Research On Bank Merger

At present, there has been a distinct tendency towards globalization in the world's economy and a rapid development in the world's financial systems. The trend of bank restructures and mergers has been occurred all over the countries which can accelerate the reasonable flow of capital to meet the scientific and epoch development. Bank mergers is a viable way to reduce or remove risk and to promote operational benefits by forcing the rational flow of capital and pushing forward the diversified ownership of banks. By seizing the opportunities of entering the WTO and borrowing from the successful experience of developed countries' banking restructures, the commercial banks in our country should take the time to make advancements by strengthening the reforms of the property rights system and optimize the reorganization of bank assets under the guidance of the market economy system, improving the comprehensive competitive ability, assisting in the improvement in our country's economy. Presenting substantial evidence and analyzing on the basis of exploring the mergers, experiences and lessons of international banks and domestic banks, this article is presenting the theory and the practical program of the commercial bank restructures in our country. This article states that the market-oriented or the so-called market-impetus merger is the ideal stage, for it is the best way of distributing resources. It also holds on the point that the process of marketable bank M&A should be taken in China. Government should also help perfect the market economy and ensure the equality of market competition. Capital reconstruction and financial holding companies are best solutions to Chinas' banking industry. Bank restructures is the basic solution to reform of state-owned commercial banks and to the efficient reorganization of bank assets.