Study Of The Efficiency Of Commercial Bank Mergers And Acquisitions

The tide of bank M&A has been sweeping throughout the world, as western countries loosen financial supervision since 1990's. To win the competition, foreign banks has continuously expanded scale and occupied the markets through M&A. After the entry of the WTO, foreign financial institutions come into our markets more and more frequently. Meanwhile, after several years reform, the conditions are mature for our own commercial bank M&A. Theoretically speaking, the bank M&A is the Pareto improvement which could bring the re-integration and re-allocation of the resources. However, it has not in fact. Many western economists have done lots of bank M&A analysis and found out many banks have not bring performance improvement through M&A. As the development of our commercial banks M&A, whether the M&A could bring performance improvement and how to improve it through M&A has become serious and hot.This paper is about the efficiency of Chinese commercial banks M&A and has four parts totally. The first part is chapter 1,mainly define the conception of M&A and review the theory of the bank M&A. The second part includes chapter2 and chapter3, mainly describe the current status,causes, trends of the bank M&A in home and aborad. The third part includes chapter4 and chapter5. In this part, I firstly give the introduction of the Financial indicators analysis and the DEA and then use these methods to research the M&A efficiency of Shanghai Pudong Development Bank and The China Construction Bank. The last part of this paper is chapter6, mainly make some recommendations about how to improve the efficiency of the bank M&A on the bases conclusion of part3.