Will financial distress lead to banks Merger and Acquisition in Bangladesh?

Nazim Ullah and Akther Uddin

MPRA Paper from University Library of Munich, Germany

Abstract: The paper discusses banks merger and acquisitions (M&A), an important and latest issue for developing economies like Bangladesh. The study is theoretical and analytical in nature. The extensive review of existing literature shows that bank M&A has been growing rapidly on the backdrop of financial deregulation and market competition across the world. However, the positive results of M&A on banking performance are still not well documented. Against the backdrop of current macroeconomic condition and political instability, we tend to argue that increasing non-performing loans, higher interest rate spread, and poor corporate governance could lead to bank massive failures and ultimately increase M&A in banking industry of Bangladesh. A number of policy measures have been recommended.

Keywords: bank merger and acquisitions; bank failure; non-performing loan; interest rate spread (search for similar items in EconPapers)
JEL-codes: G34 (search for similar items in EconPapers)
Date: 2018-01-01, Revised 2018-01-01
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:108576

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