Will financial distress lead to banks Merger and Acquisition in Bangladesh?

Ullah, Nazim and Uddin, Akther (2018): Will financial distress lead to banks Merger and Acquisition in Bangladesh?

Abstract

The paper discusses banks merger and acquisitions (M&A), an important and latest issue for developing economies like Bangladesh. The study is theoretical and analytical in nature. The extensive review of existing literature shows that bank M&A has been growing rapidly on the backdrop of financial deregulation and market competition across the world. However, the positive results of M&A on banking performance are still not well documented. Against the backdrop of current macroeconomic condition and political instability, we tend to argue that increasing non-performing loans, higher interest rate spread, and poor corporate governance could lead to bank massive failures and ultimately increase M&A in banking industry of Bangladesh. A number of policy measures have been recommended.

• Item Type: MPRA Paper
• Language: English
• Keywords: bank merger and acquisitions, bank failure, non-performing loan, interest rate spread
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance

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