Synergy effects of bank mergers: A comparative case study on the mergers and acquisitions after the Asian financial crisis of the current top three banking institutions

• Main Authors: Chua, Chris Jane S., Reyes, Edwin T., Uy, Marie Arrianne Gold L., Yu, Katherine U.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Bank mergers > Philippines; Financial institutions > Merger > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14195
• Institution: De La Salle University

Mergers and Acquisitions (M&As) became widespread in the Philippines only after the Asian Financial Crisis in 1997. (Ang Baya, 2000) With today's increasing competition in the banking industry, the game is not only survival of the fittest but whether the synergies expected also fit the banks involved. The approach used by the proponents of this study was to examine and analyze the motives and synergies realized by three (3) acquirer banks namely Metropolitan Bank and Trust Company, Bank of the Philippine Islands, and Equitable PCI Bank based on a framework adopted from several studies involving M&As. The findings were then validated through interviews of key bank personnel. The analyses revealed that the motives of each bank differs based on their core values, vision-mission, and assessment of the top management what is best for the bank. Thus, the synergies gained were also different from one another. Overall, the findings of the study can be used by the people or institutions involved or interested in M&As.