Bank Mergers: Lessons for the Future by Steven I. Davis (auth.)

By Steven I. Davis (auth.)

Show description

Read or Download Bank Mergers: Lessons for the Future PDF

Best banks & banking books

Reforming the World Bank: Twenty Years of Trial - and Error

Within the many reviews of the realm financial institution a serious factor has been overlooked. whereas writers have checked out the Bank's political economic system, lending, stipulations, suggestion, possession and accounting for matters resembling the surroundings, this examine seems to be on the financial institution as a firm - if it is arrange to do the activity it's imagined to do and, if no longer, what may be performed approximately it.

The Art of Better Retail Banking: Supportable Predictions on the Future of Retail Banking

"This new ebook on retail banking is either readable and leading edge. Its research is surprisingly obtainable in its type, and the book's conclusions and predictions could be rightly inspiration frightening. the buyer is gaining actual strength and this new book's insights at the significance of management, the necessity to unharness creativity and to make a bank's IT and other people source interact extra successfully for consumer delight are vital tips to the form of destiny aggressive differentiation.

Financial Crisis and Bank Management in Japan (1997 to 2016): Building a Stable Banking System

This publication explores the demanding situations confronted by way of the japanese economic climate and the japanese banking following the monetary quandary that emerged round the flip of the final millennium. the writer explores how the japanese monetary problem of the overdue Nineteen Nineties engendered large restructuring efforts within the banking undefined, which finally resulted in much more sweeping adjustments of the industrial method and long term deflation within the 2000s.

Extra info for Bank Mergers: Lessons for the Future

Sample text

Customers won't allow current high product prices with lower cost alternatives available. We've got to cut costs. We're going to continue to live in this tough competitive environment. Our merger model therefore is to convert to our platform, cut out duplicated overhead, and knock out excess management layers. With hundreds of bank mergers taking place each year, the US has understandably developed the most refined merger cost model. 1 Likely source of merger cost savings Typical savings on smaller company cost base Years of Range of cost saves capture Executive and general 80 100 1 adminstration % Marketing 60 Legal 50 HR Audit and accounting Facilities IT 100 90 Treasury 90 70 60 40 50 30 1 1 1 1 2 20 30 2-3 20 30 2 Credit/mortgage operations 30 Payments operations 25 40 30 2 2 Deposits operations 10 20 2 Others operations 10 20 2 Branch network 20 Source: McKinsey & Company.

Thus for banks like Fleet, BSCH, Chase, Erste, First Union, UBS, and Deutsche Bank, the challenge is to move as quickly as possible to make these key decisions and join the banks at the operational level. At Planning the Merger 41 Deutsche Bank, Scott Moeller, who co-ordinates the integration teams in London for the key Global Corporates and Institutions Division in its acquisition of Bankers Trust, recalls the lessons from Deutsche Bank's earlier efforts at acquiring an investment banking entity: Deutsche's management drew a lot of lessons from the Morgan Grenfell acquisition in 1989.

Thus a wide range of senior bankers at Chase, ABN Amro, Bank One, ING, Lloyds TSB, Credit Agricole, Merita Nordbanken and Wells Fargo emphasised that they would only contemplate such transactions where management presumably welcomes the merger. Thus both Walter Shipley of Chase and John McCoy of Bank One point to their ability to attract merger partners who might not otherwise be interested in a deal ± as well as the obviously better internal climate for executing it. By the same token, Tom Grondahl of Den norske Bank, which acquired the Vital insurance company by successfully bidding against a foreign partner welcomed by Vital management, acknowledges that: We were a `black knight' [as opposed to a white one] for Vital, and there was resistance in the beginning to the merger.

Download PDF sample

Rated 4.18 of 5 – based on 37 votes