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.
References
Amel, D., C. Barnes, F. Panetta, and C. Salleo. 2004. “Consolidation and Efficiency in the Financial Sector: A Review of the International Evidence.” Journal of Banking & Finance 28 (10): 2493–2519.10.1016/j.jbankfin.2003.10.013Search in Google Scholar
Berger, A. N. 1998. “The Efficiency Effects of Bank Mergers and Acquisition: A Preliminary Look at the 1990s Data.” In Bank Mergers & Acquisitions, edited by Y. Amihud and G. Miller, Vol. 3, 79–111 (The New York University Salomon Center Series on Financial Markets and Institutions). Boston, MA: Springer.10.1007/978-1-4757-2799-9_5Search in Google Scholar
Dunn, J. K., V. J. Intintoli, and J. J. McNutt. 2015. “An Examination of Non-Government-Assisted US Commercial Bank Mergers During the Financial Crisis.” Journal of Economics and Business 77: 16–41.10.1016/j.jeconbus.2014.09.002Search in Google Scholar
Halkos, G. E., and N. G. Tzeremes. 2013. “Estimating the Degree of Operating Efficiency Gains from a Potential Bank Merger and Acquisition: A DEA Bootstrapped Approach.” Journal of Banking & Finance 37 (5): 1658–1668.10.1016/j.jbankfin.2012.12.009Search in Google Scholar
Hughes, J. P., W. W. Lang, L. J. Mester, and C.-G. Moon. 1999. “The Dollars and Sense of Bank Consolidation.” Journal of Banking & Finance 23 (2): 291–324.10.1016/S0378-4266(98)00088-0Search in Google Scholar
Nicoló, G. D., P. Bartholomew, J. Zaman, and M. Zephirin. 2004. “Bank Consolidation, Internationalization, and Conglomeration: Trends and Implications for Financial Risk.” Financial Markets, Institutions & Instruments 13 (4): 173–217.10.1111/j.0963-8008.2004.00076.xSearch in Google Scholar
Uhde, A., and U. Heimeshoff. 2009. “Consolidation in Banking and Financial Stability in Europe: Empirical Evidence.” Journal of Banking & Finance 33 (7): 1299–1311.10.1016/j.jbankfin.2009.01.006Search in Google Scholar
Vennet, R. V. 1996. “The Effect of Mergers and Acquisitions on the Efficiency and Profitability of EC Credit Institutions.” Journal of Banking & Finance 20 (9): 1531–1558.10.1016/S0378-4266(96)00014-3Search in Google Scholar
©2018 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Research Articles
- Responses of Chinese Laws to Ambush Marketing
- The Single Window and the TFA: ASEAN’s Best Chance at a Common Rule of Law
- M&As in the Process of Banking Consolidation – Preliminary Evidence from Vietnam
- Corruption in Civil Litigation System: An Approach to Judicial Reform in Bangladesh
- Cultural Intolerance and Aversion to Foreign Judgments in the American States
Articles in the same Issue
- Research Articles
- Responses of Chinese Laws to Ambush Marketing
- The Single Window and the TFA: ASEAN’s Best Chance at a Common Rule of Law
- M&As in the Process of Banking Consolidation – Preliminary Evidence from Vietnam
- Corruption in Civil Litigation System: An Approach to Judicial Reform in Bangladesh
- Cultural Intolerance and Aversion to Foreign Judgments in the American States