Commercial Banks Evaluation Method In Merger And Acquisition By The Financial Enterprises

At present, China economy is in the stage of throes, commercial banks as an important component of the national economy, will play a decisive role in China’s current and future economic development. In order to meet the needs of economic development, commercial banks M&A will increase gradually. In the Future, commercial banks will face fierce competition.The marketization process of China’s interest rate will accelerate, it will intensify competition in that non-bank financial institutions involve in the field of commercial bank credit, and the homogenization problems is very serious.Because of the rapid expansion of new business to the intermediate business and the intensifying competition between companies, the traditional banking business will decrease, the profit space of commercial bank will cut down. Merger and acquisition can help commercial banks to achieve the scale of expansion, improve the effect on economy of scale management in commercial banks, will further consolidate and expand the existing market share of the buyer. Along with the economic development, the optimization and upgrading of industrial, commercial bank’s M&A will be more active for the economy, the entities service, and the commercial banks their own development needs.The commercial bank’s M&A involved the commercial bank’s value assess and value method.Because of commercial banks’ assets and liabilities structure, external supervision and management mechanism, there are distinct characteristics in the commercial bank value assessment in mergers and acquisitions. As the particularity of commercial bank, it can not copy the evaluation theory and the model of general enterprises. It is necessary to combine the existing theories, analyze the characteristics of commercial banks, operating mechanism of commercial banks and value creation model, summarize the key factors affecting the value of commercial banks.It improved the commercial bank value assessment method system,including methods application, parameter selection. The theory of the commercial bank value analysis can reveal the operation the essence of commercial bank, and lay the foundation for the reconstruction to increase the value of commercial banks.It lay a solid foundation for the final merger price decision, as the study on the evaluation of the commercial banks in mergers and acquisitions.In this paper, it combine the evaluation of enterprise value and commercial bank M&A, based on the service evaluation practice, it also studied on the application of evaluation method and conditions of use, and make the assessment more targeted and operability, improved the existing commercial bank value assessment system. In addition, it contributed to the M&A party to establish business goal, as study on Evaluation of financial mergers and acquisitions in the commercial bank value, it provided support for strategic planning and decision making. It’s more convenient for regulators to bank merger regulation.In this paper, there are six chapters to study the evaluation of financial mergers and acquisitions in the commercial bank value. The first chapter is the introduction, the background and significance of topics are discussed in this paper, it summarizes and reviews the related studies at domestic and abroad, this paper puts forward innovation, deficiency and a scheme of this paper. The second chapter is selecting assessment methods of the commercial bank, it discussed the choice of the evaluation method by different types of M&A and value types respectively. The third chapter is the research of commercial bank valuing in income approach, it discussed the income approach theory basis and characteristics,Analyzing the role of commercial bank’s value creation path and impact factors of its value,studied the target commercial banks valuing of income approach and the income approach combined with the real option method. The fourth chapter is the research of commercial bank valuing in market approach, it discussed the market approach theory basis and characteristics,discussed the financial and non-financial factors impact on the value of commercial banks and the mode of action, it studied the target commercial banks valuing of market approach. The fifth chapter is the research of commercial bank valuing in cost approach, it discussed the cost approach theory basis and characteristics,it studied the target commercial banks valuing of cost approach. The sixth chapter is is the conclusions, recommendations, it summarized the selecting of commercial bank evaluation methods and the evaluation result, it suggested to improve the commercial bank value assessment method.Through the research, this paper tried to make some innovations: firstly, it discussed the value type of target enterprises selection and evaluation method in M&A of commercial banks.Secondly, it investigated the financial and non financial factors influence on the value of the commercial bank and the mode of action, it studied on the factors influencing the value of commercial banks in quantitative analysis. Lastly, it put forward the existing assessment methods, as for the policy, system, the specific operation and implementation point of view,the commercial banks as the value of the target enterprise evaluation.This paper analyzed the evaluation problem that commercial bank merger and acquisition of Chinese financial enterprises as the target enterprise, due to domestic commercial banks as the acquisition target enterprise limited amount of data, the assessment of commercial bank’s case and related data to obtain a certain degree of difficulty. According to the analysis of only the collected cases and data, it can be generally reflect the overall situation, but may still exist certain deviation with the real situation.