Study On Overseas M&A Strategy Of Joint-stock Commercial Banks

Since the reform of shareholding system,China’s commercial banks have made a qualitative leap in both capital scale and operational capability.However,there is still a gap between the international business and domestic bank,in both capacity and the strategic layout of globalization.Commercial banks of China need to expand overseas urgently in order to integrate the customer resources,technical capabilities and business systems of the global banking industry to become a truly world-class commercial bank.Small and medium-sized commercial banks have fewer attempts to expand overseas.Meanwhile,most existing literatures have studied China’s banks as a whole to study.Only a small number of scholars separate China’s banks according to size,or only focuses on large commercial banks.This paper focuses on small and medium-sized commercial banks,which is of innovative significance.This paper selects the method of combining theory and practical to analyze the causes,strategies and performance of overseas mergers and acquisitions of commercial banks.This paper selected ICBC bought Argentina standard bank,CCB bought BIC bank of Brazil as the representative of overseas M&A of large state-owned commercial banks;CMBC bought Yonglong Bank and CMSB bought UCB as the representative of small and medium-sized commercial banks’ overseas acquisitions.In this paper,the author makes a comparison and analysis of the strategy selection for the overseas M&A of small and medium-sized Banks.This paper first summarizes the domestic and foreign scholars’ analysis of the causes and performance of overseas mergers and acquisitions of commercial Banks,then analyzes the motivation,process and result of the overseas M&A cases of four commercial Banks.Then,through the analysis of event research and financial index,the M&A performance of the four Banks was further analyzed.Finally,summarizes the successful experience of ICBC,CCB,CMBC and failure of CMSB,and further analyzes the small and medium-sized commercial banks in overseas mergers and acquisitions and the difference between large commercial Banks.Finally,on the basis of this,the author puts forward some suggestions on the overseas M&A strategy of China’s small and medium-sized commercial banks.The first chapter is an introduction.This paper introduces the background of topic selection and research significance,framework and innovation points.The second chapter is the literature review,which summarizes the main research achievements of the M&A theories of commercial banks at home and abroad.The third chapter discusses the definition and importance of the overseas expansion of China’s banking industry,and expounds the development course of overseas M&A of commercial banks in China.It further analyzes the characteristics of diversification of m&a target area,further expansion of M&A subject area,diversification of acquisition target business and diversification of overseas M&A strategies.The fourth chapter analyzes four cases.Firstly,the paper introduces the basic situation of the merger and acquisition,and then analyzes the M&A motivation and process.The fifth chapter discusses the performance of overseas M&A.Chapter six,conclusions and recommendations.In conclusion,there is a gap between the success rate and efficiency of the overseas M&A by small and medium-sized commercial banks and large commercial Banks.And on the basis of analyzing the reasons,put forward the internationalization of small and medium-sized commercial banks to clear their own development strategies,and make preparations for mergers and acquisitions,including the selection of object of strategic synergy of M&A insight into the expansion of legal policy in the targeted area.In the process of M&A,we need to take the initiative.After the merger and acquisition,we need to balance the domestic and foreign markets and deal with the post-merger business relationship.