The restructuring of the banking sector in the European Union through mergers and acquisitions

Abstract

In many countries of the European Union banking crises or bankruptcy of the largest systemically important financial institutions have become an additional stimulus for the process of restructuring and mergers and acquisitions of local and international banks in Europe. Despite the economic downturn, the agreement on mergers and acquisitions (M&A) are a powerful tool for the development of the European banking sector and changes in its structure. The situation after the global financial crisis forces banks to amalgamate capital for more efficient use and further development. One of the determining factors for further development of the EU banking sector at the moment is the state of the economies of Greece, Spain, Italy, Portugal and Cyprus. Quite an active part in the agreements on mergers and acquisitions in the financial sector is the State, which has traditionally been a lender of "last hope", buying or sanitizing troubled banks. The government actively supports the large banks, which for some reason were on the verge of bankruptcy.