Discussion On China's Banking Industry Mergers And Acquisitions

As globalization and financial liberalization have been the key to the characteristics of the modern global economy, a climax of global merger & acquisition in banking industry has occurred in order to enhance banks' international competitiveness since 1990's. As a possible and effective way to improve banks' competitiveness and to settle banking crisis, merger & acquisition in banking has also been introduced in China. However, what's the theoretical basis of merger & acquisition of banks? What's the practical significance of the merger & acquisition of banks in China? What kinds of problems are there in the merger & acquisition of banks in China? How to develop the merger & acquisition of banks in China effectively? The major purpose of this paper is to answer the above questions.This article theoretically limits and analyzes merger & acquisition of banks firstly. Chapter 1 begins by specifying the definition of merger & acquisition of banks, which is used throughout both this chapter and the following study. Many western economists have been paying attention to the banking merger & acquisition, and there are many theories in the west to analyze the motivations of banks' merger & acquisition, such as Efficiency theory, Transaction cost theory, Market power theory and Agency problems theory. Possible income and cost of banks' merger & acquisition are further investigated, which can help us to determine whether carrying on merger & acquisition of banks or not.The wave of merger & acquisition in international banking industry has become a very outstanding phenomenon in the development of international financial industry. Chapter 2 introduces the present conditions and characteristics of the international banking merger & acquisition, then explores the reason and the ongoing trend of it on emphasis.Chapter 3 conducts empirical analysis on the problems existing in the banking...