An Analysis of Merger and Acquisition Models of China's Commercial Banks

Abstract

Growing merger and acquisition (M&A) business is an important way for commercial banks to achieve their own high-quality development. In the increasingly fiercely competitive market, commercial banks are confronted with some problems such as decreasing comparative advantages of traditional financing channels, and poorly standardized and market-based bond financing markets. As the government deregulates commercial banking and M&A financing needs are rapidly growing, domestic commercial banks should vigorously develop investment banking and focus on emerging industries, and thus work to build a large service platform of M&A by expanding the product chain, innovating financing instruments, such as M&A loans, bonds and funds, and pursuing product diversification. This article studies the development strategy of M&A business in China's commercial banks, and by considering the current development situation of this business and analyzing relevant data, provides some suggestions for the country's commercial banks to effectively develop M&A financing services.