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Will financial distress lead to banks Merger and Acquisition in Bangladesh?

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  • Ullah, Nazim
  • Uddin, Akther

Abstract

The paper discusses banks merger and acquisitions (M&A), an important and latest issue for developing economies like Bangladesh. The study is theoretical and analytical in nature. The extensive review of existing literature shows that bank M&A has been growing rapidly on the backdrop of financial deregulation and market competition across the world. However, the positive results of M&A on banking performance are still not well documented. Against the backdrop of current macroeconomic condition and political instability, we tend to argue that increasing non-performing loans, higher interest rate spread, and poor corporate governance could lead to bank massive failures and ultimately increase M&A in banking industry of Bangladesh. A number of policy measures have been recommended.

Suggested Citation

  • Ullah, Nazim & Uddin, Akther, 2018. "Will financial distress lead to banks Merger and Acquisition in Bangladesh?," MPRA Paper 108576, University Library of Munich, Germany, revised 01 Jan 2018.
  • Handle: RePEc:pra:mprapa:108576
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    References listed on IDEAS

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    More about this item

    Keywords

    bank merger and acquisitions; bank failure; non-performing loan; interest rate spread;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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