Study On Merger & Acquisition Of China's City Commercial Bank

China's city commercial banks are established on the basis of the financial system through the formation of a new type of local financial institutions. After development and efforts of ten years, it has developed into the third echelon bank only after state-controlled Bank of China and the national joint-stock banks. China's city commercial banks are widely distributed, large number, having their own characteristics, and its development is highly seriously unbalanced polarization. The city commercial banks who have capital strength, superior operating efficiency are exploring a reasonable path of expansion of the scale. Non-core city commercial banks are facing to the risk of being marginalized, where will backward management and operation of inefficient city commercial banks go? Bank mergers and acquisitions can provide a more appropriate path to further growth in the development for various levels of city commercial banks.This article firstly describes research background and significance of the paper briefly, domestic and international banking Merger&Acquisition literature reviews are briefly summarized. Then, do a analysis and summary evaluation to the theory used in this study process. Then, review the city commercial banks'three development stages simply, summarize the current stage of China's city commercial banks in the process of merger and reorganization of several commonly used methods, and point out some problems. Subsequently, use financial ratios method of merger and reorganization of city commercial bank performance of the empirical analysis, the results of development, after mergers and acquisitions the safety, liquidity, profitability and development of all aspects are better than before. Finally, China's city commercial banks have many problems in the merger and reorganization in the corresponding policy recommendations, hoping to give a theoretical guidance to their practice.