Elementary Analysis On EU Banking Merges And Acquisitions

With the development of financial globalization and integration of economy, a new round of merges and acquisitions(M&A) start up with banks as the principal part of the activities since middle of 1990s. Numbers and dimensions of banks participating in M&A both perpetual increased not only in U.S.A. and Japan but also in the EU. EU specially kept ahead in the world during this global M&A. EU banks M&A began from beginning of 1990s, and reaching the climax in 1998. EU banks M&A processed in particular time background along with course of EU financial globalization. Thus, both EU and members financial authorities tried to accelerate banks M&A through formulating measures and making assistant policies. In addition, during this time, the extension of EU banks M&A were not confined domestic nation, and extending to other countries, which constituted cross-border M&A. In this condition, many large international banks emerged. At the same time, banks consolidated with security company and insurance company, which leaded to the emergence of the conglomerate in EU.With the development of EU banks M&A, EU financial authorities had to face a problem that was how did the financial supervisory authorities supervise banks activities. Under the condition of emergence of large banks, conglomerates and improved relation among banks, it is necessary to reform existing financial supervisory mechanism.So, this paper will discuss the EU banks M&A in above both points. The paper is divided into four chapters. First chapter mainly discuss basis problems about banks M&A comprising background and basis theories of banks M&A. Second chapter dissertates the characteristic of banks M&A and EU banks status quo. In addition, it also refers to the obstacles to further integration. Third chapter is composed of EU and member level financial supervisory reform and the reference for China. Last chapter discusses the banks M&A and impose positive and negative affects on banks.It is necessary to point out that EU we discuss in the paper only comprises intrinsic 15 member states.