Bank Mergers Research Articles

Do Mergers & Acquisitions Add Value to the Shareholders: Evidence from Merger of State Bank of India and Its Five Associates

Do Mergers & Acquisitions Add Value to the Shareholders: Evidence from Merger of State Bank of India and Its Five Associates

ОСОБЛИВОСТІ РОЗВИТКУ БАНКІВСЬКОЇ ДІЯЛЬНОСТІ УКРАЇНАХ ЄС

The article analyzes the peculiarity of the development of banking activity in EU countries as one of the elements of financial stability in the conditions of harmonization and joint regulation. In the article is shown impact of digital transformation, modern strategies and banking business models on the need to adapt the banking sector to new conditions. The leading role of the banking sector in stimulating long-term financing is determined, as the bank-ing sector affects the economic and social development of European countries. The banking sector is one of the factors supporting the economic growth of European countries and the EU in general. The types of banks are disclosed, where a significant role is assigned to the new wave of their development –digital banks. The place and role of state banks and development institutions, investment banks is revealed, special attention is paid to digital banks, which have significantly changed the banking industry. It was noted that the market of digital banks has a positive trend towards their growth in the EU. Emphasis is placed on the fact that technologies are changing the development of banking activity in European countries and the banking sec-tor. The trend of consolidation and concentration due to bank mergers and acquisitions is high-lighted, which is the most visible sign of this process. It is noted that the quality of banking services today has become one of the strategic changes in competition on the European mar-ket. The indicators of the development of the banking sector were analyzed, and their trends were determined, namely, the decrease in the number of banks, employees in credit organiza-tions, and the decrease in branches and subsidiaries of credit institutions in the EU. The author focused heavily on deposits in EU banks as a share of total bank assets, based on which an analysis of the dynamics of changes in the total volume of deposits in EU banks was carried out with further analysis of trend lines –using linear, logarithmic, polynomial and power func-tions. The author has forecasted deposits in EU banks according to the most likely scenario of the development of economic events, pessimistic and optimistic. It has been proven that trends have a gradual upward trend for the future

The heterogeneous effects of bank mergers and acquisitions on credit to firms: evidence from Italian macro-regions

The heterogeneous effects of bank mergers and acquisitions on credit to firms: evidence from Italian macro-regions

Financial Technology behind banks and institutional reform science: With Special Emphasis of Case of Bank of Baroda, Vijay Bank and Dena Bank Merger

Financial Technology behind banks and institutional reform science: With Special Emphasis of Case of Bank of Baroda, Vijay Bank and Dena Bank Merger

Impact and Effort of Legal Protection for Stakeholders Due to Merger Activities Islamic Banks in Indonesia

<p>Mechanism of the merger of 3 (three) state-owned banks, PT. BRI Syariah, PT. BNI Syariah and Bank Syariah Mandiri became Bank Syariah Indonesia involving many stakeholders. Preventive measures need to be implemented to avoid violating the rules of Law and principles of corporate governance and harming stakeholders. This research aims to know the steps of merger activities against the three state-owned Islamic banks and provide information about the impact faced by stakeholders and legal protection of interested parties, especially on minority shareholders, employees/employees of Islamic banks, and customers/business partners. This research is a sociological juridical study using qualitative descriptive methods. The conclusion is to optimize legal protection for interested parties for merger activities in the banking field. Some things need to be realized. Some of these include the preparation of guidelines about sharia bank mergers made by the Financial Services Authority and the National Sharia Council for uniformity under sharia principles. The need for data migration schemes so that customers are not harmed due to system errors due to data integration and the need to harmonize employee performance with bank merger results.</p>

The Effect Of Innovation To Increase Growth Islamic Banking: Comparison of Islamic Banking Growth In Indonesia and Pakistan

<p><strong><em>This article aims to see and compare the development of Islamic banking in Pakistan and Indonesia, with innovation indicators as the primary comparative justification. This study uses quantitative justification on available secondary data related to the growth of Islamic banking and qualitative justification that compares the impact of innovation on the development of these banking. The essential findings are that Islamic banking in Indonesia has very rapid growth compared to Pakistan, which incidentally has operated Islamic banking for a longer time. There are several reasons for these findings, including the population and distribution of Indonesia's territory, which is much larger than Pakistan. However, today's banking challenges are more widely accepted by Indonesian Islamic banking, where technological factors heavily influence growth. Therefore growth occurs by adapting innovations in banking organizations in Indonesia. Innovation is carried out by applying technology in banking business processes and strategic actions, such as the merger of Islamic banks to form the strength of Indonesia's most prominent Islamic bank.</em></strong><strong></strong></p><p> </p><strong>Keywords<em>:</em> Islamic Banking, Innovation, Pakistan Islamic Banking, Indonesian Islamic Banking.</strong><p> </p>

Effects of mergers in financial performance of Nepalese Commercial Banks

Purpose- This paper attempts to evaluate the synergistic effect of the merger on financial performance, market share, and the wealth of the shareholders of the selected BFIs. Methodology- Two cases of mergers of commercial banks have been taken as samples for the study. First is the merger between Prabhu Bank Limited and Grand Bank Limited (forming Prabhu Bank Limited) and second is the merger between Lumbini Bank Limited and Bank of Kathmandu Limited (forming Bank of Kathmandu Limited). Both the mergers happened in 2016. To analyze the mentioned variables of the selected BFIs, pre-merger (2011–2015) and post-merger (2016–2020) data have been compared using a t-test and regression analysis. Findings- The result of the study reveals that there is a significant relationship between financial performance and shareholder value and the merger, whereas there is no relationship between the market share of the BFIs and the merger. Practical implication- The study concludes that to achieve improved post-merger financial efficiency and reap the benefits of an improved financial position, merged BFIs should be more aggressive in their profit drive and maintain better asset qualities. Originality/ Value- This study can become a foundation for future studies in the Nepalese context of the merger of BFIs.

Analisis Perbandingan Harga Saham PT. Bank Syariah Indonesia Tbk Sebelum dan Sesudah Merger

Merger is one of the business processes that can increase asset capitalization and improve the Company's financial performance. On 1 February 2021, 3 State-Owned Sharia Banks were merged among PT BRI Syariah, PT Mandiri Syariah and PT BNI Syariah. Merger is a business strategy carried out between the 3 Sharia Banks in order to improve financial performance. The purpose of the research is to compare analysis before and after the merger of PT Bank Syariah Indonesia by comparing the average price of this company's stocks in the period 30 days before and 30 days after the bank merger. The effective date of the merger of the 3 BUMN Syariah Banks is 1 February 2021. The research method is a quantitative approach with comparative descriptive research by comparing the stock prices of PT. Bank Syariah Indonesia Tbk. in the period of before and after the merger. The Stock Price of PT Bank Syariah Indonesia Tbk. taken from the Google Finance website is the daily closing price data for the period 30 days before and 30 days after the merger date of PT. Bank Syariah Indonesia Tbk, which is 1 February 2021. The results showed that there was a significant increase, where the average share price of PT. Bank Syariah Indonesia Tbk. before the merger of IDR 1,785.38 increased to IDR 2,067.19 after the merger. The implementation of the merger at Bank Syariah Mandiri, BRI Syariah and BNI Syariah had a positive impact on financial performance as evidenced by the increase in share prices after the merger process of PT. Bank Syariah Indonesia Tbk

Analysis Of Structure – Conduct - Performance (SCP) on The Merger of State-Owned Enterprise Islamic Banks Based on The Assets Value

Merger is the merging of two or more companies so that the company becomes better and creates new dynamics. Besides that, it creates efficiency and increases market share, expands the business that is run and has stronger competitiveness. This is the goal of the merger of 3 state-owned Islamic banks including BRI Syariah, BNI Syariah and Bank Mandiri Syariah to become Bank Syariah Indonesia (BSI). Bank mergers are deemed necessary in order to create a better bank which in the end can have a significant and positive impact on a banking system that is healthy, efficient, resilient and able to compete in the increasingly tight and competitive global economy and free market. This series of mergers clearly reduced the number of banks. This raises important issues, including whether the smaller number of banks has reduced or even increased the concentration of the banking industry. In addition, it is also interesting to analyze the impact of the merger on the level of banking competition. This study aims to assess the impact of Islamic banking merger policies on market conditions. After the merger, will the market become more competitive or will it become more concentrated? The research method used is literature study. The structure variable is seen from the total assets and market share, the conduct variable is seen through the merger policy. Meanwhile, in analyzing the Performance variable, it is measured through Profit. After analyzing the structure-conduct performance (SCP) by assessing the impact of the sharia banking merger policy, it will be seen that the market is becoming more concentrated or becoming more competitive.

Reaksi Pasar Atas Peristiwa Merger Bank Syariah BUMN (Studi Peristiwa BRI Syariah)

This study aims to determine the market reaction to the merger of state-owned Islamic banks (BNI Syariah, BRI Syariah and Syariah Mandiri) into Bank Syariah Indonesia (BSI). The market reaction is reflected in the abnormal return, trading volume activity, and security return variability. This research belongs to event study used in this study is secondary data obtained from financial reports published by BRI Syariah. The sample used in this study was BRI Syariah and the data analysis technique used the Sample Paired T-Test and the Wilcoxon Signed Rank Test. The results showed that there was no difference between abnormal returns and trading volume activity before and after the Islamic bank merger event. On the other hand, there are differences in security return variability before and after the Islamic bank merger event.

Mergers and bank branches: two decades of evidence from the USA

In recent decades, the US bank market has been exposed to several waves of mergers, resulting in concerns about branch presence and consumer access to financial services. This paper examines the effects of bank mergers on branch density in the period 2000–2020. To do so, we use panel regressions and matching techniques at the census tract level to study the impact of inter- and intrastate mergers before and after the Great Recession of 2007. To generate plausible exogenous variation for mergers, our analysis focuses on transactions involving large entities, and we consider the within-tract variation in exposure to mergers. A comparison of exposed and unexposed tracts shows that in the period under study each merger reduced branch density by around 3%. Moreover, interstate mergers reduced branch density at the tract level across the whole period but had an expansionary effect on the number of branches at the county level before the crisis. Intrastate mergers, in contrast, had a consolidation effect across the whole period, an impact that was more intense in rural tracts and in tracts where merging entities operated overlapping branch networks. Finally, we show that the reduction of bank branches was stronger in tracts with a relatively higher penetration of broadband Internet services, but we find no evidence that the adoption of FinTech services intensified branch closures.

The Merger of State-Owned Enterprises of Bank Syariah Indonesia in Positive Legal Review and Maqashid Syariah

As a form of the government's participation in paying attention to and developing the market share of the Islamic economy in Indonesia, the three state-owned Islamic banks (BNI Syariah, BRI Syariah, and Mandiri Syariah) were merged into one. With the hope of being able to expand the Islamic banking market both nationally and internationally. This study aims to examine the merger of the three state-owned Islamic banks in terms of positive Law in it and to review it from the perspective of Maqashid sharia. This study uses a qualitative descriptive method by using secondary data obtained through a literature review with references from books, journals, and other literature related to this research. The results of this study indicate that the merger of state-owned banks, Bank Syariah Indonesia, is on the right track, legally positive, and in terms of Maqashid sharia. This is a step and effort by the government in maintaining and developing sharia market share in line with the maqashid sharia principle; keep and or attract good and keep away bad. In addition, some of them are launching a literacy program in understanding the concept of Islamic economics for the community so that the noble values ​​of Islam are maintained and run in banking economic activities. However, it still requires other developments in the aspect of justice that must be initiated by BSI, of course, by continuing to carry the message of sharia in it.

The Impact of Merger Bank Syariah Indonesia Policy on The Work Ethic at BSI Megamas Boulevard Manado

The Indonesian Sharia Bank merger policy is a major momentum in the development of Islamic banking and finance in Indonesia. This study aimed to determine the impact of the merger policy of Bank Syariah Indonesia on work ethic. By using qualitative research methods, this study seeks to carefully describe the impact of the merger of Bank Syariah Indonesia on the work ethic of BSI employees in the Megamas Boulevard area of ​​Manado. The findings of this study reveal that BSI's merger policy has a positive impact on several aspects of the 6 out of 8 professional work ethos mentioned by Johnson, Mr. Ethos in Indonesia, namely in the aspect of Work is Trust, Work is Actualization, Work is Art, Work is Honor, Work is a Call, and Work is Service. This certainly indicates that the merger policy carried out by BSI has resulted in increased interest, enthusiasm, and work ethic among employees at BSI Megamas Boulevard Manado. The other 2 ethos, namely Work is Grace and Work is Worship, did not significantly impact changes related to the work ethic of BSI employees. So it can be concluded that the overall merger policy of Bank Syariah Indonesia has a positive impact on the work ethic of BSI employees in Megamas Boulevard Manado.

Changing Scenario of Bad Assets in Public Sector Banks in India

The Government of India has merged during last two years thirteen public sector banks (PSBs) into five leaving their total number to eleven in addition to State Bank of India which earlier witnessed merger of associate banks and Bhartiya Mahila Bank in it. This major restructuring has been undertaken by the government with the stated objective of making PSBs stronger and internationally competitive. The rationale is that bigger banks can face challenges of the modern day world, out of which raising of capital and upgradation of banking technology are the most important. This restructuring exercise came at a time when many of these PSBs faced challenges of survival because of huge rise in their bad assets (non-performing loans). But for massive recapitalization many of these banks would have faced insolvency like situation. The present circumstances are still too uncertain to guarantee a return of these banks to good financial health as these continue to face twin challenges of capitalization and reduction of non-performing loans commonly known as Non-Performing Assets (NPAs) in India.

Analisis Persepsi Nasabah terhadap Merger Bank Syariah Indonesia

The announcement of the merger of Bank Syariah Indonesia caused customers to ask questions about various problems that overshadowed it, including problems with the future of the bank, products, services and other facilities. This study was conducted to reveal how the customer's perception of the merger of Indonesian Sharia Banks in Pati Regency with the aim of knowing the customer's perception of the merger of Indonesian Sharia Banks in Pati Regency. This research is a descriptive qualitative research with data taken from questionnaires and interviews. The analysis model uses the Miles and Huberman model with the results that the customer's positive perception of this merger is to support Islamic economic growth in the banking sector, because it is sharia / interest free, there are no service difficulties, states that they remain a customer of Bank Syariah Indonesia and the negative perception of this merger is all offices are located far away and have difficulty in service.

The effect of board size on shareholder value: Evidence from bank mergers and acquisitions

This study examines the effect of board size on the economic impact of bank mergers and acquisitions (M&A) in the US. Using a hand-collected dataset of 508 M&A between 2012 and 2018, we find that board size is negatively related to acquirer excess returns. In an additional analysis, we show that large boards have positive value implications for banks that combine the CEO and chairman roles as well as for large banks. Our findings indicate that a “one-size-fits-all” approach to board size is not necessarily in the interests of shareholders; instead, a more flexible and proactive formulation is needed.

Taking no chances: Lender concentration and corporate acquisitions

This paper shows that exogenous increases in a firm’s lender concentration induced by bank mergers significantly reduce its propensity to pursue acquisitions, particularly large public deals. The effect is driven by mergers involving lead lenders, and mainly pronounced when lenders have less bargaining power ex-ante. This suggests that the result can be explained by increased lead-lender bargaining power beyond contractual provisions. Moreover, lender mergers reduce shareholder-value-enhancing acquisitions as well as value-destroying ones. Deals that do happen are more likely to target cash-rich firms with stable cash flows, while creating no additional shareholder value. The evidence suggests that managers tend to behave more conservatively amid higher lender concentration, sometimes at the expense of forgoing good growth opportunities for shareholders.

Kebijakan Merger Bank pada Perbankan Syariah: Studi Bibliometrik dan Perspektif Kritis

This study intends to map the growth of Islamic bank merger research in indexed journals. The Islamic Merger Bank Policy was found in 39 papers indexed in national and international journals. The method employed is Bibliometric Analysis using VOSViewer. The results showed that 21 papers (53.85%) were published in 2021, 39 articles (100%) were authored by several authors or collaboration, and no article was written by a single author. The most popular research approaches are qualitative literature review and quantitative Panel Data Regression, each with 6 article titles. There were 43 citations. Indonesia is the most researched country, with 25 articles (64.10%), and the most common keywords are Islamic Bank, Research, Study, and Indonesia.

The effect of potential mergers on liquidity creation and efficiency in Iranian banks

Merger is a strategic measure taken by financial institutions to improve managerial performance. In fact, banks are always seeking to consolidate their actions in the market to converge to the optimum level, achieving integration and enabling banks to reduce their costs and, consequently, improve efficiency at the allocation and productivity levels. Many countries have experience of mergers, but the situation of banking mergers in Iran does not have a definite result to be judged. Therefore, considering the importance of the subject, the purpose of this study is to investigate the efficiency and liquidity situation in the conditions before and after merging with a set of 32 banks in the period 2020-2005 with the approach of Berger and Bowman (2008) and two-stage data envelopment analysis. In this regard, seven scenarios (including 6 public-private mergers and the actual merger of Sepah Bank) were considered. The average liquidity creation index was obtained in the period before the merger and after the merger, the liquidity increased, which could be due to the increase in banks' capital. Also, the performance after the merger increases in 6 scenarios and only one scenario shows a decrease; therefore, while merger is one of the ways to improve the efficiency of banks, choosing the right partner is one of the important components of merger success.

Efisiensi Keputusan Merger Tiga Bank Syariah Di Indonesia Pada Masa Pandemi Covid-19 (Studi Di Bsi Kc Bengkulu Panorama)

Merger is one of the strategies taken by the company to develop and grow the company. In addition, mergers can create a healthy, efficient and competitive company system. The merger decision was made by the three largest state-owned Islamic banks in Indonesia, namely Bank Rakyat Indonesia Syariah (BRIS), Bank Negara Indonesia Syariah (BNIS), and Bank Syariah Mandiri (BSM). This is a decision that aims to encourage larger Islamic banks so that they can enter the global market and become a catalyst for Islamic economic growth in Indonesia. The decision made during the COVID-19 pandemic is the main step in the context of strengthening the Sharia economy in Indonesia, which is being suppressed by the COVID-19 pandemic. The merger of state-owned Islamic banks will make the merger of Islamic banking better and more efficient with indicators of increasing market share for Islamic banking in Indonesia. With the aim of providing an overview of the impacts as well as opportunities and challenges that will arise from the BSI merger decision during the Covid-19 pandemic at BSI KC Bengkulu Panorama. The merging of three state-owned Islamic banks has an impact on various aspects. This impact occurs on customers, employees and the community. Mergers also have an opportunity, namely increasing assets in banks for merger participants and will expand market penetration. On the other hand, mergers also pose many challenges considering that the COVID-19 has shaken the economy in Indonesia. This study uses a qualitative descriptive research method through interviews, documentation, field research and library research so that it can provide information to solve the problems encountered.