THE MERGER OF THE BANKS FOR PROFIT

The relevance of this work is stipulated by the fact that in the current economic situation, credit institutions face a huge problem of overcoming specific adverse conditions through the use of effective measures. There is a need to master the methods of re-organization of activities. In this light, the mergers and acquisitions activities undertaken are one of the main elements of change, with the aim of modifying the ownership structure, therefore they deserve special consideration. The banking sector has undergone significant changes in recent years. The nature of which can be noted in the globalization of financial markets, strengthening of financial sector, etc. All these result in: reduction of the number of banking institutions, expansion of banking business expressed in the expansion to the international scale of business and the emergence of a new product line, including the extension of the banks’ proposal of the non-bank products and services. The change of the banking system having its final goal on increase of the efficiency of the banking sector is directly related to the processes of transformation of its structure based on the methods of mergers and acquisitions of banks. Consolidation of the bank capital through mergers and acquisitions, as well as their connection with other financial institutions in the form of various associations, confederations, etc., are characteristic of the development of the banking sector in all market countries. Regularly multiplying their forces, these processes strengthen competitive positions of banks and help them winning back the new areas of influence, both on the national and international financial market. Making profit is an important result of the bank mergers. This is one of the most effective ways to increase equity.

banking sector, bank, takeover, merger, association, assets, integration of banks, banking organization, efficiency improvement, efficiency assessment.

Kuvshinova T. O. The merger of the banks for profit. Business. Education. Law, 2020, no. 1, pp. 174–178. DOI: 10.25683/VOLBI.2020.50.122.