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Bank Mergers and Acquisitions Trends Under Recent Crises
Subject area: Management and Commerce · Area of research: Finance
Abstract
Financial crisis changes economists' rules and perspectives each time it hits the global economy. The catastrophic consequences affect all economic sectors and change conventional policy solutions. Mergers and acquisitions as economic activities have regulations and trends in normal economic times. However, in recent crises, mergers and acquisitions transactions indicate various behaviors and trends in banking institutions. By collecting mergers and acquisitions data of banks from authenticated sources and analyzing it based on crisis time. The current study covered the financial crises of black Monday in 1987, the Asian stock market crashes in 1997, the Dotcom bubble in 2002, and mortgage loans in 2009. The significant findings are that approximately 80% of crisis boost mergers and acquisitions transactions, specifically in countries where the crisis originated. On the other hand, the rest where mergers and acquisitions decline under crisis is attributed to going most deteriorating banks into liquidation or nationalization, causing a decline in the number of banks that are candidates to acquire under the effect of the crisis.
Keywords
Merger and Acquisition, Financial Crisis, Economic Policy, Banks, Transactions.
How to cite this paper
@article{1703790,
author = {Mohammed Faez Hasan},
title = {Bank Mergers and Acquisitions Trends Under Recent Crises},
journal = {Iconic Research And Engineering Journals},
year = {2022},
volume = {6},
number = {2},
pages = {233-238},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1703790.pdf},
abstract = {Financial crisis changes economists' rules and perspectives each time it hits the global economy. The catastrophic consequences affect all economic sectors and change conventional policy solutions. Mergers and acquisitions as economic activities have regulations and trends in normal economic times. However, in recent crises, mergers and acquisitions transactions indicate various behaviors and trends in banking institutions. By collecting mergers and acquisitions data of banks from authenticated sources and analyzing it based on crisis time. The current study covered the financial crises of black Monday in 1987, the Asian stock market crashes in 1997, the Dotcom bubble in 2002, and mortgage loans in 2009. The significant findings are that approximately 80% of crisis boost mergers and acquisitions transactions, specifically in countries where the crisis originated. On the other hand, the rest where mergers and acquisitions decline under crisis is attributed to going most deteriorating banks into liquidation or nationalization, causing a decline in the number of banks that are candidates to acquire under the effect of the crisis.},
keywords = {Merger and Acquisition, Financial Crisis, Economic Policy, Banks, Transactions.},
month = {August},
}