A low interest rate environment and government regulations has forced banks to look to other options for survival and growth. Mergers and acquisitions seems to be the most attractive one. 2016 is expected to be a record year for M&A in the banking industry. But, most such activity will be limited to small community banks, which are fighting for their survival in a low interest rate environment.
This 2012 chart shows some of the mergers noted above. Solid arrows point from the acquiring bank to the acquired one. The lines are labeled with the year of the deal and color-coded from blue (older) to red (newer). Dotted arrows point to the final merged entity.
Investors will soon realize that, for the state-owned banks, mergers and consolidation will amount to little more than putting lipstick on a pig.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here . This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about. If references are entirely missing, you can add them using this form . If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form . If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation. Please note that corrections may take a couple of weeks to filter through the various RePEc services. More services MyIDEAS Follow series, journals, authors & more
Copyright © 2016 KeyCorp®. All Rights Reserved.