A Study On The Motive And Strategy Of The M&A Of China's Stock-holding Commercial Banks

Banks, as special service enterprises, have been part of the last five large-scale enterprises M&A waves for over one hundred years, and eventually become the key role. With the adjustment of the global economic structure and the development of economic globalization and integration, banks, as the core of the economies, have used the M&A as the main development strategy for a long time. After China's entry into WTO, the bank industry not only faces good opportunities but also great challenges. Stock holding commercial banks, as the new-born force, find themselves in a more open and competitive situation both at home and abroad. In this changing environment, stock holding commercial banks have to take the development strategy seriously. And undoubtedly, M&A is the best choice for commercial banks to have high-quality and fast development.This paper takes the motive and strategy of the M&A of China's stock-holding commercial banks as its theme, and makes targeted study on the motive and strategic plans of the M&A of China's stock-holding commercial banks according to the developing levels of the stock-holding commercial banks and the M&A in China's banking industry. This paper analyzes the motives of the further M&A of China's stock-holding commercial banks and brings about the policy recommendations and strategic idea accordingly, after defining relative conceptions on the banking M&A, summarizing the theories on the motives of banking M&A, analyzing the history, motive and performance of the past M&A of the stock-holding commercial banks. According to the above research frame, this paper is consisted of five chapters and each chapter goes roughly as follows:Chapter I introduces the significance of the study the current situation of the study on the M&A of China's stock-holding commercial banks the research frame and research methods used in this paper.Chapter II gives the basic concepts of the banking M&A such as the definitions type and theoretical basis, meanwhile presents the characteristics of the international banking M&A history, laying a theoretical groundwork of further discussion.Chapter III summarizes and analyses the theories on the motives of banking M&A, including the efficiency theory which presents that the motive of banking M&A is to achieve synergy; the transaction cost theory ,to reduce transaction cost; Market power theory, to expand market share and the Molecular denominator Game Theory, to improve the Capital adequacy ratio, building a solid platform for further discuss.Chapter IV first makes an in-depth analysis of the current situation of China's stock-holding banks, then looks back to the M&A cases which happened to the stock-holding banks and sums up the achievement and the problems in the M&A, finally analyses the motives of the further development of M&A in China's stock-holding banks.Chapter V, according to the current situation of China's stock-holding banks and their M&A motives, puts forward a series of concrete measures and the issues which must be paid attention to during the M&A in China's stock-holding banks, hoping to make some contribution the M&A development of China's stock-holding banks.