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M&As in the Process of Banking Consolidation – Preliminary Evidence from Vietnam

  • Xuan Vinh Vo EMAIL logo
Published/Copyright: March 30, 2018
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Abstract

The conduct of Mergers and Acquisitions (M&As) of commercial banks is an important activity in order to fulfill the strategic objectives of all banks involved. However, M&As activities in Vietnamese banking sector have unique characteristics because most of the recent deals are to consolidate the system. These are arranged by central bank and other financial regulatory authority bodies with the purpose of achieving a prudential financial system. This article examines the effects of M&As activities in banking sector by analyzing profits and risks of commercial banks pre and post M&As in the recent liberalization episode in Vietnam. The preliminary result suggests that most of commercial banks experience lower profits and higher credit risks after M&As. Hence, it seems that most of banks face more difficulties after M&As.

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Published Online: 2018-03-30

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