Bank management in bank decline: Bank mergers as a recovery recipe?

Anders Kjellman (), Risto Tainio and Taisto Kangas
Additional contact information
Anders Kjellman: Novia University of Applied Science, Vaasa, Finland
Risto Tainio: Aalto University, Helsinki, Finland.
Taisto Kangas: Aalto University, Helsinki, Finland.

Journal of Economic and Financial Studies (JEFS), 2014, vol. 2, issue 6, 26-36

Abstract: The aim of this article is to present a model concerning bank management during the period of decline. Our focus is on bank mergers as a way out in from a crises situation. Generally, the explicit factor behind bank decline usually relates an economic downturn. However, the implicit, triggering factor behind bank decline relates to bank management. The available options for crisis bank management beside mergers are to cut costs, to increase income, to get more own capital, to manipulate bookkeeping data, to sell the bank, to buy banks or to declare failure. Based on 309 bank mergers during 1990 to 2013, we found that bank managers in many cases gradually lost their confidence concerning their capability of successfully running their banks, therefore choosing to merge.

Keywords: Banking crisis; Bank management; Decline model; Merger. (search for similar items in EconPapers)
JEL-codes: G01 G02 G34 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://journalofeconomics.org/index.php/site/article/view/149/174 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lrc:lareco:v:2:y:2014:i:6:p:26-36

Access Statistics for this article

More articles in Journal of Economic and Financial Studies (JEFS) from LAR Center Press
Bibliographic data for series maintained by S Marjan ( this e-mail address is bad, please contact ).