Bank Mergers &Acquisitions Development And Our Corresponding Policy

At the comer of new century, M&A swept across the world. Banking industry was at the top of this tide with unprecedented scale. As one of the most active industries involved in the global M&A, a large number of international super banks have emerged. Consequently, competition, market structure as well as government regulation have changed dramatically. How can Chinese banking industry surf in the tide and use this magic tool to develop them? What kind of M&A models should Chinese banks adopt in order to maximize profit? These are urgent and serious topics we should think about, and of course, The author will try to answer these question in the thesis below.In the past decades, Chinese banking industry has experienced structure reform and it is in the critical stage right now. With the penetration of reform and development, bank risks which have been accumulated in the old mechanism gradually emerged at the high speed of expansion. Moreover, the risks are closely related to the international financial risks. The internal reform requirement has driven the whole industry to begin its M&A attempts.As one of the most powerful expansion methods, M&A has discrepant effects with different social system and external condition. Mergers can improve the stability and competitiveness of the banks. Meanwhile, it brings the shrink of social well being and the reduction of competition if monopoly efficiency economy comes out. If so, it also leads to the decrease of the side effect to financial industry and even as we know, external circumstance plays the whole vital role.Especially at present, China is carrying out financial institution reform from stated-owned to privacy, from central-oriented to market oriented. If we do not have a clarified acknowledge of current condition, M&A in China would not have pleasant effect. Considering the preventive measures against regional and systematic financial risks ,both external and internal changes have urge Chinese banking industry to go on its reform and attempt to involve in the M&A tide.This thesis focuses on banking M&A in China. Here the bank only refers to commercial bank.Chapter OneGeneral statement of banking M&A and it's theoretical basis in this part, the author first gives a brief definition of bank and bank M&A, and on this basis, with relation to her own understanding of M&A theories and their logic development, the author reconstructs their development paths and give the M&A theories a thorough blueprint.The neoclassic economy, welfare economy, the market- strength hypothesis, the welfare economics, the Profession cycle theory, the efficiency theory, the transaction expense theory, the enterprise behavior theory, the game theory, as well as the information economy have been taken into account. Although this part has consumed many words, the author believes that because most theories solely stemmed from the microscopic plane and have neglected The social welfare changes which the bank M&A brings, it is irresponsible to take the microscopic individual as the research object to obtain the M&A Chinese banking industry should adopt suitable pattern of bank Obviously that it's only the comprehensive out to profoundly reasonable.Chapter TwoAs the key of this thesis, first, the author discusses the general M&A principles bank M&A should follow, which include bank characters future and so forth,Benefiting from the massive domestic and foreign financial literature material in the writing process, author combines the standard research with the real diagnosis research. and with the'massive data and the real case as well as multi-disciplinary which unifies the research to promulgate the intrinsic mechanism.The author has brought about so many ideas and also refuted some others related idea. Though researching on various types of realistic financial questions of the banking industry, the author's thesis aims at the characteristics of the different pattern to explore the choices the merge and reorganization can make. In addition, in view of the vigorous development of network banks, the author also first proposes taking it as one of patterns of choices of M&A.Chapter ThreeAnalysis of the theory of bank M&A that we carry know its possible cost and income, and then adopt cost, profit and risks in bank M&A. From the perspective of banks side, M&A can break barriers among different business ,widen business boundaries and may simultaneously reduce the technical cost in the fast expansion process. Additionally, because of the anticipated illusion and the empirical curve effect, M&A also may bring the unexpected income to the bank. Correspondently, costs are substantially large including costs which are paid for intermediary institutions and its counterparts ect. From macroeconomic financial assets, which perspective, M&A raises the liquidation is useful to keep the stability of financial social development. of course, we can not ignore the negative side it brings to our economy.Chapter fourCurrent situation of Chinese banking M&A The third chapter mainly introduces the realistic foundation of bank M&A in China. The Author thinks that it is the right time to take part in the M&A. As the main part of market participants, united, open, and competitive market provide Chinese banks a favorable circumstance to carry out M&A. Even though the function of the agencies such as investment banks, audit, accountant and so on are not obvious, by far they are already met the need of merger, and have already contributed to the merger of corporations in China. Other external Environments and the system factors like moderate intervention of government, effective capital market, construction of comprehensive laws and regulations, society guarantees system aspect and so on are not entirely as good as desired, but certainly they does not hinder the development of bank M&A. In the second part of this chapter, the author mainly analyzes the urgency for the China commercial bank to develop bank M&A under the current situation from the angle the main body-bank. In view of property right as well as the scale difference of various banks, the author starts with the state-owned commercial bank, limited-liability bank, the city commercial bank respectively. Through analyzing various types of the typical questions that exist in banks as well as the exterior competitive environment they face together from the angle of internal cause and the external factor, the author analyzes the necessity for Chinese banking industry to implement M&A. However, there are still some disadvantages compared with western country, it is feasible to engage M&A in China. Besides this, The author analyze the different characteristics of state-owned commercial bank,limited-liability commercial bank and city commercial bank respectively. Combined with their business surrounding, the author draw the conclusion that it is urgent to carry out bank M&A in China.