Lookup NU author(s): Dr Rekha Nicholson
The global banking industry has seen dramatic changes in the past 40 years. Most recently, the financial liberalization of emerging markets and the global financial crisis have significantly impacted the market share of banks worldwide. This article investigates the impact of the 2007–2008 financial crisis on cross-border mergers and acquisitions (M&As) in the banking sector and emphasizes the role of emerging-market banks in the postcrisis consolidation trend. Using M&A data and concentration data over the period 2000–2013, our analysis indicates that the financial crisis had a significant impact on worldwide M&As, especially on the direction of the transactions. Emerging-market banks appear to be major acquirers in the postcrisis period, targeting both neighboring countries and developed economies in Europe. We also observe an increase in bank concentration in developed markets most hit by the financial crisis, especially in the United States and the United Kingdom, whereas bank concentration decreased in emerging markets.
Author(s): Rao-Nicholson R, Salaber J
Publication type: Article
Publication status: Published
Journal: Thunderbird International Business Review
Print publication date: 01/03/2016
Online publication date: 21/06/2015
Acceptance date: 21/06/2015
ISSN (print): 1096-4762
ISSN (electronic): 1520-6874
Publisher: John Wiley & Sons, Inc.
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