Bank Mergers’ Risks : the Macro and Micro Prudential approaches and their determinants. / Hassan, M; Giouvris, Evangelos.

The 12th International Risk Management Conference. ed. / Edward Altman; Menachem Brenner; Maurizio Dalocchio; Giampaolo Gabbi. Italy : The Risk, Banking and Finace Society, 2019.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Published

Standard

Bank Mergers’ Risks : the Macro and Micro Prudential approaches and their determinants. / Hassan, M; Giouvris, Evangelos.

The 12th International Risk Management Conference. ed. / Edward Altman; Menachem Brenner; Maurizio Dalocchio; Giampaolo Gabbi. Italy : The Risk, Banking and Finace Society, 2019.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Harvard

Hassan, M & Giouvris, E 2019, Bank Mergers’ Risks: the Macro and Micro Prudential approaches and their determinants. in E Altman, M Brenner, M Dalocchio & G Gabbi (eds), The 12th International Risk Management Conference. The Risk, Banking and Finace Society, Italy.

APA

Hassan, M., & Giouvris, E. (2019). Bank Mergers’ Risks: the Macro and Micro Prudential approaches and their determinants. In E. Altman, M. Brenner, M. Dalocchio, & G. Gabbi (Eds.), The 12th International Risk Management Conference Italy: The Risk, Banking and Finace Society.

Vancouver

Hassan M, Giouvris E. Bank Mergers’ Risks: the Macro and Micro Prudential approaches and their determinants. In Altman E, Brenner M, Dalocchio M, Gabbi G, editors, The 12th International Risk Management Conference. Italy: The Risk, Banking and Finace Society. 2019

Author

Hassan, M ; Giouvris, Evangelos. / Bank Mergers’ Risks : the Macro and Micro Prudential approaches and their determinants. The 12th International Risk Management Conference. editor / Edward Altman ; Menachem Brenner ; Maurizio Dalocchio ; Giampaolo Gabbi. Italy : The Risk, Banking and Finace Society, 2019.

BibTeX

@inproceedings{a68e524de9644d2e83aa1b29a95d7f43,
title = "Bank Mergers’ Risks: the Macro and Micro Prudential approaches and their determinants",
abstract = "This paper examines the effects of bank mergers on systemic and systematic risks, along with other determinants of M&A deals criteria, product and market diversification orientation, crisis threshold and other regulatory and market factors. Results indicate that bank mergers accord with systemic risk. Improvements in operating profit and well-controlled cost of capital can certainly contribute to decreasing systematic risks and capital shortfalls, and consecutively systemic risk contribution. Crossborder deals tend to be sensitive to payment type and prefers cash transactions. Larger acquiring banks decrease systemic risk contribution in crossborder M&As with non-bank financial institutions, and witness profitability (ROA) gain, supporting geographic diversification stability. Capital requirements, activity restrictions, bank concentration and large acquiring banks increase systemic risk contribution of national mergers. Bank mergers with Diversified and Investment FIs targets enhance Productivity (TFP) and overall efficiency but not technical efficiency, contrary to bank-real estate deals where technical efficiency change accompanied lower systemic risk contribution. Unlike ROA, leverage and net operating profit, Sustainability growth rate and ROE significantly improve in all diversifying deals and decreases systemic risk contribution.",
keywords = "Bank Mergers, Systemic Risk, Systematic Risk, Consolidation Strategic Choices, Financial crisis, Capital Shortfalls",
author = "M Hassan and Evangelos Giouvris",
note = "Highlights • Results indicate that bank mergers are associated with systemic risk. • Improvements in operating profit and a controlled cost of capital decrease systematic risks. • Cross border deals are sensitive to payment type and prefers cash transactions. • Large acquiring banks decrease systemic risk in cross-border M&As with non-bank FIs. • Large banks non-bank FIs cross-border M&As witness profitability (ROA) gains. • Capital requirements and activity restrictions increase systemic risk in national mergers. • Bank mergers with Diversified and Investment FIs targets enhance Productivity (TFP). • Bank-real estate mergers improve technical efficiency and lower systemic risk.",
year = "2019",
month = "6",
day = "18",
language = "English",
editor = "Edward Altman and Menachem Brenner and Maurizio Dalocchio and Gabbi, {Giampaolo }",
booktitle = "The 12th International Risk Management Conference",
publisher = "The Risk, Banking and Finace Society",

}

RIS

TY - GEN

T1 - Bank Mergers’ Risks

T2 - the Macro and Micro Prudential approaches and their determinants

AU - Hassan, M

AU - Giouvris, Evangelos

N1 - Highlights • Results indicate that bank mergers are associated with systemic risk. • Improvements in operating profit and a controlled cost of capital decrease systematic risks. • Cross border deals are sensitive to payment type and prefers cash transactions. • Large acquiring banks decrease systemic risk in cross-border M&As with non-bank FIs. • Large banks non-bank FIs cross-border M&As witness profitability (ROA) gains. • Capital requirements and activity restrictions increase systemic risk in national mergers. • Bank mergers with Diversified and Investment FIs targets enhance Productivity (TFP). • Bank-real estate mergers improve technical efficiency and lower systemic risk.

PY - 2019/6/18

Y1 - 2019/6/18

N2 - This paper examines the effects of bank mergers on systemic and systematic risks, along with other determinants of M&A deals criteria, product and market diversification orientation, crisis threshold and other regulatory and market factors. Results indicate that bank mergers accord with systemic risk. Improvements in operating profit and well-controlled cost of capital can certainly contribute to decreasing systematic risks and capital shortfalls, and consecutively systemic risk contribution. Crossborder deals tend to be sensitive to payment type and prefers cash transactions. Larger acquiring banks decrease systemic risk contribution in crossborder M&As with non-bank financial institutions, and witness profitability (ROA) gain, supporting geographic diversification stability. Capital requirements, activity restrictions, bank concentration and large acquiring banks increase systemic risk contribution of national mergers. Bank mergers with Diversified and Investment FIs targets enhance Productivity (TFP) and overall efficiency but not technical efficiency, contrary to bank-real estate deals where technical efficiency change accompanied lower systemic risk contribution. Unlike ROA, leverage and net operating profit, Sustainability growth rate and ROE significantly improve in all diversifying deals and decreases systemic risk contribution.

AB - This paper examines the effects of bank mergers on systemic and systematic risks, along with other determinants of M&A deals criteria, product and market diversification orientation, crisis threshold and other regulatory and market factors. Results indicate that bank mergers accord with systemic risk. Improvements in operating profit and well-controlled cost of capital can certainly contribute to decreasing systematic risks and capital shortfalls, and consecutively systemic risk contribution. Crossborder deals tend to be sensitive to payment type and prefers cash transactions. Larger acquiring banks decrease systemic risk contribution in crossborder M&As with non-bank financial institutions, and witness profitability (ROA) gain, supporting geographic diversification stability. Capital requirements, activity restrictions, bank concentration and large acquiring banks increase systemic risk contribution of national mergers. Bank mergers with Diversified and Investment FIs targets enhance Productivity (TFP) and overall efficiency but not technical efficiency, contrary to bank-real estate deals where technical efficiency change accompanied lower systemic risk contribution. Unlike ROA, leverage and net operating profit, Sustainability growth rate and ROE significantly improve in all diversifying deals and decreases systemic risk contribution.

KW - Bank Mergers

KW - Systemic Risk

KW - Systematic Risk

KW - Consolidation Strategic Choices

KW - Financial crisis

KW - Capital Shortfalls

UR - https://www.therisksociety.com/paper-download-area-irmc2019/

M3 - Conference contribution

BT - The 12th International Risk Management Conference

A2 - Altman, Edward

A2 - Brenner, Menachem

A2 - Dalocchio, Maurizio

A2 - Gabbi, Giampaolo

PB - The Risk, Banking and Finace Society

CY - Italy

ER -