The Research Of Our Country's City Commercial Bank M&A

Ever since 1979, the first city bank was founded in Luohe, our country's city commercial bank had already passed through about 30 years, it developed well as a whole. But we should also see that in its developing process, it exposed many flaws, such as: the bad assets amount to be huge, capital in cash seriously insufficiency, single market and so on. After stepping into WTO, our financial market faced with even more intense market competition. Considering the need to survive and to develop, city commercial bank had to seek the way and the method for its reform and innovation.In view of this question, considering the status quo and flaws of our country's city commercial bank, the article believes that Mergers & Acquisition is the best way to solve this problem. It not only receives the policy support from supervision organization, the operating process is simple, but has many successful precedents at domestic and foreign countries. What's more, at the end of 2005, Huishang Bank was established in Hefei province, which announced that the Anhui Province city commercial banks, the city banks united in the voluntary foundation to form a completely new one, became the 13th joint-stock commercial bank of China. It was the first one in our country to reorganize within the province scale and meant much to us. The practical effect is obvious not only in the economies of scale, the cooperative effect thought in the traditional theory as well as save the transaction cost, but also in the consummation of finance and the supervision system, the service area economy welfare effects. It also provides successful experience for us to solve the Chinese city commercial bank's development problem in considering the realistic situation of China.Considering the realistic situation of our country's city commercial bank, the successful experience of M&A in Japanese and South Korean Banking industry, as well as the Huishang Bank's innovation in M&A pattern, we believe that the reasonable way for our country's city commercial bank to reform and develop by using the M&A is to realize the M&A in the provincial region, through government leadership as well as under marketability operation pattern, display the region's central city commercial bank's function and realize its own development by further using the capital market platform,...