Bank M & A Research And The Chinese Banking Sector

Since the foundation of the People's Republic of China, our banking industry hasgone through three stages of development and established a diversified, open andcommercializing structure for competition. When the wave of Merger and Acquisitionswept the whole world in the 90s' of the last century, banking organizations andfinancial institutions of various countries including China has been impacted. As theopening-up process accelerates and the Chinese banking industry becomes moreinternational, bank mergers and acquisitions has turned out to be one of the realisticproblems we need to face. This dissertation is divided into four chapters. Chapter oneconcentrates on explaining the concept, format of bank mergers and acquisition, aswell as five climaxes of global M&A, while Chapter two gives a detailed analysis ofthe benefit of M&A transaction. In the following chapter, costs incurred in bankM&A are discussed. Finally, Chapter four focuses on interpreting two importantquestions based on the theories illustrated in the previous three chapters, together withthe characteristics of the Chinese banking sector and the necessities of the M&A.These two questions involve the possibility analysis of the foreign banks swallowingup the Chinese domestic banks, and the effect of M&A on the efficiency of theindustry. In a completely new environment, employing successful M&A transactionscan enhance the competence of the domestic commercial banks and promote thehealthy development of the whole sector. In a word, mergers and acquisitions play astrategic role in the Chinese banking industry.