Bank Mergers And Acquisitions In China

Since 1990's, bank merger and acquisition (M&A) events appeared one after another in the globe range. The upsurge of bank M&A indicated that all countries' banking was just carrying out a deep-going and extensive structure adjustment, and it also revealed the market structure and the competition pattern of the future banking. China's banking system is also performing reform so as to meet the market's requirement and the world trend. Whether we can use the method of M&A, and if can, how to use, no doubt, is an urgent and serious subject for us to achieve the reform aim and the banking development.Bank M&A is a systematic project ranging over microscope and macro scope. From different point of view, we can get different recognition. Banker, as micro subject, usually pays close attention to their own technique problem involved in M&A and what profit M&A can bring in; while society, as macro subject, always to the whole institutional arrangement and the synthetic interest. Limited from the article and the ability, and considering the good institutional environment is the most urgent need, this thesis has made a study only based upon the whole interest of banking and society. It drew support from the beneficial result of modern economics research, followed the methods of historical inspection and contract analysis, discussed the compatibility of bank M&A in China, inspected the current status and deviation of our up-day's bank M&A, and finally gave suggestions to construct a healthy institution forbank M&A.The thesis can be divided into three parts:Part 1: Inspect the Necessity and Compatibility of Bank M&A in China.M&A is an inborn impulsion of every bank in developed country as well as in developing country. To maximize profit is every modern enterprise's (including modern commercial bank) natural characteristic, and is also the utmost impulsion of M&A action. Market Power Theory, Efficiency Theory and Transaction Cost Theory all study and analyze the internal motivation of bank M&A just from different standpoint: Market Power Theory emphasized the scale effect following M&A, Efficiency Theory the synergy coming with M&A, Transaction Cost Theory the cost decrease resulted from M&A. All these effects are helpful to maximize profit. The theories above foreshadowed our bank M&A research.Then the thesis illuminated the specific characteristics of our banking. The economy of our nation is now in a transforming period, and our banking is not only bothered with many difficult problems, but also faced with quite outside challenge. On the one hand, the problems, such as impaired capital, managing and operating inferiority, scale but uneconomic holding, still exist after previous reform attempt. We have reasons to believe M&A will be the efficient means to solve the above problem, which is based upon profound and comprehensive thought. On the other hand, our nation has already been a member of WTO. It necessarily means the finance market door has been opened toforeign financial institutions that have great advantages in fund, technique, human resources and growth pattern. China needs M&A to guarantee the banking survival.Part 2: Inspect the Current Status and Analyze the Deviation of our Up-day's Bank M&A.Our banking has already made some probe on M&A, so here we first make a brief review, which will be the base and premise of our following analysis.Then the operation flow of developed country's bank M&A, which the thesis contrasted with our bank M&A performance, is showed. The contrast told us there were great differences between domestic and oversea bank M&A. These differences lie in M&A motive, M&A tactics, M&A mode and the role of government in M&A, and they have the same root——government location in M&A.Without consideration, we can't say that the bank M&A in the developed countries are superior to that in our nation, neither can we follow blindly their way. After all, we have our own state condition and long-term development plan, so we should find out...