Analysis Of The Relationship Between International Banking M&A And Banking Competitiveness

Commercial banks are profit-making purposes, the profit-driven commercial banks will broaden sales channels and expand the extent of opening up, which is an inevitable result of banking Mergers and Acquisitions. If commercial banks want to expand its own scale and enter the financial market of other countries, it is imperative to use a variety of ways and means to achieve cross-border mergers and acquisitions. Therefore, the banking mergers and acquisitions, both from a strategic point of view or from the perspective of market dominance, the ultimate goal and motivation is to obtain the maximum profitLooking at the ranking list of international banks with total assets of the top 100 banks, many banks have experienced domestic and international banking mergers and acquisitions, which in turn increased competitiveness of commercial banks. In particular, under the late 20th century, the banking industry has experienced an international wave of mergers and acquisitions, resulting in a number of large financial consortia, such as JP Morgan Chase, Citigroup, Mizuho Bank. Intense competition in the banking industry resulted in mergers and acquisitions, to promote the emergence of the financial carrier, thus further exacerbated international competition in the banking industry.Into the 21st century, China's successful accession to the WTO, which makes China's commodity market and capital market continue to open up. In order to fulfill our WTO agreements, promises turn into reality in 2006, RMB business of foreign banks relative to fully open, so that China's banking industry is facing unprecedented competition bureau. In order to cope with the impact of international financial capital flow, China's commercial banks had taken a series of reform measures, such as encouraging joint-stock banks listed in China and abroad , promoting the joint-stock reform of state-owned commercial banks, the introduction of strategic investors. The implementation of such policies is also reflected in China's transformation from planned economy to a market economy. This is a major initiative, the state-owned commercial banks through the transformation of governance, makes its internal systems and external risk-defense system very efficient, and gradually advanced with foreign commercial banks into line, thus improve profit and competitiveness of the banking sectorUnder the new era, especially the international financial crisis, triggered by the U.S. sub-prime mortgage crisis, the development of the international banking industry had been heavily affected. Many large U.S. investment banks had been restructured, bankrupted or be acquired, a number of small and medium banks, due to restrictions on the size of their capital, have been closed. Several major banks had also accepted state funding and the nationalization of control. The commercial banks of European facing the international financial crisis also accepted the government injecting capital and mergers and acquisitions. Which brings China's commercial banks not only the opportunity but also challenge. China's commercial banks, despite their system's shortcomings, they can seize the opportunity of the strategic adjustment of advanced foreign banks, and make great efforts to implement institutional reforms to accelerate the transformation of the banking merger and reorganization , thus enhancing their overall quality and competitiveness, so that it better adapt to China's socialist economic development. However, China's commercial banks have excellent opportunities as well as enormous challenges. China's commercial banks are subject to serious constraints in the past planned economy; state-owned commercial bank capital adequacy ratio is generally not high, non-performing loans and a larger proportion of bank bad debts. Which not only affect the reform process of China's state-owned commercial banks, but hampered international competitiveness of commercial banks. In order to enhance competitiveness, China's commercial banks must carry out reasonable state restructurings and merger and reorganization. Therefore, if the state-owned commercial banks want to go abroad to enhance its international status and competitiveness, it is imperative for them to use mergers and acquisitions and restructuring.In this international background, this paper mainly takes research on the banking Merger and Acquisitions and explains how M & A affects the competitiveness of banks. This essay is to provide some reference and suggestion on the M&A act of our banking industryThe beginning part of this paper describes the theory about the banking M & A and its competitiveness. First analyzes the definition and classification of banking mergers and acquisitions. And then select a market advantage theory, efficiency theory, economies of scale and core competitiveness theory to analyze the relationship between banking mergers and acquisitions and banking Competitiveness.The second part of this essay is to analyze the relationship between banking mergers and acquisitions and banking Competitive. First, analyze how the vertical mergers, horizontal mergers and mix merger affect the competitiveness of banks. then use a variety of ways to improve competitive effectiveness. Second, introduce the international M & A trends in the banking industry and its causes, and then analyze effectiveness of banking M & A in improving the banking business efficiency and competitiveness effects. Finally, sum up the impact of the world's five major banking mergers and acquisitions wave upon international banking, which inspires in the future development path of mergers and acquisitions patterns of China's commercial banks.The third part of this essay is mainly to introduce the current situation about M & A mode and the international competitiveness of china's commercial banks. Under different times, we take various acquisition modes, and then analyze how to achieve a strategic "three-step" principle. Introduce China's commercial banks, as well as its current international status of and analyze the difficult and hardship facing in cross-border banking business operations.The fourth part of this essay is mainly to analyze how to use the effectiveness arising from the mergers and acquisitions to achieve the efficiency of joint-stock restructuring, accelerate the pace of mergers and acquisitions to achieve competitive effectiveness in international financial market. Simultaneously, analyze the basic principles that we should adhere to in the process of international banking merger and acquisition. This part also looks ahead the development of china's banks and the modes of merger and acquisitionThe final part of this essay is to summarize and conclude the whole essay.