Research Of China's Commercial Banks Overseas Mergers And Acquisitions

An important feature of the current international financial markets is bank mergers and acquisitions (M&A) . With the deepening of China's financial reform and the gradual opening up of financial markets, especially since China entered WTO, the opening degree of China gradually enlarges and the influence of the international financial competition on our country's banking industry is stronger and stronger. At present, the international banking industry is more and more large-scaled, comprehensive and globalized. This development trend makes China banking industry face an important problem, that is, how to choose the development method. China's commercial banks should merger and acquire foreign banks, and actively develop foreign markets, expand market share. In that way, China banks not only can break through the restrictions on the domestic market, but also on a global scale to achieve optimal allocation of resources, make full use of favorable conditions abroad and achieve substantial revenue.The first chapter discusses the basic concept of M&A,commercial bank M&A and the concept of overseas M&A, summarize up the M&A theory,causes.In chapter 2, the paper describes the prominent characteristics of current international and China banking industry's M&A.The third chapter discovers some issues of China overseas M&A: Difference between the internal and external system; small scale of overseas M&A, lower profitability, ambiguity of strategy. In light of these problems, the article listed some advanced foreign experience.Base on these introductions, in chapter4, the article describes methods of analysis the efficiency of bank M&A, then analysis cases from the financial and DEA point.At the end of the article, it puts forward the tactic that is helpful to the smooth and rapid development of China banking industry, as follow: promote the universal bank, take trapezoid expansion strategy, promote financial capital and industrial capital integration, and focus on the integration of ex post, and so on.Combining of theory and case, the article extend from "cross-border M&A" to "oversea M&A" concept according to China's special circumstances. When it respect to research method, the writer put the business theory, economics, management and other interdisciplinary theory as the theoretical basis for this article. There are also a lot of research limitations and shortcomings, it is necessary to further the content of the paper and to add further study.