A Study On The Risk Measurement Of Cross - Border M & A Of China 's Commercial Banks

With the further opening‐up of financial service industry in China and the end of transitional period upon the entry of WTO, foreign banks are getting equal opportunities and favorable conditions as Chinese commercial banks. To win a leading position in this tense competition, Chinese commercial banks must come up with higher and more enduring development strategies and make efforts to enhance their own competitiveness. Looking back to the fast development of foreign banks, cross‐border M&A is a major way to make banks more competitive.However, the process of cross‐border M&A is very complicated, facing much more risks and uncertainties than the M&A within one nation. This thesis reviews the relevant achievements in the studies on the risk evaluation methods used in the field of cross‐border M&A conducted by Chinese companies and banks, followed by a brief introduction on the content and research approaches of this thesis. This thesis analyzes major risks threatening the cross‐border M&A process in chronological order in terms of risk types, features, and relationships among these risks. On the basis of AHP and Fuzzy comprehensive evaluation, a model for comprehensive evaluation is created to measure the risks of cross‐border M&A faced by Chinese commercial banks. ICBC’s merger and acquisition of the Bank of East Asia is used as an empirical case in this thesis. In the last part of this thesis, suggestions on risk control and prevention are given according to different risk types.