Banking Consolidation Process and Impact to Financial Stability
Abstract
Globalization promotes financial market participants to seek opportunities for efficient management of available resources and maximize benefits. In recent years, took place in the consolidation process is mainly due to both macroeconomic and microeconomic factors. Most often leads to consolidation processes in order to gain economies of scale, market power and X-efficiency. Market consolidation and financial sector stability studies have shown that concentrated financial intermediaries market have a negative impact on the region/country/sector financial stability. In the future countries and regions (EU) must find ways and means to smoothly manage the inevitable process of globalization under the supervision of future merger transactions in order to guarantee the efficiency and sustainability of the financial sector.
Article in Lithuanian
Keyword(s): bank consolidation; financial stability; mergers; acquisitions
DOI: 10.3846/mla.2010.036
Science – Future of Lithuania / Mokslas – Lietuvos Ateitis ISSN 2029-2341, eISSN 2029-2252
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