Study On Market-Oriented Mergers And Reorganizations Efficiency Dominant Small And Medium Banks

Small and medium-sized banks are an important part of China’s financial system,but they have neither scale advantage nor capital strength.Under the background of the trade war between China and the United States in 2018 and the outbreak of the new crown epidemic in 2020,they have borned the pressure and risks of far larger banks.In recent years,the merger and reorganization of small and medium-sized banks has reached a new peak due to the instinct of self-help and policy orientation.Based on the characteristics of the market economy of our country,most of the cases of merger and reorganization that occurred in the past are led by the government.Although the government intervention in merger and reorganization has reduced the systemic risks of the financial market and improved the macro efficiency,there is also the possibility of reducing the profitability,technical efficiency and other micro efficiency of the subjects of merger and reorganization.In 2020,the State introduced a series of policies to promote the market-oriented process of bank mergers and restructuring.Whether market-oriented mergers and restructuring can resolve risks,improve restructuring efficiency and overcome the limitations of government intervention remains to be studied.Based on the theory of enterprise reorganization,this paper studies whether the merger and reorganization of market-oriented small and medium-sized banks can significantly improve the efficiency by combining empirical research and case analysis.Firstly,based on the research of domestic and foreign scholars,the merger and reorganization will be divided into two categories of government-oriented and market-oriented from the macro and micro perspectives according to the motivation orientation of merger and reorganization,and the selection of Pingan Bank and Shenzhen Development merger and reorganization cases will be determined based on the research theme and the principle of case selection;secondly,the restructuring process of this case will be analyzed to determine the restructuring motivation of both parties,and the use of the Camel Evaluation System to clarify the risks existing before the restructuring and the resolution after the restructuring;finally,the data of Ping An Bank from 2003-2020 will be selected to analyze the actual efficiency by using the financial indicator analysis method,and the results show that the bank’s ability has been improved to varying degrees after the restructuring;and the data of Ping An Bank and 42 other listed banks from 2003 to 2020 will be selected to make an empirical study on the restructuring efficiency with the focus on the DEA model,and the results show that Ping An Bank’s efficiency after the restructuring is the best.Based on the study,it can be seen that,on a comprehensive basis,the efficiency of banks will be significantly improved after the merger and reorganization,risks will be effectively resolved,and the micro-efficiency of restructured banks will be improved,that is,market-oriented merger and reorganization will significantly improve the efficiency of bank restructuring,risk resolution and other micro-efficiency,and is the inevitable choice for the development and growth of the banking industry.Small and medium-sized banks may independently choose the merger method by reference to the conclusions.This paper puts forward some suggestions from three aspects:Banks should strengthen the marketization factors of merger and reorganization,strengthen the integration ability after reorganization;the government should change its functions and perfect the laws and regulations;the financial market should establish effective mechanism and system.