Study On Adventure And Profit Of Merger And Acquisitions In International Banking Industry

It has been over one hundred years since the first M＆A took place in the later 18th century．Because of political multi—polarization,economic integration and financial globalization,M&A has become a force not to be ignored in the field of international banking industry and has had a much great effect on political situation and economic development of the world in the end of 20th century．Therefore,1n this thesis mainly referred is the 1atest M&A flow of banking industry from the part of adventure and profit．The article is made up of three parts:The first part is on the analysis of history ,characteristic and the theory about the M&A in International Banking Industry．The second part is about the theory and real example findings of adventure and profit of M& A in banking industry．In the last part of the thesis,concerned is the issue of M&A of China banking industry．Here,discussed are the present problems, the significance and probability of M&A．Ⅰ,History, Characteristic and Cause of M& A in International Banking Industry (Ⅰ) Historical Evolution of M& A in International Banking Industry Since from the later nineteenth to later twentieth century ,the west countries, of which USA was representative , have had four tidal waves of M&A. The first tidal waves of M&A(from earlier twentieth century to the thirtieth of the twentieth century ); The second waves of M&A(from the thirtieth to the fortieth of the twentieth century ); The third waves of M&A(from the fiftieth to the eightieth of the twentieth century ); The fourth waves of M&A(from the ninetieth of the twentieth century till now). (Ⅱ) Characteristic of M& A in International Banking Industry Financial Globalization impulses M& A in International Banking Industry at full tilt. The ninetieth of the twentieth century is just the unparalleled period of Financial Globalization's development. This is the backdrop of M& A in International Banking Industry, thus, development of M& A also acclimatizes itself to this backdrop. 1. M& A of many entity in which bank is the principal partIt shows different characteristic, Because of the loose of government control and the changes of administrant rules, that is, at the same time of bank is the principal part in M& A, the cases of conglomeracy M& A appeared. The most representative and successful case of those is the merger between National city Bank of New York and Traveler Group.2. Merger between strong enterprises is the mainstream direction of M& A .For example, after the Merger between Bank of Tokyo,Ltd. and Mitsubishi Bank Ltd, its total assets exceed 700 billion dollars and become the international bank of the assets with leading quantity at that time.3. M& A has extensive range and various ways Not only among developed countries, but also there is merger each other to take place between the developed country and developing country.(Ⅲ) Cause and Theoretic Gist of M& A in International Banking Industry1. Merging can form the competition advantageCome and say , the business bank has incomparable wide markets theoretically. Because of managing the particularities of target, make bank not to be heavy scale and raise large fund currency that get, It is the more extensive to set free the target of currency fund in loan and choose, the heavier incomes that are won.. And, effect of deriving who bank manage, make deposit large times of phenomena expanded, Making the individual bank scale the larger too, the more incomes are. Just because of this, some western countries, still combines again and again under an own and very centralized situation of banking.. Some economists call it the influences of market force and summarize it as " theory of market power" (MARKETPOWER). The key view of this theory is, increasing the scale of company will strengthen the company strength , We can say that this theory expanded the scale for the bank, frequently amalgamated, strengthened competitiveness and offered the basis2. Merging can realize the comprehensive e...