Research On The M&A Of Contemporary International Banks And Strategy Selection Of China's Banking

With the development of economic globalization and financial liberalization, a wave of merger & acquisition in international banking has occurred since 1990's. The wave began from the United States. Many developed countries such as Japan and some developing countries in East-Asia and Latin American also have been included. This has leaded to very important influence on the global economy and finance. At the meantime, M&A in China's banking has also been introduced. With China's financial industry opening its door to the outside world, M&A of banking has come into a new period. We need to realize that the wave of merger will continue and our financial industry will open to the world. If we can realize the development rule of the M&A of banking and make effective policy, it will have a very important meaning in theory and realism to improve the competition of Chine's banking and maintenance financial stability and security.Some correlative theories about merger & acquisition is first introduced and evaluated which include the neoclassic economics theory, the principal-agent problem and the new institutional economics. About six kinds of theory such as the scale economy, market power, efficiency theory, etc. There are there kinds of theories concerned about the principal-agent problem, i.e. the agency cost hypothesis, the free cash flow hypothesis and the hubris hypothesis. The institutional change theory, the property theory and the transition cost theory are involved in the new institutional economics.This dissertation analyzes the position, the character and the reason of the wave of M&A of international banking in contemporary era. On the base of introducing the process and characteristic of the M&A of international banking, this chapter wants to find the reason. Since most of M&A case occurred between such banks that they are public companies, the chapter will make an analysis about the no-linear characteristic in capital market from two points, namely the no-linear complex system and the investment behavior. Before analyzing the reason of the M&A of banks, it is necessary to analyze the merger from the point of the managers and shareholders of two companies. Because of the contradiction between the traditional theories and the actual effects, this chapter will attempt to find the real reason.The efficiency and effects of the merger & acquisition of international banks are further analyzed in the next chapter. First, the chapter utilized"the earning ratio model of the stock right"to study the efficiency of M&A about the City Bank. The effects of M&A are concerned from three aspects which are the micro-effect, meso-effect and macro-effect. The micro-effects include five aspects, such as obtaining the scale economy and scope economy, exchange their dorminance, breaking the entrance barrier and developing the business boundary, inhancing the risk of a single bank, and needing much less employees. Five kinds of meso-effects will be introduced including changing the overall situation of the international banks, promoting the transfer of management system in financial sector, increasing the convergence of financial resource, promoting finance innovation, saving dangerous banks to preserve the stability of financial system, leading to some difficulties in financial regulation. The macro-effect have four aspects, i.e. improving the collocation efficiency of economic resource, promoting the technical advancement, promoting the economic growth and having an influence on the feasibility of loan.Ulteriorly, the article discusses the cases of M&A in our country. On the base of reviewing the process of our country, the chapter draws a conclusion about the character of M&A in Chinese banking. Meanwhile it will study the effects and then point out the problem.In the last, the dissertation discusses the countermeasure about M&A of banks in our country. On the base of analyzing the necessity of merger, some strategies are talked about how to promote the merger from four points such as the state-owned commercial banks, middle-small public commercial banks, city commercial banks and multinational merger. Combined with the actual situation in our country, some advices are proposed about how to enhance the conformity ability and strengthen the construction of system.