Download or read book Consolidation in Indian Banking Sector Evidence and Challenges Ahead written by Brajesh Tiwari and published by . This book was released on 2013-03-03 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Global mantra Liberalization, Privatization and Globalization (LPG) process which was started in early 1990s has brought so many changes in the economic scene of the country. This process of economic reforms has brought competition not only from India but also from Overseas. In the corporate world it is said if you can't beat your competitor then go with them i.e. merge your company with your rival or take them over. So all it boils down to is the survival of the fittest. This process helps in attaining greater market share, acquiring additional brands, cannibalizing competing brands, realizing improved infrastructure, creating new synergies, and capitalizing on efficiencies and economies of scale or to globalize in the shortest span of time. Banking system is deemed as the bloodline of any economy and banks are trustees of public money. Therefore, its depositors have higher stake in welfare and growth of banks than its shareholders. The failure of a bank has more widespread implications than a failure of a manufacturing company. The banking sector reforms, introduced in the early nineties and continued since then, from part of the overall economic reform programme aimed at improving the competitiveness and efficiency of the economic system. The banking reforms, similarly, were also aimed at making banks more efficient and viable. Because of these reforms the capital adequacy of the Indian banks is now on par with international standards. Similarly, the level of net non-performing assets has come down to very manageable levels. An issue that is in the forefront of banking reforms currently is that of bank consolidation. To meet the challenges of global economy and to face increased global competition, Indian banks are changing their strategic focus and re-orienting their operations though restructuring processes to achieve the efficiencies required to survive and integrate into global economy. Prior to 1999, the amalgamations of banks were primarily triggered by the weak financials of the banks being merged, whereas in the post-1999 period, there have also been mergers between healthy banks. However, merger of public sector healthy banks have not taken place till now. Consolidation will provide Indian banks the 'size advantage' that most foreign banks have. Recent reports on banking sector often indicate that India is slowly but surely moving from a regime of `large number of small banks' to `small number of large banks'. The Government of India and RBI has also mentioned at several occasions that an early consolidation in banking industry is needed. But before banks go in for mergers, they need to chalk out a detailed plan on how to tackle challenges such as technology integration, HR management, and many other issues into consideration. This Book "Consolidation in Indian Banking Sector: Evidence and Challenges Ahead" is a modest attempt to cover all important issues regarding M&A in Indian Banking Sector. The whole study is divided into five chapters. The first chapter: Introduction, is introductory in nature briefly traces out the evolution of Mergers and Acquisitions (M&A) in India in banking sector. The second chapter: Review of Literature; focuses on the review of related studies of mergers and acquisitions undertaken by different scholars and researchers. The third chapter: briefly discusses M&A activity in Indian Banking Industry and also covers various laws related to M&A. The fourth chapter: Mergers and Acquisitions in the Banking Industry: An Analysis -I; makes a comparison of actual and predicted values of selected variables in banks under study. With the help of statistical tools the effectiveness of M&A has been tested. The fifth chapter: Mergers and Acquisitions in the Banking Industry: An Analysis -II; analyses the performance of the selected banks by using various financial ratios.

Download or read book The Nigerian Banking Sector Reforms written by S. Apati and published by Springer. This book was released on 2015-12-11 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is the first comprehensive book on the politics and economics of financial sector consolidation in an emerging market in West Africa. It draws on the author's twenty years experience working with multinationals in this oil-rich zone, to address key issues and examine banking reform in one of the world's fastest-growing economies.

Download or read book Bank Consolidation Efficiency and Profitability in Italy written by Anke Weber and published by International Monetary Fund. This book was released on 2017-07-27 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible. A bottom-up analysis of 386 Italian banks suggests that while profitability is expected to improve as the economy gradually recovers, operational efficiency gains are nonetheless needed to restore large parts of the banking system to healthy profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely to be most as part of a comprehensive strategy that includes complementary reforms to clean up bank balance sheets. Cross-country experience indicates that efficiency gains are more likely to follow consolidations where careful viability analyses are conducted of the synergies and operational improvements that can be achieved.

Download or read book Banking Reforms in India written by T R Bishnoi and published by Springer. This book was released on 2017-06-21 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a historical evaluation of banking reforms and structural changes in India over the past 25 years. Chapters cover issues in consolidation and restructuring, competition and concentration, performance evaluation in terms of cost efficiency and productivity, profitability, non-performing assets and technology use. The authors use specific regression models to measure the impact of these reforms on bank performance during this period and assess whether or not the consolidation phase is now complete. This volume will be of interest to researchers and academicians interested in the financial history of Indian Banking reforms.

Download or read book Banking Sector Reforms and Consolidation in Nigeria written by Aishatu Hassana Adigun and published by . This book was released on 2008 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book On Bank Consolidation in a Currency Union written by Fabio Di Vittorio and published by International Monetary Fund. This book was released on 2018-04-24 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper focuses on the impact of diversification on bank performance and how consolidation through mergers and acquisitions (M&A) affects the banking sector’s stability in the Eastern Caribbean Currency Union (ECCU). The paper finds that a lower level of loan portfolio diversification explains higher non-performing loans and earnings volatility of indigenous banks, as compared to foreign competitors in the ECCU. We then simulate bank mergers both within and across ECCU countries by combining individual banks’ balance sheets. The simulation shows that a typical indigenous bank could better diversify against its idiosyncratic risk by merging with other banks across the border. In addition, we point out that M&A, leading to a more asymmetric banking sector, may increase systemic risk.

Download or read book Banking Reforms and Globalisation written by Mohan Prasad Shrivastava and published by APH Publishing. This book was released on 2007 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contributed articles with reference to India.

Download or read book Banking Reforms and Consolidation written by Wahab Babatunde Dabiri and published by . This book was released on 2007 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Power of One Man written by Ray Echebiri and published by Safari Books Limited. This book was released on 2024-07-25 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Power of One Man is a lucid account of the Professor Chukwuma Soludo-engineered banking consolidation - its launch and implementation, and how it transformed the Nigerian banking industry. The take-off point of the narrative is a vivid account of the liberalisation of the national economy, the consequent deregulation of the banking industry, and the resultant proliferation of banks. The deregulation of the banking industry resulted in the mushrooming of banks all over the place; at some point, well over 100 banks dotted the Nigerian banking space. By 2004, however, the number of banks in the country had shrunk to 89, following the collapse of some of the banks. The crash of some of the banks in quick succession almost completely eroded public confidence in the country's banking system. Allowing this to continue was going to spell doom for the national economy. To arrest the situation and also transform the nation's banking industry, Soludo who was barely a month in office as Governor of the Central Bank of Nigeria (CBN) embarked on banking reforms that had all the trappings of a revolution. The prompting for the reforms was his discontent with the fragility and meagre capital base of most of the 89 banks that littered the Nigerian banking space, and their inability to drive the growth and development of the national economy at a rapid pace. The major objective of the reforms, therefore, was to transform the country's banking system to one that exudes stability, and populated by well-capitalised, strong banks that can champion the country's economic renaissance. Expectedly, the implementation of the consolidation agenda was not a walk in the park. The journey was tough and rough. But with Soludo's unflinching and total commitment to the programme, and the backing of his boss, President Olusegun Obasanjo, its success was as sure as night follows day. At the end of the 18-month timeframe set for the exercise, 25 banks emerged, all of them capitalised to the required N25 billion; some even went way above the N25 billion base capital. Thus, a new Nigeria banking industry was born. Since then, the industry has been growing by leaps and bounds. One significant objective of the banking consolidation was to see Nigerian banks fly Nigeria's flag in different countries of Africa and around the world. That has come to pass. Nigerian banks, especially First Bank, United Bank for Africa, Guaranty Trust Bank, Access Bank and Zenith Bank are everywhere dense in Africa. These banks are also bestriding the global financial markets like a colossus - their subsidiaries are competing favourably and operating profitably in different countries of the world. Certainly, the Nigerian banking industry envisioned in the 2004/2005 banking consolidation agenda is here.

Download or read book A Century of Banking Consolidation in Europe written by Manfred Pohl and published by Routledge. This book was released on 2017-03-02 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt: From the late nineteenth century to the late twentieth century the European banking sector experienced countless mergers and acquisitions. The outcome of this century of consolidation is strikingly similar across the continent, with the banking sector of each country now dominated by a handful of giant banking corporations. Consolidation and concentration trends in banking was the theme of the Academic Archive Colloquium of the European Association for Banking History held in Madrid in June 1997. This volume is comprised of the 18 papers and responses presented at the Colloquium by a truly international group of delegates. Some of the themes explored in the book include: the significance of mergers for bank archives; the regulation of mergers and their impact on banking legislation; reactions to consolidation from within and without the banking industry; case studies of particular mergers and their impact on the wider banking community. Youssef Cassis's introductory chapter provides a general survey of trends in the consolidation process and suggests that the advent of the Euro may herald a new era in the history of European banking consolidation.

Download or read book Consolidation and Market Structure in Emerging Market Banking Systems written by Gaston Gelos and published by International Monetary Fund. This book was released on 2002-11 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the evolution of market structure in emerging market banking systems during the 1990s. While significant bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the Panzar-Rosse (1987) methodology suggest that, overall, markets have not become less competitive in a sample of eight European and Latin American countries. Lowering barriers to entry, by doing such things as allowing increased participation of foreign banks, appears to have prevented a decline in competitive pressures associated with consolidation.

Download or read book Profound Effects of Consolidation Mergers on Bank Recapitalization written by Newman Enyioko and published by . This book was released on 2015 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Nigerian banking sector was highly oligopolistic with remarkable features of market concentration and leadership. The CBN reforms to consolidate the banking sector through drastic increase to N25 billion as minimum capital base has led to a remarkable reduction in number of banks changed their mode of operation and their contribution to the economy. This study through review of literature and data analysis explores the profound effects of consolidation/mergers on bank recapitalization: issues and challenges in the Nigeria banking industry and found that, the CBN decision has changed the market structure of the banking sector, increased the efficiency and reliability of the banks, created opportunities for financial institutions and market participants, and raised their intermediation potentials. It also became evident that for such strategy to be effective, Central Bank of Nigeria needs to make banks recapitalization a continuous exercise at interval of 5-10 years to catch up with inflation and happenings in other parts of the world. It is equally important to establishing branches by mega banks in the rural areas of the country so as to ensure adequate access to credit facilities and other services.

Download or read book Bank Mergers written by Jayshree Bose and published by . This book was released on 2007 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to liberalization, financial reforms in India have taken giant strides, particularly in banking. However, the area of strategic banking consolidation still needs attention. Consequently, Indian banks have remained mute spectators to two global mega me

Download or read book Post Consolidation Banking Crises written by Prof. Suleiman A. S. Aruwa and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Nigerian banking system is undergoing a sector wide reform that will enable it to be part of the global trend in consolidation with opportunities of becoming strong, competitive and reliable. Evolving such a banking system in Nigeria requires a reform, of which recapitalization through mergers and acquisition forms a readily effective option. This paper has examined the post consolidation banking crises areas in the balance sheet components. The data used and the analysis are basically secondary and descriptive using cross-country empirical evidence and experiences available in documentations. The banking reform engenders opportunities and challenges for the banks and the regulators. Both the opportunities and the challenges have to be managed effectively to enable the banks and the Nigerian economy benefit from the full impacts of the consolidation exercise. The most outstanding challenge is that a post consolidation banking failure will be a disastrous consequence for the Nigerian economic system depending on policy options adopted in managing the balance sheet components and the regulatory role. The regulatory authorities need to re-engineer their regulatory and infrastructural bases in order to enable the banks perform to their optimum levels.

Download or read book The Impact of Regulatory induced Consolidation on Banks Performance written by Ngozi Ihuoma Ibeji and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Post Consolidation Era of the Nigerian Banking Industry written by Obinna Izuchukwu Okafor and published by . This book was released on 2017-06-03 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Banking Sector Restructuring Debt Consolidation and Small and Medium Sized Enterprises in Transitional Economies written by Andy W. Mullineux and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper draws lessons for economies at an early stage in transition from the experiences of other formerly centrally planned economies now at a later stage in their transition in the areas of (a) financial sector reform; (b) stabilisation, debt consolidation and bank restructuring; and (c) small and medium-sized enterprise financing.