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Mergers And Acquisitions That Strengthen The Banking Systems During The Crisis

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  • RADULESCU MAGDALENA

    (UNIVERSITY OF PITESTI)

Abstract

A number of reasons have been advanced in order to explain why banks began to expand worldwide. There were several aspects that were aimed such as the client-bank relationship, the need for people to cooperate with these institutions and financial intermediaries in the host country. Mergers seek to improve the revenue derived from services performed later, but the increase is offset by personnel costs increase, while acquisitions are observed in order to restructure the acquired bank's loan portfolio and on the application of the improved lending policies that lead to higher profits. These things were best observed during the current crisis period. Regardless of the negative effects of the crisis, there were some banks which were not impacted. The large banking groups merged and by this means they managed to gain the power to dominate and control the entire activity of the field.

Suggested Citation

  • Radulescu Magdalena, 2014. "Mergers And Acquisitions That Strengthen The Banking Systems During The Crisis," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 67-72, August.
    • Handle: RePEc:cbu:jrnlec:y:2014:v:4:p:67-72
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    File URL: http://www.utgjiu.ro/revista/ec/pdf/2014-04/10_Radulescu.pdf
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    References listed on IDEAS

    as
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