Research On Timing Of Banking Merger & Acquisition

After Dec11 of 2006, the banks of China was opened to foreign banks, as the time of interim ending, the banking is entering into a new situation, and domestic banks face more and more fierce competition. The banks in china need improve the competition in home market, but also enhance the ability of international competition, thus, the banks must develop fast. As the tide of international banking M&A sweep through the world, more and more foreign banks turn into banking of China, so domestic banks have to respond the tide of M&A, and wage the campaign of M&A, realize the great development for coping with the international banks.In the condition of open market, the banks of our country should improve ability of management and anti-risk for the fierce competition by the activities of M&A. However, the choice of timing is very important to success of activities of M&A, so it is needed to make a research whether the timing of banking M&A is coming. The paper first analyzes the relationship between out condition and M&A timing by qualitative method and positivism, then, analyzes internal condition,that is, status quo of our banks and international banks before M&A by the comparison method, and finds that there is a big gap between our banks and international banks on the financial index, so the timing of international M&A is not mature. But, by the method of positivism, the paper finds there is obvious correlation between the development of bank and macro-economy, and the ratio of real risk-return is higher than the necessary risk-return, which shows the timing of domestic M&A is mature for the banks with good achievement in management.