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Bank Consolidation and Performance

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 34 pages

File Size : 10,71 MB

Release : 2004-08-01

Category : Business & Economics

ISBN : 145185692X

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Book Description

We examine a large panel of more than 100 banks from Argentina to study the effects of bank consolidation on performance between December 1995 and December 2000, a period of heavy bank consolidation and relative calm. Overall, we find a positive and significant effect of bank consolidation on bank performance. Bank returns increase with consolidation, and insolvency risk is reduced. Additionally, the study suggests that mergers and privatizations have a beneficial effect on bank returns. The effects of a bank acquisition on return on equity is, however, negative. Acquisitions do not seem to have any effect on risk-adjusted returns. The study also finds that a bank's insolvency risk is reduced significantly through mergers and privatization and is unrelated to bank acquisitions.



Bank Consolidation and Performance

Author :

Publisher :

Page : 38 pages

File Size : 18,14 MB

Release : 2004

Category : Bank mergers

ISBN :

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Book Description

We examine a large panel of more than 100 banks from Argentina to study the effects of bank consolidation on performance between December 1995 and December 2000, a period of heavy bank consolidation and relative calm. Overall, we find a positive and significant effect of bank consolidation on bank performance. Bank returns increase with consolidation, and insolvency risk is reduced. Additionally, the study suggests that mergers and privatizations have a beneficial effect on bank returns. The effects of a bank acquisition on return on equity is, however, negative. Acquisitions do not seem to have any effect on risk-adjusted returns. The study also finds that a bank's insolvency risk is reduced significantly through mergers and privatization and is unrelated to bank acquisitions.



On Bank Consolidation in a Currency Union

Author : Fabio Di Vittorio

Publisher : International Monetary Fund

Page : 26 pages

File Size : 42,57 MB

Release : 2018-04-24

Category : Business & Economics

ISBN : 1484352750

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Book Description

The paper focuses on the impact of diversification on bank performance and how consolidation through mergers and acquisitions (M&A) affects the banking sector’s stability in the Eastern Caribbean Currency Union (ECCU). The paper finds that a lower level of loan portfolio diversification explains higher non-performing loans and earnings volatility of indigenous banks, as compared to foreign competitors in the ECCU. We then simulate bank mergers both within and across ECCU countries by combining individual banks’ balance sheets. The simulation shows that a typical indigenous bank could better diversify against its idiosyncratic risk by merging with other banks across the border. In addition, we point out that M&A, leading to a more asymmetric banking sector, may increase systemic risk.





Bank Consolidation and Performance

Author : Ritu Basu

Publisher :

Page : 33 pages

File Size : 31,29 MB

Release : 2006

Category :

ISBN :

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Book Description

We examine a large panel of more than 100 banks from Argentina to study the effects of bank consolidation on performance between December 1995 and December 2000, a period of heavy bank consolidation and relative calm. Overall, we find a positive and significant effect of bank consolidation on bank performance. Bank returns increase with consolidation, and insolvency risk is reduced. Additionally, the study suggests that mergers and privatizations have a beneficial effect on bank returns. The effects of a bank acquisition on return on equity is, however, negative. Acquisitions do not seem to have any effect on risk-adjusted returns. The study also finds that a bank`s insolvency risk is reduced significantly through mergers and privatization and is unrelated to bank acquisitions.



Bank Mergers & Acquisitions

Author : Yakov Amihud

Publisher : Springer Science & Business Media

Page : 268 pages

File Size : 17,93 MB

Release : 1998-02-28

Category : Business & Economics

ISBN : 9780792399759

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Book Description

As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.



Bank Consolidation, Internationalization, and Conglomeration

Author : Mr.Gianni De Nicolo

Publisher : International Monetary Fund

Page : 46 pages

File Size : 48,42 MB

Release : 2003-07-01

Category : Business & Economics

ISBN : 1451857608

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Book Description

This paper documents global trends in bank activity, consolidation, internationalization, and financial firm conglomeration, and explores the extent to which financial firm risk and systemic risk potential in banking are related to consolidation and conglomeration. We find that while there is a substantial upward trend in conglomeration globally, consolidation and internationalization exhibit uneven patterns across world regions. Trends in consolidation and conglomeration indicate increased risk profiles for large, conglomerate financial firms, and higher levels of systemic risk potential for more concentrated banking systems. We outline research directions aimed at explaining why bank consolidation and conglomeration do not necessarily yield either safer financial firms or more resilient banking systems.



The Economic & Profitability Impact of Mergers & Acquisitions among Banks in Lebanon

Author : Rami Saleh

Publisher : GRIN Verlag

Page : 97 pages

File Size : 18,67 MB

Release : 2013-05-08

Category : Business & Economics

ISBN : 3656426880

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Book Description

Doctoral Thesis / Dissertation from the year 2009 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: A, , language: English, abstract: A study of the impact of mergers and acquisitions on the economic profitability among Banks in Lebanon



M & As

Author : Oluseyi Aju

Publisher : LAP Lambert Academic Publishing

Page : 132 pages

File Size : 18,33 MB

Release : 2013

Category :

ISBN : 9783659435508

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Book Description

This work reviews conceptual perspectives on mergers and acquisitions, and its impact on the Nigerian banking consolidation program. Through an exploratory research approach that relied on secondary data, relevant financial ratios were used in analyzing a five-year (2002-2007) financial statement of Skye Bank and its post-merger share price movement. An unsteady post-merger profitability was initially evident between year 2004 and 2005, however, the study shows a fairly substantial improvement in the overall financial performance of Skye Bank over the period of five years covered in the analysis. This study further analyzes relevant factors that could have enhanced an improved or unimproved post merger performance of Skye Bank. A performance summary of Skye Bank between 2008 and 2009 was also explored. The study concludes with appropriate recommendations.



Assessing the Performance of Banking M&As in Europe

Author : Rym Ayadi

Publisher :

Page : 88 pages

File Size : 27,9 MB

Release : 2007

Category : Business & Economics

ISBN :

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Book Description

The European banking sector consolidated at a rapid pace throughout the 1990s. It was pushed along by several concurrent factors: the deregulation of banking activities, the further integration of the European financial market, financial globalization, technological and financial innovations, the imperative of value creation, and the introduction of the euro. Far from slowing down, this consolidation process is expected to accelerate over the coming years. This book examines the performance of mergers and acquisitions (M&As) in the banking industry in Europe and introduces a new conceptual approach for assessing the phenomenon. The results show that the economic and financial performance of a banking M&A depends on its underlying strategy. This strategy is based on two factors: a bank's initial activities and its geographical reach. The book demonstrates that achieving the optimal combination of these two factors is critical to the success or failure of an M&A.