Financial and social barriers to bank merger and acquisition

This paper presents an empirical investigation of the various social and business barriers to bank merger and acquisition in Kuwait. The investigation contains an assessment of the emerging banking structure and questions the ultimate need to deregulate the banking sector. The study explores the var...

Full description

Saved in:
Bibliographic Details
Published in:Journal of derivatives & hedge funds 2008-11, Vol.14 (3-4), p.160-197
Main Authors: Alshamali, Mansour, Alfadly, Mansour, Abumustafa, Naser I
Format: Article
Language:English
Subjects:
Bank acquisitions & mergers
Banking industry
Competition
Deregulation
Disclosure
Economic conditions
Economic statistics
Economic theory
Emerging markets
Financial analysis
Financial institutions
Financial services
Fixed exchange rates
Foreign subsidiaries
Interest rates
Islamic financing
National banks
Regulation of financial institutions
Stockholders
Studies
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper presents an empirical investigation of the various social and business barriers to bank merger and acquisition in Kuwait. The investigation contains an assessment of the emerging banking structure and questions the ultimate need to deregulate the banking sector. The study explores the various reasons for the lack of interest in merger and acquisition in Kuwait, contradicting the general trend in the banking industry worldwide. We analyse the performance of major banks and investigate the CEO's perception of banking consolidation and deregulation of this sector. We find that inappropriate market regulations against foreign direct investments, poor internal decision making and governance, high concentration in equity ownership, and inexperienced management dominance are major characteristics of this sector that act against any possible merger attempt, in addition to some other factors. Further, short-term benefits seem to act as secondary barriers to strategic consolidation. [PUBLICATION ABSTRACT]
ISSN:1753-9641
1753-965X
DOI:10.1057/jdhf.2008.19