CAN MERGERS AND ACQUISITIONS IMPROVE BANKING INDUSTRY?

The new global M&A landscape reveals the reconfiguration of the banking sector through mergers and acquisitions (M&As). Structural changes in this industry, under different economic and regulatory conditions, matters a great deal to the shareholders, top managers, and employees of the banks involved. But it also matters due to the fact that its performance affects all economic sectors and the fate of global economies. In the last two decades, banks have expanded their business to serve global customers. It is vital to know how banks are now reevaluating their M&A strategies based on the current global economic situation. The banking M&As experiences and practices that have been well proven in the traditional economic conditions are hitting their limitations in the global world. This paper contributes to the management literature by analyzing the underlying drivers of the M&As process, the economic concepts and strategic precepts used to justify M&A deals, and the synergy potential of M&As.