Functions And Applications Of Cultural Integration After M&A Of Banks

Under the background of global bank M&A, the note that "Big is beautiful" is denied and verified again and again. The financial crisis in 2008 has aroused a new tide of M&A of banks on Wall Street. The occurrence of M&A of banks is not accidental; it has both external as well as internal factors. Because M&A of banks always happens on a large scale, and involves a great amount of money and a large number of people, it is always the subject of studies both in the academic and financial circles. Bank M&A share some features with other corporate M&A; meanwhile it also has its distinctive characters. There are many factors that may affect the final result of M&A of banks whether it is at the preparation stage, implementation stage or integration stage. Every stage in the process has significant impact over the final outcome of M&A. This thesis mainly focuses on the integration stage and discusses the main functions of cultural integration. Then some implementation method of cultural integration is proposed. Finally, based on a comparative analysis of two cases of M&A of banks from cultural integration perspective, the importance of cultural integration after M&A is proved and strengthened again. And some suggestions for Chinese banks who may practise M&A in the future.