Motives Research About Multinational Bank Mergers And Acquisitions

Since the later 20 century, financial globalization develops quickly with power head. The environment and operation of international bank industry are greatly changed by capital flow globalization, financial institution globalization and financial market globalization, which make the international bank industry show new trend: bank M&A and integration further speed to achieve business comprehensive, internationalization and high technology. M&A has become the impetus to change current structure of international bank industry and one of the most important factors to push international bank industry to enter the whole new times. During this M&A wave, multinational banks with stronger capital are the main strength. Big scale, wide scope and deep influence, called unprecedented in the history, bring about many international "super jumbo type" financial institution. M&A between National wealth bank and the first inter-continental bank, between Tokyo bank and Mitsubishi bank, between American big bank and Chemistry bank, between Switzerland bank and Switzerland united bank, between Citibank and traveler group etc. all cause huge sensation in the global financial circles.Theory field is focused on cost decrease motive and revenue impetus motive on multinational bank M&A motives analysis, including scale economy theory, transaction cost theory, organization capital and organization experience theory, financial synergy theory, principal—proxy theory, market power theory and price undervaluation theory and so on. Seen from the empirical view, multinational bank M&A is the combination of self-development and macro factors. Multinational banks expand scale and business, increase risk defending ability by use of M&A, which lead the decrease of financial institution number and the raise of industry concentration degree. However, multinational banks must pay attention to the integration after M&A.After the entrance of WTO, China financial industry competition will appear "international competition in the home, domestic competition in the world". How does domestic bank industry quicken integration speed and increase international competitiveness and enter the wave of financial globalization? The paper thinks domestic bank industry should quicken the overall environment building of M&A by use of capital restructuring, and then probe transition model, finally build conglomerate controlled by banks and accelerate the development of commercial banks. The government should create good condition and provide encouragement institution for bank M&A.In order to analyze the essence of multinational banks M&A and probe real motives, the paper researches multinational banks M&A by means of the combination of static analysis and dynamic analysis, standardization analysis and empirical analysis, and calculation method. The concrete context is following:The first part introduces the research aim of the paper and research situation on M&A motives of multinational banks. The second part introduces the definition of multinational bank and M&A and the development of multinational banks M&A. The third part and the fourth part separately analyze various motives from the theory and empirical view. The final part illustrates corresponding measures that domestic banks need to take for the sake of further development.