Determinants of mergers and acquisitions among Finnish cooperative and savings banks

Matias Huhtilainen (), Jani Saastamoinen () and Niko Suhonen ()
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Matias Huhtilainen: University of Eastern Finland
Jani Saastamoinen: University of Eastern Finland
Niko Suhonen: University of Eastern Finland

Journal of Banking Regulation, 2022, vol. 23, issue 3, No 7, 339-349

Abstract: Abstract This study is the first to examine mergers and acquisitions among small, regional stakeholder banks that belong to the same group. Using data on Finnish unlisted cooperative and savings banks, we investigate the relationship between bank-specific factors and the likelihood of a bank being an acquirer or an acquisition target. We find that large banks tend to acquire small and inefficient banks. Additionally, we examine the loan growth and find a negative (positive), statistically significant association with the likelihood of a bank being an acquisition target (acquirer). Finally, we document an increase in the likelihood of a bank being an acquisition target subsequent to an increase in the share of net fees and commission income against total assets.

Keywords: Mergers and acquisitions; Stakeholder banks; Banking sector consolidation (search for similar items in EconPapers)
JEL-codes: C35 G21 G34 L22 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41261-021-00170-4

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