The Research On Economies Scale Of Commercial Bank M&A In China

Commercial Bank dependents on the survival of public confidence,so the scale of banking has the decisive influence to its competitive advantage,the larger not only be able to win the trust of customers,but also enhance its market competitiveness,and address the scale of mergers and acquisitions is the fastest way.In China,mergers and acquisitions among commercial banks as the banking market exit mechanism for the alternative system,the early acquisition of the commercial banks more than the nature of a government-led.Scale expansion of China's commercial banks to choose their own path more than the establishment of branches rather than through mergers and acquisitions.Commercial bank based on the existence of economies of scale,economies of scale for banks at home and abroad research results enrich the theoretical study.This article focuses on the most at home and abroad on the banks of the scale of the existence of research,empirical methods of economies of scale of China's commercial banks,as well as the existence or otherwise of economies of scale studies.Theoretical studies suggest that foreign banks in small-scale economies of scale have a high nature means smaller banks through mergers and acquisitions contribute to the achievement of economies of scale,but large banks can not achieve this result,the asset size of 100-250 million U.S.dollars for banks to that the cost of economies of scale up to 20%.And theoretical research on China's view,China's commercial banks have been the 20th century from the 90's as a whole scale change in the overall economies of scale for today's state-owned banks and joint-stock banks in the economies of scale and development trend of the state there are certain differences in stock Bank of the existence of irrational behavior scale expansion leads to economies of scale has been reduced.In this paper,the concept of economies of scale in defining the bank on the basis of an analysis of this paper,the existence of economies of scale of commercial banks, and through a bank of horizontal,vertical and mixed-mode analysis of commercial bank M & A formation of economies of scale.On the one hand,commercial bank M & A activities and economies of scale analysis,analysis of the way to the bank to expand the economies of scale and the relationship between the formation of China's joint-stock banks,especially small and medium-sized financial institutions mergers and acquisitions and provide a theoretical reference.On the other hand,analysis of financial indicators and stochastic frontier analysis method used in combination,using a more comprehensive analysis of financial indicators and systematic explanation of the bank and the potential economies of scale change.Using stochastic frontier analysis of the existence of economies of scale and validate trends.In this paper,qualitative analysis and quantitative analysis method of combining the commercial banks of China's M & A scale empirical studies carried out to achieve economies of scale of China's commercial banks of the scientific assessment,and found the process of China's commercial banks in M & A stage the size of different sizes changes in trends in remuneration,which is the implementation of mergers and acquisitions China's commercial banks have an important guiding significance.