the revelation of the Banking Industry in China, pointed out that the international banking industry, especially in developing countries, the financial sector in the review of a new round of international banking M \u0026 A wave, analyzes new features : bank mergers and acquisitions wave of surging changing the M \u0026 A Bank of scale and international rankings, but also the challenges faced by the financial sector in developing countries and pressure increase in acute brush, the financial sector in developing countries must accelerate the pace of internal integration, appropriate scale adjustments to enhance the international competitiveness of domestic banks, adding to the wave of the global financial; finally led to the revelation of China's banking industry, Banking appropriate scale, mixed or separate operation mode problem, M \u0026 A efficiency issues. The fifth chapter is the initial ideas of China's banking industry mergers and acquisitions and risk prevention. This chapter start from the analysis of the status quo of China's banking industry, pointed out that the significance of the mergers and acquisitions of China's banking industry, and then put forward the initial ideas of China's banking industry mergers and acquisitions, and some preventive measures recommended for the risk in the banking sector M \u0026 A process initially proposed for the realization of after the merger of the economies of scale and economies of scope to provide an idea. This article is on the basis of previous studies, a new perspective of the banking sector M \u0026 A Further Discussion of the deep-seated, the picture also argued that China's banking industry mergers and acquisitions to provide a practical idea. The innovation of this paper is to: First, China's banking industry mergers and acquisitions initial ideas: to carry out strategic alliances with commercial banks, four state-owned banks to speed up the pace of internal integration into the mainstream, mergers and acquisitions between the emerging small and medium-sized commercial banks to pave the way to Banking, mergers and acquisitions between banking and non-banking horn, conditions are ripe banks can gradually carry out mergers and acquisitions. The second is to point out the risk of China's banking industry mergers and acquisitions and initial proposed precautions: the establishment of the professional market intermediaries, improve China's M \u0026 A legal and institutional system, right to play the role of the government in the mergers and acquisitions, and give full play to the capital markets in bank mergers and acquisitions the positive role and focus on the integration of the bank after the merger to achieve innovative practice on the basis of theoretical analysis in this article.