Research On The Strategy Of Bank Merger And Acquisition In China

From the 90s of the 20th century, the global banking field has been experiencing great reforms in regulation, organization, operation mode, and competition structure, while the development of the world economy is getting more dependent of globalization, freedom, and information. This vagues the distinctions among financial enterprises, banking, security, insurance, and trust. In this process, M&A of variety of banks plays a very important role. It is this mergence that motivates the fast development of international banking and financial field.M&A meanings two ways: merger and acquisition. In the ownership trade process, the reforms take place in ownership system, regulation structure, management system, and arrangement system. The overall goal is this: more motive power internally and more capable of adapting to new environment externally. So they can make more profits and get more powerful in competition. This process is not so simple as "adding up". It should be reformed structurally and become a whole structural system of strong competition ability. From this point of view, M&A is kind of strategic adjustment.M&A among banks becomes more and more popular, and it should follow some rules. The functions of banks decide this tendency. The expansion of businesses demands this adjustment and the aim of banks making more profits also can't do without it.M&A does good to banks themselves, relevant countries and the international society. But it also encounters some problems. The positive points are as follows: some banks expand efficiently, and they cooperate perfectly. At the same time, as the expansion of service boarder, the can offer better service. They will face less risk and realize the mutual complementary effects between the amount of circulating currency and investment opportunity. In addition, the transmission of capital market value and taxes also benefit the banking field. The negative points lie in the follows: as this process goes deeply and widely, monopoly appears. It will lead to the unreasonable allocation of capital and negative influence to the customers. So, large banks will go bankrupt hence rescue becomes difficult, and this may impact the global finance market. This process is also a new challenge to supervision work. Many people will go unemployment, and this will produce problems of employment and social stability.Banking is a field of many risks. Many risks will come out from different aspects in the merging process. To the environmental risks, we can control through the further study of laws, policies and the whole economic environment. To the operation risks, we can control by using the quantification method of financial engineering. To the risks of harmonization, we should depend on effective management and good coordination so that they can get to the common expectations and avoid contradictions.M&A among banks in China from the end of the last century was a typical political arrangement. It aimed at easing crisis with governmental arrangements, which took no consideration of the demands of merging banks. It was a method used by the government to deal with financial crises and risks. From our present banking market structure and performance, we can see two things. On one hand, the commercial banks in China develop unbalanced with features of typical monopolization and highly centralization. As the fast development of economic structure adjustment and hotter-getting competition, the optimization of banking structure is inevitable. On the other hand, though the competition ability of China's banks in the international banks has been obviously strengthened, the rate between centralization and repayment is quite out of proportion, large in size but low in profit. So efficiency becomes the key point, and efficiency needs the improvement of market structure and adjustment of banking field. Considering our current situation, we don't think is feasible to begin M&A on a large scale. What we should do first is to solve some problems existing in the system to make...