The M&A Of International Banking And The Development Of Chinese Commercial Banks

The M&A among banks is one of the ways to reform the managing system and organization structure in commercial banks through the transaction of property power in the capital market. Its aid is to improve the inner developing power and the adaption to the environment. The methods of bank's M&A are divided into 4 kinds: Horizontal Merger, Vertical Merger, Conglomerate Merger and Cross-border Consolidation.The theory basis of bank's M&A is the theory of industrial organization. Besides, many western economists have been paying attention to it. So there are many theories in the west to analyze the cause of M&A, such as Market power theory, Efficiency theory, Transaction cost theory and Manager's theory. The history of bank's M&A is almost as the history of commercial bank. The long history of bank's M&A can be divided into 3 tides: from the end of 19^th to 1920s, 1950s to1980s and 1990s to now.As to the realistic background of bank's M&A in 1990's, the most basic purpose of bank participating in M&A is all to attempt to improve the competitive ability and raise the profit level. The external causes include: financial liberation and globalization, the rapid improvement of IT technology, the promoting of enterprise's M&A, the government's effort in the environment of policy and law.Since the middle 1990's, China has practiced in the field of bank's M&A . In present, banking industry is one of the main industries to be opened as china's entry of WTO. That means China's commercial banks are confronted with a serious situation. In order to add the competitive ability to the foreign banks, the reform of Chinese bank must be improve more deeply and thoroughly. In the writer's mind, M&A is one of the best suitable means to the innovation of Chinese banking in the future to deal with the problem of diseconomy of scale. The national commercial bank's M&A should emphasizethe innovation of capital claim, and the small commercial banks should make the accumulation of energy and competitive capacity to compete with the four big banks.At the time of implementing the strategy of M&A , should adopt different merger tactics to the bank of different nature: Merger focal point of state-owned commercial bank property relations improve and administration structure reform. The M&A of the commercial bank of the shareholding system should lay particular emphasis on the enlargement of the scale and concentration of the strength. For transform into with joint efforts, strengthen antagonism in state-owned commercial bank, solve and perplex Chinese scale uneconomical problem of banking for a long time effectively. In addition can also choose to launch the merger of the commercial bank and urban commercial bank in the more developed areas. For adapt to international trend of mixed operation, we can carry on commercial bank amalgamate with insurance company, securities broker company, trust and investment corporation in proper opportunity; and allow the international financial institution or the equity participation of the domestic commercial bank of the foreign capitals too.