Study On The Operational Risk Management Issues Of China Merchants Bank Merger And Acquisition Of Wing Lung Bank

After entering the twentieth Century,with the strength of Chinese commercial banks' becoming more and more strong,and the promotion of globalization,Chinese banks are gradually realizing the necessity of “Go abroad”.With the acceleration of the economic integration,many banks in China have stepped up the internationalization and have carried on overseas expansion,in order to accomplish the strategy of globalization.Commercial banks to implement overseas mergers and acquisitions,is conducive to opening up foreign markets and expanding customer resources.But at the same time,the operating risk is also followed.How to deal with the operational risk and the bank risk management become an essential research direction in mergers and acquisitions.However,the overall situation is not idea.But since 2006,,the market is a large one of foreign banks to carve up the potential of the more intense,the merger effect has been a certain degree of improvement,the scale is also growing.Under this background,how to deal with the operational risk and the operational risk management after the completion of M & A has become an essential research direction in M & A topic.In our country,by the international banking industry mergers and acquisitions boom,Chinese strength and size of the larger banks began to enter the international market.Chinese commercial banks realize that the occupation of overseas markets is imminent.As a representative of our country commercial bank,Commercial banks carried out its first overseas mergers and acquisitions of Wing Lung Bank,one of the Hong Kong native banks.After five years,from company performance and financial statements point,the acquisition has certain reference significance.On the basis of referring to a large number of references,this special case of China Merchants Bank is analyzed.In the first part,the concept of overseas M & A,the risk of M & A and the related basic theory are introduced.In the second part,the author summarize some overview on relevant theories In the case analysis part,the operational risks and countermeasures of China Merchants Bank in the acquisition,and analyzes the problems and factors of China Merchants Bank's risk management measures have been analysed,and then the author puts forward practical suggestions on the risk management of China Merchants Bank.This paper is divided into five parts.The first chapter is the introduction,introducing the significance and background of this paper,through the review of domestic and foreign research literature,this paper constructs the research ideas and methods,so as to sort out the research framework of this paper;The second chapter describes the operational risk of overseas M & A: firstly,we sum up the concept and characteristics of overseas M & A,the concept and characteristics of overseas M & A,and the two basic theories of M & A.The third chapter is in the part of case analysis: firstly,this paper introduces the basic situation of China Merchants Bank and Wing Lung Bank,including the development of history and business performance;secondly,the introduction of the pre merger investment preparatory measures,mergers and acquisitions after the completion of the China Merchants Bank integration initiatives.Thirdly,the paper analyses the China Merchants Bank the motives of Wing Lung Bank acquisitions,including the pursuit of synergistic effect,expanding the size of the market,breaking barriers to trade and to resist the market risk;finally,analysis of the operational risk of M & A,including the international settlement risk,the risk of future profitability,international business risk and cultural integration risk.The fourth chapter is the concrete analysis of the operational risk of China Merchants Bank.In the last fifth part,some suggestions are put forward for the operational risk management after the completion of the merger and acquisition of China Merchants Bank.China Merchants Bank should continue to improve the establishment of the operational risk system,improve the political risk prevention and reduce exchange rate risk.The article concludes that although China Merchants Bank on potential operational risk management measures are still insufficient,in the history of commercial banks overseas mergers and acquisitions,is still a successful case.Under the background of internationalization,how to size up the situation,promote scientific,positive and steadily overseas merger and acquisition activity in the integration period,how to take reasonable control and guard against the risk of overseas operations,the "going out" strategy is an urgent need to solve the problem.Only with the case analysis of China Merchants Bank Mergers and acquisitions,and conclusions are not universal,it also need a large number of practice and experience to make a conclusion.At the same time,it should learn from foreign successful cases to improve the operational risk management of commercial banks in our country.