Analysis Of Russian Practice Of Bank Mergers And Takeovers

Abstract :

The topic of bank mergers and acquisitions is given great attention both in the Russian Federation and abroad. The mergers and acquisitions market is cyclical, unstable, however, it does not lose its relevance. Many large modern banks are the result of completed merger or acquisition transactions.?Currently, in the Russian Federation the topic of bank mergers and acquisitions is very relevant, since in the period of economic instability bank mergers and acquisitions are a survival tool for small and medium-sized banks. The changes that are currently taking place in Russian banking sector create all conditions for bank mergers and acquisitions. The number of credit organizations is decreasing, the number of mergers and acquisitions, which is caused by the need of banks to comply with regulatory requirements, is increasing. One of the most effective ways to increase a bank’s capital is through mergers and acquisitions. For small players a merger and acquisition deal can be a lifeline. For large players new opportunities appear for rehabilitating problem banks and acquiring competitors at the lowest possible prices.