| The M&A activities in banking industry has increased rapidly with the liberalization of Finance, the rapid of multinational corporations, the deregulation of finance and the rapid development in information technology since 1990s. This trend has aroused great concerns in theoretical circles and a large number of the researches in this area. Many scholars have taken researches on the background, the motivations and the performance in the M&As. Many scholars have put forward meaningful findings in this area. However, cross-border mergers and acquisitions among banks is just one of the means in the early times. In the later period the bank focuses on the expansion of business scale. Between the late 20th century and the beginning of this century, the international financial environment changed deeply. Macroeconomic conditions have a more profound impact on the mutual penetration of multinational banks. Financial crisis makes the financial system strain and causes a chain reaction in related industries and the economy-wide crises. As the financial crisis, the major developed countries begin to relax foreign investment restrictions. This offers more opportunities and business scale to the cross-border bank. This article will focus on the late business expansion of the corss-border banking and discuss the role which the macro factors play when the bank expand the business scale.Accordingly, this paper chooses two aspects to discuss about cross-border expansion of the banking sector. These two aspects include the banking business of one country in foreign countries and the business of foreign banks in this country (the Deposit and Loan Size measuring the business scale).This article analyze the date between 1995 and 2009 from 21 countries (18 developed countries and three developing countries) by the method of Panel Analysis. This article wants to explain the relationship among GDP per capita, GDP growth rate, the market capitalization, Domestic credit provided by banking sector (%of GDP),Gross savings (%of GDP),Inflation, Population, Exports of goods and services, External loans and deposits of banks in individual reporting countries, External loans and deposits of reporting banks vis-vis individual countries. This article finds GDP per capita has a positive impact on the bank's cross-border expanding. Furthermore, the impact of domestic bank expanding to foreign country is more significant than the impact of foreign bank expanding to domestic country. Exports of goods and services on behalf of the extent of international trade for a country have a significant role in promoting expansion of the banking. Thus, trade liberalization can significantly promote the global development of the banking industry.In this paper, the content is organized into five chapters. The first chapter introduces the background, value and major research methods of the paper. The second chapter reviews the literatures written by Chinese and foreign scholars, founding that the majority of scholars give focus on the macroeconomic level, the banking industry level, the micro bank-governance aspect during the M&A activities. The third chapter theoretical analyzes the influence of the Macroeconomic indicators during the expansion of the bank. The fourth chapter analyzes the date between 1995 and 2009 from 21 countries by the method of random effects panel data analysis. The chapter examines the significance of the major macroeconomic indicators during domestic bank expanding to foreign country and foreign bank expanding to domestic country. The fifth chapter gives the conclusion of the paper. The paper finds macroeconomic condition of the country is the prime consideration during the banking industry expansion and the level of economic development, foreign trade situation have an important influence on the expansion of the banking industry. |
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