Merger and Acquisition in Nigerian Banks

The banking industry has undergone major upheaval in recent years, largely due to the lingering recessionary environment and increased regulatory environment. Many banks have failed in the face of such tough environmental conditions. These conditions

One of the primary factors that can be attributed as to have led the recent financial crisis is the financial deregulation allowing financial institutions a lot of freedom in the way they operated. The manifestation of this was seen in the form of:

As for economic downturn, the lack of regulation and the failures of banks were both caused by the Gulf Wars. The United States government was too focused upon military conflict outside of its borders to pay attention to the loopholes that banks were using to make unwise lending decisions.

The largest banking merger in Australia happened by Westpac merging with St. George Bank limited in 2008,which was dramatically decrease impact of the global recession on Westpac’s balance sheet. St. George Bank was one part of Westpac divisions. Furthermore, Westpac turned to be one of authorized deposit-taking institution (ADI) in 2010 (Westpac, n.d.).

In 2008 the U.S in the midst of economic crisis. Several of the biggest banks were on the verge

The financial crisis of 2008 did not arise by chance. The meltdown was precipitated by systematic striping away of the New Deal era policies of bank regulation. Most notable of these deregulatory acts was that of the Gramm-Leach-Bliley Act of 1999. This bill repealed the legislation which held commercial banks and investment banks separate. As the beginning of the 21 century approached many bankers clamored for an end to the policy of the “firewall” between Investment and commercial banks. Gramm-Leach-Bliley Act of 1999, sought to create more competition in the financial services industry. The policy, however, lead to the conglomeration of many corporate entities as banks had the capital to invest (in the form of consumer deposits) in a

The roots of the crash trace back to U.S. regulatory and governmental activity. Thirty years prior, at the birth of financialization and Ronald Reagan’s Administration, certain policies started to favor banks’ activities, particularly with respect to the practical dissolution of antitrust laws during the time and a general

Extensive research has determined that the banking industry is in an unstable state. The industry’s profits have

Title I sets a closer look and evaluation of domestics and international financial institutions to achieve better control over the financial stability and finding better and more efficient ways to overlook the of the country finding more efficient ways. Monitor.

The merger activities have presented upwards or downwards trends and created some specific merger waves. A series of merger waves has been witnessed to in numerous countries. For example, the merger waves of the US, with a worldwide economic impact, have been characterized by five major waves or periods of typical merger activities process (Drogalas et al, 2006).

Any M&A transaction in the financial crisis is the evidence of the fact that the participants find serious advantages of its

As a whole, the regulation of banking institutions and financial markets are considered as a debatable issue. Banking is considerably the most deeply regulated industry within the financial sector which is also one of the heavily regulated sectors in the economy. Many financial systems are disposed to periods of lack of stability.

In modern business environments, there are increasing dynamics encouraging firms to utilize mergers and acquisitions to resolve resource. In dynamic business environments, the value of existing resources is subject to erosion, in some instances fast erosion. Consequently, firms continuously respond to changing environmental conditions by upgrading their resources and capabilities via renewal, acquisition, redeployment, and recombination. Mergers and acquisitions provide firms with a practical tool to close their resource gaps, allowing for a much faster reconfiguration of the product mix toward high-profit products than, for example, internal development (Eschen and Bresser, 2005). The need for corporate firms to achieve competitive advantage in a highly competitive global environment has necessitated the implementation of innovative strategies, one of them being mergers and acquisitions (Rizvi, 2010).

With an average of 9.3% annual GDP growth, China has become the world’s largest and most powerful emerging economy (Shan, YG & Xu, L 2012, p.115). China has a bank-based economy, which signposts that the banking system in the country controls the majority of its economic resources. Before the late 1970s, the banking sector in China was controlled by a monopoly bank - the People’s Bank of China (PBC) (Sáez, L 2001, p.237). The gradual reforms in the industry since then separated several duties and functions from the PBC, which resulted in a number of industry-specific commercial banks: the Bank of China (BOC), the Industrial and Commercial Bank of China (ICBC), the China Construction Bank (CCB) and the Agricultural Bank of

Over the past decade the banking system has globalized rapidly in foreign ownership of bank assets. Gyongyi Loranth, a