The Empirical Study Of Commercial Bank M & A Efficiency In China

Since 1970s,the financial liberalization makes the bank's acquisition gain greater room, to 90s of the 20th century, the international bank M & A is intensified. As the famous economist Stephen said , a large American company is not without some degree of merger or consolidation to grow up, any one of the famous banks has a lot of experience in M&A. Under the influence of the international banking M&A activities, the activities are more and more intense in China.On one hand,consolidation and mergers may generate efficiency gains-cost savings, revenue enhancing ,and greater bank size can yield economies of scale and scope and increase diversification opportunities. On the other hand, bank mergers may increase market concentration ,the main argument of this article is about whether consolidation can improve the efficiency and international competitiveness, this paper gives some helpful inspiration for the development of banking mergers in our country by the empirical study of commercial M&A efficiency in China.This paper includes the six sections: chapter one is the introduction, the selected topic background is introduced, the literature of bank merger efficiency has been carried out, the research approach and the structural arrangement are summarized in this chapter. Chapter two is the basis of this paper, the conceptions of the bank M&A are defined here, the types and the bank motive theory of bank M&A are introduced. Chapter three analyzes the current situation of Chinese commercial bank's market structure and the M&A activity, we find that the concentrate ratio of Chinese banking industry is growing lower and lower from the market structure of Chinese bank industry calculator results. Chapter four uses DEA and Malmquist index analysis to analyze the overall dynamic efficiency of commercial banks from 2004 to 2009,we select the fifteen banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, CITIC Bank, China Everbright Bank, Huaxia Bank, Minsheng Bank, Guangdong Development Bank, Shenzhen Development, China Merchants Bank, Fujian Industrial, Shanghai Pudong Development Bank and Prudential Bank. And we also sets the control groups. Chapter five makes empirical researches on China Construction Bank's acquisition of Bank of America (Asia), Industrial Bank's acquisition of Foshan commercial banks , development process of the acquisition of Citibank. Chapter six gives some suggestion to Chinese commercial banks' M&A ,which has some instructive meaning .From the result we can find that consolidation can improve the efficiency and international competitiveness , help solve the diseconomies of scale and help maintain financial stability. We can increase the size of the level of the whole group by developing the business and departments which has economies of scale through M&A. Mixed M&A is a trend of the development of Chinese banking industry in the future, so it not only need the banks strengthen the integration themselves ,but also need Improve the capital market, the market supervision system, the disclosure of information system and the social security system, in order to improve the acquisition of efficiency.