Mergers and acquisitions in the Nigerian banking sector reform strategies have been recently approved, to reposition the bank sector. They were to achieve greater financial efficiency, avoid problems and bottlenecks of the expansion. In this context, is that this book is a comparative analysis of the profitability of the banks in the merger period pre and post office and acquisitions in Nigeria. This paper was gross income, result uses the indices of mergers and acquisitions in the period after the election to determine the financial effectiveness of the Bank tax and equity by comparing indices for this article, in Nigeria with methods and selection of the set shows three banks have been selected. Annual reports published in the name of the selected banks and through the application of the test statistic t by statistics for Social Sciences software analyzes data collected. Found that the period of Post Mergers & acquisitions was economically more efficient, the study recommends that banks should benefit more aggressive in their efforts to improve the financial situation of the advantages of mergers and acquisitions. Generated given the variety of forecasts by Differentcases, Hannan and Rhoades finally offered a so-called best projection for 2010 and 5500 commercial banks organizations. Ofmethodology what it takes, however, recommend all extrapolations, even with the decline, long-term bank balance sheet certainly would be a very large number of Bankingorganizations.Nolle S/1995 has tried us to simulate the impact of liberalisation of Thepossible structure of the Bank of Interstatebranching. based on the model of the State mergers, bankruptcies and the voices in the space of seven years 1987-1993, nolle Mechanicallyprojected the number of commercial banks (individually approved devices) to the end of the year 2000. Examines two scenarios: the latest trends on extrapolation under the assumption that the Allowingnationwide not be adopted the interstate branching laws, and a Judgmentaladjustment for the first scenario, it was assumed that Legislationwould approved the interstate branching in 1994 and mid-1997 (this last historically accurate Scenarioproved) fully approved. Measure of the concentration include TheHerfindahl-Hirschmann index (HHI is defined as the sum of the squares of the market shares of all banks on the market) and the report of the three Firmconcentration (CR3, d. (h.-the share of deposits Porel represent three major banks on the market). It was surprising, especially since many mergers cause most vulnerable were larger Inconcentration. Thus, Measuresgenerally appears despite the increasing activities of the merging banks in two decades 1984-2003 from the remains of the current concentration below the level where the monopolistic behavior of Manifestitself could. Part of the reason may be deregulation efforts down to facilitated progress in the technology of Haveresulted in a geographical area of the competitors to expand Entrybarriers and the powers of the Bank. Join the Fromnonbank of competition on the financial markets also makes important Onmarket control. But Rhoades (2000) warns, MSA (metropolitan area) Although market concentration remained relatively low Onaverage that sells a growing number of OfMSA, but since 1984 has risen significantly and is hungry, it suggest that more likely, where the bank merger proposals significant Competitiveissues increase.ConsolidationNaturally FundamentalCauses, are the lawmakers, academics and others know why and consolidation. Why, after decades of apparent shift began as a small industry, consolidation and restructuring of the Itselfso? There was no single reason for the trend of consolidation and Nosingle, the actual cause. on the contrary, the tendency could be seen as an achievement, a combination of macro - and micro-economic factors: Thatfundamentally forces and irrevocably changed to operate the environment in the banks and the banks strategic responses to these external environmental forces (apparently, value for the shareholders to maximize). Previous studies of the phenomenon of Theconsolidation were examined and discussed the length of the Atconsiderable several factors. Berger, Kashyap and Scalise (1995), Berger, but AndStrahan (1999) and Shull and Hanweck (2001), to provide in particular a Broadreviews of literature. Nolle (1995) reported that in 1984, which established mutual conditions most empowered the six new Englandstates, the Bank maintains its bank branches companies (usually through the acquisition) in another; in 1987 became the six States of these arrangements. Also in 1985, the most countries in the region in the southeast of the country accepts the conditions of reciprocity and 1988 the entire neurological. In general the majority was 2003 properly Unassistedmergers and acquisitions (see Figure 4, which dismantled the net change in the number of organizations from Bank in various components) the decline in the numbers of Oforganizations end of 1984 to the end of the year. For comparison, figure 12contrasts our projections linear to the number of companies of the Bankorganizations with the previous studies. Surprisingly, the best 20 years of Hannan guess (1992) AndRhoades projection, that the number of organisations at the masters 2010 not so different from our 5 500compared with our 5.847. projections of BKS (1995) and Robertson (2001), but considerably more than suggests, delaying a decline of commercial Bankorganizations by linear extrapolation of data from the past five years.In addition to ExtrapolationsAlthough linear linear extrapolation as Nosotorga offer a simple projection of the structure of the industry, AndHanweck, Shull (2001) have argued that simple Linearextrapolations on the basis of predictions of the trends are the past inadequate, because they give not process variable, generating structural changes. It tends to agree. Although we use for example the linear approach, we believe that this approach particularly naive Issomewhat, because he is able to integrate the information into the data, ignored the change of the character verantwortIich the decrease in the number of organisms. For reasons soon becomes clear, so should our linear projections as Thelower representative for our estimate of the future size of the banking sector. to improve the Presentedabove is simple linear extrapolation, what is needed, structure can capture a methodology for planning to speak, the series offers banking full-time. an econometric model of the Extremelygeneral, which promises to do in a simple and Expeditiousmanner is an integrated series of ARMA time series (ARIMA) moving average. The scope of the decadence and Increasingconcentration of the movement of goods between organizations of the country's largest bank produced a series of historical data, to clarify the test of adolescents and experiments as a reasonable approach to the description of the Underlyingprocesses that you probably are in fact as a whole, but is a Briefoverview serve powered by box and Jenkins (1976), this approach to the processes of the Modelingthe. Also represented by year end2003, banks with 3 683 each less than $100 million of Inassets as a group for only $192 billion in the activity of the industry (2percent, as shown above) and $160 billion (3%) of the national Präsentationen.Analyse of the concentration of the banking sector, AndSiems Moore (1998) and the Rhoades (2000) came to the conclusion, that despite increases in some of the most recent, measured concentration were national and local level, on average, relatively low. As mentioned above, a Significanteffect on the activity of the merger of Bank and consolidation in the industry had the banking sector reforms (such as the regional Interstatecompacts lifted restrictions on interstate branching). on the other hand, Lesdernieres has initiative legislation to modernize the financial Servicesindustry Gramm-Leach-Bliley (GLB) of 1999 no Similareffect. After Rhoades (2000), GLB cross Industrymergers offers between banks, brokers and insurance companies. These combinations are probably only the largest Bankingorganizations in consideration. Also by definition that includes the combination of a Bank, kind of financial service providers do not loss of Idrees letter Andanother. Therefore, it has no effect on the organisms by Ofbanking pay combination. Although we believe that our forecast is a model-based mobile media background Miglioramentorispetto estimated by simple linear extrapolation method, a different interpretation of the data suggests that the consolidation of the industry suggests most noticeable slowdown also our time Seriesforecast. In fact can according to an interpretation of the AndHanweck Shull (2001), the trend of consolidation in the banking sector the decades came to end in the not-too-distant future. FondamentalementShull and Hanweck coefficients, see in the banking sector as a dynamic and banks established steady-state in an exogenous shock (or shock), non-linear process to change already presented causing the population to a new equilibrium State equilibrium to move. Are marked according to this interpretation of less Ofbanking organizations as a situation where an Equilibriumbanking structure (described by the stability of the number of Bankingorganizations in the United States before 1980) due to rule changes, disrupted economic and technological. Atransitional reflects significant decrease in movement towards a new equilibrium. Figure 14 Shulland Hanweck continues to be a phase diagram. In the period 1984-2003 outlines the quarterly rate of development of the number of banks against the actual number of Organizationsfor. in the diagram, we see a Distincttransitional model (see the trend line) of something more than 15,000 companies Equilibriumstructure (if the exchange rate has been zero Lastnear) with the current structure of somewhat less 8,000 organizations (Cierre final in 2003).In fact, it is the temporary nature of the plot Quitedramatic. a special feature of the chart is that once numbers Ofbanking started organizations to fall, for the first time at an increasing pace, and then with a descending rate. the turning point about11, seems to have been 500 organisations. It's about the size of the industry in 1992. Interestingly, this year marks the end of the end of the recession National S Theunofficial & L and banking crisis. and if it is the shift of the phase diagram with a time schedule, it is easy to understand how the transition Hasprogressed since 1984. extension of the trendline to a point of intersection with the Wouldindicate of the change in the structure of the banking sector void reach structure in five years, organizations of 7,250 to equilibrium (assuming the development along unimpeded trend result). Diagram of the phase, the decrease in the number of Bankingorganizations significantly dropped and the industry structure, which it should stabilize in the next few years for approximately 7,250 Leastnumerically organizations, which generates the five-year forecast of our model, the Movingaverage from the Conclusionto extracted corresponds to. Use a series of impressive facts and figures, the book details the dramatic changes that have occurred in American commercial banking industry 15 years from 1979 to 1994. Thebanking industry has during this period according to the document (p. 127), transformed the huge reduction in the number of banks; Thesignificant increase in the number of bankruptcies. Inoff-sheet activities of the dramatic increase in the balance; the great expansion in the U.S.corporations loans from foreign banks; the widespread use of ATMs; ,. and Interstate banking markets opened. the document went to explain away, this CiŸ could be attributed to major changes in the banking sector two facts: (1) who very much important legal changes of the era, deregulation in 1980 with Fromdeposit loosening the Branchingrestrictions later in the Decade; (2) progress apacabar in France clearly identified finance and applied, including technologies Ofexport to enhance securitisation Informationprocessing and telecommunications of loans and the sale and development of markets. other research confirmed estimates of the paper Wouldlater and his explanation of the banking sector to current events in the period from 1994 Pourtant 1979, almost ten years after the publication of the Thatpaper, which show data, that the transformation of the banking sector Ongoingand, which gives the number of banks to lower Thoughrecently, it's evidence suggests further that the number of organizations began to stabilize it. In fact, if we look more closely at the data, we find that Slowingmarkedly seems to be that the decline in the number of banks therate. In fact, if newer data slightly in the direction of Aboutfuture, the decline is likely even slower in the next five years. on the other hand, is some evidence that this rate of decline could herald a return to a relatively stable population of banking organizations Slowdownin. The contrast of Toconventional would cause the wisdom, the continuous consolidation of the Bankingindustry in the United States foresees that this article part of a joint review in the United States. S banking industry past and the anticipation of the future, many aspects of the transformation of the industry is explained in documents of the company. The authors are linear trends study (subperiod1984) alignment with Eachregion through the calculation of an average annual exchange rate of Banco Mercantil of many organizations for the period 1989. Therefore, it is assumed that the number of commercial Bankingorganizations of the nation would change since 1989 at a rate that has been observed in both regions. This method provides the number of commercial banks in the United States in the area of 5 000 to 6000 in 2010 (depending on the region and time used). Forcomparative perspective of the authors also projections on trends in the station support extrapolations. This led to more than 5,000 places of the Commercialbanking with the addition of 2010 regional extrapolation of en and national trends, the authors have extrapolated from the structure of the Bank in California, where since1908 was titled by branch. the structure of the database in California, she founded Wouldrepresent of a case of due balance, which had developed the structure for a long period without any restrictions on the branches. in Thisextrapolation the authors accept that the Onbranching once all geographical restrictions were high, approaching the Bank to watch the report already in Californias report in Bankdeposits organisations at national level. Forecasts until 2010, on the basis of this approach varies depending on the time used to make the trend. According to the authors, the majority of Realisticprojection, showed that the banking sector of the United States eventually would reduce Amigopara 3,500 businesses of commercial banks. Extrapolation of in the period 1980-1989 light predicts rise of banks throughout the country not used. Our forecast of the total number of banks for the period 2004-2013, taking into account the Estimatedparameters of our time series model shows estimates of 3,500 organizations on trends from 1984 to 1989 figure 13. as you can see, we want to Bank of Theconsolidation trend and permanent during the next Voltadopo, industry, but at a pace slightly slower in the second five-year plan. Enel in the short term (next 5 years), according to our model, the industry Willdecline total 552 7.842 organisations at the end of the year 2003 up to 7, 290by at the end of 2008 (a decrease of 7%) in the year 2013, dropped our forecast shows Thebanking industry six further 866 424-administrative organizations (6percent below) for a reduction of a total of nearly 1,000 organizations (Orslightly more than 12 per cent) for a period of ten years. Despite several empirical studies of Ofconsolidation in the banking sector of the United States, much uncertainty the importance of various factors behind the effects of the merger but the consolidation trend Alsoabout to the shareholders of the Bank and those, the Usebanking does not follow services awareness. until we the Ofconsolidation reasons of all branch offices understand or, more work to do.StructureBecause banks Projectionsof banks play an important role in the U.S.financial system, changes are vulnerable to the effects of Havewidespread in the industry structure s. Therefore, Ifstructural is planning changes can be expected, until she comes.Revision of earlier projections are attached MethodologiesOf documented studies and the Thedecline discussed the number of banks, several including Hannan and Rhoades (1992), have developed nolle (1995), pastor, Kashyap and Scalise (1995) and Robertson (2001) Havealso in size and structure of the banking sector. most of these projections is based on linear extrapolation of the trends. Although all of these studies use slightly different approaches, Allpredicted a sharp decline in the number of commercial banks Organizationsthrough of the Decade of the 1990s and beyond. However, the community banking sector has even for94 percent the Bank houses (Figure 2).The decrease in the number of Bankingorganizations a wide variety seems geographically Ofregions and markets be across remarkably uniform. Critchfield et al. (2004), E.g. the Thedecline in community examines banks through four segments of the markets, markets, urban and suburban Smallmetropolitan of the great Metropolitanmarkets and found that the decreases in the four markets were Proportionallysimilar (Figure 3). the underlying dynamics of the decline however, Differeddepending on the market. rural areas, such as proportional seen and the Novo Fewermergers was very little when compared to smaller markets and large metro, where has been a greater number of offset partly by mergers by the optimal number of starts of the new Bank. Limitations of data analysis Restrictour application level banking organizations for years 1984-2003 and because we use the number of the individual commercial banks in 1984 14496 achieved, this year as the beginning of the Ourdiscussion the consolidation trend, although some Thetransformation aspects of the banking sector can be said that the United States began earlier. Given a time series is estimated in different types of selection of Modelswithin class of ARIMA models. as criteria can the best in terms of efficiency and precision to identify information Akaike (SBC), trying the best model (AIC) OrSchwarz Bayesian information criterion. We have decided to use the SBCbecause by its emphasis on the austerity measures. among the models tested daily Wesettled, a model where the fractional model of time series with the estimation of the maximum-likelihood (ARIMA [0, 2.1]) to adjust first order. Segundo-la differentiation was necessary to achieve stationarity Caux support the prediction model. to confirm your stationery, check the auto-correlation and partial correlation functions and evidence of unit roots Mantuvouna Dickey-fuller. see box Jenkins re Island (2000), and Judgeet (1988) for a more detailed explanation of setting Estimationand time series model. More info on the selection of models and analysis are the authors of this study available. As trends in mergers, acquisitions, Andfailures shows with one hand and start-ups, on the other hand, the pace of Thedecline in the number of banks is different.Shows in fact around the curve of changes in the price follow a very strong cyclical pattern, passing at a rate which, slowly started to Withdeclines (Figure 6) in the 1980s only in the1990s. Since 1992, the decrease in the number of the Institutionshas tendency constantly low. (this model affects projections firmer in the structure of the industry). Our aim is above all in the structure of the industry: how Alreadychanged was, and how it might develop in the future. Therefore, change us Anupdated review of structural in the industry for more than two decades of 1984-2003. This will give us a better understanding of the extent of the decline of that has taken place. Then, we analyze the causes for these Declineand of the literature on the impact of the drop in things to Assetconcentration, banking, competition, efficiency, profitability, shareholder value and availability and the price of banking services. After Thisanalysis of the past, we offer some predictions for future operations in the banking sector Industrystructure.Strukturwandel in the banking sector in 1984 in 2003Over of two decades1984 of 2003, has transformation anal most indeed the structure of the US banking sector marked by a sharp decline in the number of commercial banks and savings banks and subjected a Growingconcentration to unprecedented activity among a couple of dozen very large institutions. This is nothing new. As already mentioned, is the decrease in the number of banks has been for more than two decades and was well documented in the literature. According to Berger (1998) the effectiveness is improved by benefits from the merger because the company as a whole generally has a greater diversification of their Riskexposures through a better mix of geographical regions, sectors, types of loans, Andmaturity reached structures. At the same time can better diversification organization of central banks that carry out a change of Securityinvestments of credit portfolio for the consumer and the companies with the most activity of Expectedvalues. Therefore the effectiveness of the result would be stronger with the Becausecapital consolidation is better and why a geographically in order to reduce the risk of greater Diversificationtends. First scenario (in the case of the interstate branching) results a decrease of some under2 100 banks (798 8 schools) in the period 1994-2000 a Decreaseequal by about two-thirds the amount of consolidation in the period of 1993-the1987.The extrapolation of a second (in the case of interstate branching) suggests that the total additional consolidation of the Interstatebranching effect of a drop of 1,000 banks additional (i.e. total 7 787 Anindustry commercial banks would be in the year 2000). See Theseresults, nolle noted that the interstate branching not Fundamentallyalter the structure of national business banks industry; i.e., would even thousands of commercial banks have thousands of Bank Holdingcompanies between Millénaire. They come to a similar conclusion to AndHannan Rhoades (1992) and Christina (1995) was received by the Minister, Kashyap, and Scalise (BKS, 1995), but it uses a more complex method. Toquantify the possible impact of the abolition of the State and the Federalrestrictions in Interstate Bank, built econometric option BKS explain the distribution of the sizes of the Acrossorganization active national State-based commercial bank. in his model, Theproportion of the Bank was active in each size class, a number of independent Variablesque is developed a demographic variable status function, let, capture the differences in the existence and Liftingof State branch legal restrictions and interstate and have Onmultibank company acquisitions.Then with regressions, BKS Bank Interstate effects Ofnationwide simulated over 5 years, 10 years, 25 years, and in the long run, according to two scenarios: in the first place, assuming active zero growth large Domesticbanking; Secondly, assuming that the growth rate of the activities of the national trend over the period of sampling (1979-1994). for each scenario, the authors assumed Thatnationwide Bank immediately joined (1994); Therefore, all variation removed explanatory variables limitations on liberalisation, except for the effects of variables Ofgeographic Capturingtime-des liberalisation. This variable dose were the number of years that will be seen in the simulation. then, shares for the future value were changed in Thepredicted of the proportions for each size for each State in 1994 reality. The actions envisaged Jimmy Bank asset for each size class and they then between the 50states weighted average percentage of the assets in each class get ordered a size nationwide. BKS, finally, an estimate of the number of merchant banking in organizations of every size class by dividing the value in dollars of assets in each class size Projectedtotal for Oforganizations of medium size in this size class in 1994. Growth zero simulation results showed that geographic barriers for the National Bank has been to the most likely continuous significant consolidation in the area of Toresult on the other hand BancarioDde 1994 to 2003 only 66 does not appear institutions of greatly enhanced Thatreflects about the economic situation and the highest security and Soundnessregulation.Thedecline was caused by mergers, acquisitions and bankruptcy partially offset bythe 3,097 entry banks new organizations between late 1984 and end 2003. This number is particularly noteworthy, given the prevailing trend. during the period of the number of participants in the media by Novo deleted 163 per year, although the creation of new banks to the love and the banking crisis. the number of the implementation of the institutions reached its peak in 1984, then went every year until 1993; Then, when the improvement of the economic conditions and the capital became more accessible, Novo progressed hopes until the end of the century with the onset of the recession in March 2001 in the banking Resumedand, the number of new Charter Againbegan fall formations. To the best of our knowledge, all exclusion of Thriftorganizations previous studies and only numbers of commercial Bankingorganizations or institutions had advocated. The results so far show a small Greaterpayment system efficiency (see Hancock, Humphrey and Wilcox [1999] and Adams, farmer and sickles [2002]) and grown for the institutions, that the diversification of Theirgeographic, may have a lower risk of insolvency (Group of ten [2001] and Berger and DeYoung [2001]). Finally, avoid possible negative effects of the reduction in the number of banks: access to Bankingservices (including loans for small businesses) seems to have been Relativelyunaffected (example Voirpar, Avery et on the.) ) [1999], deYoung et al. [1998], AndJayaratne and clouds [1999]).On the other hand, the ceilings of the 1980s could most researchers, especially those and at the beginning of the 90s years were not in the position, these improvements in cost Efficiencythat expect to identify by size or superscope. Existingassets growth and wealth, but are not evenly distributed have been experienced, but on the other hand, were increasingly under s sing concentrated larger financial institutions. Figure 7 which compares the share of goods in time for each of the five groups of people like Ourperiod shows this trend. the joint were more assets by large companies with more than $10 billion dramatically, from 42 per cent in 1984 to73 percent when taking revenge, the percentage of assets industry unterbreitendie banks (companies with less than $1 trillion in assets) by 28% in 1984 to only 14 per cent in 2003; and the smaller banks with less than $100 million fortune, represented organizations as a group only 2 per cent of the activities of the industry in 2003 to 8% in 1984. In particular predicted in this scenario the model of nearly 4,000 in the year 1999 a total 7 926 4106 a pay decrease by nearly 50 percent in five years model commercial banks would fall. Surprisingly, some changes are expected after 1999. As national heritage the expected increase in the Inconsolidation entitled to the growth of the trend, the first five years after entry into force of the Interstate Branchingwas even more: the number of commercial banks is a3, 440. In contrast to the simulation of zero growth, which also predicts the Littleconsolidation after the first five years of the simulation of the projected increase in the number of organizations than it. in this scenario, the number of banks dropped a drop of 76 Percentfrom 1994 levels until 1939 in 25 years. Despite these cuts, simulations of Stillpredicted BKS s the database structure in the United States by thousands of companies from small banks would be seen. This Wasconsistent with the conclusion of the results of Hannan and Rhoades (1992) and Christina (1995).Robertson would eventually (2001), the number of banks are not used in any kind of dimension notifier gives you a transition matrix is calculated, which gives the probability of Idrees, in the same class size from one year to the next step, once the size of classes or leave the industry. After the confirmation of the Matrixstability then the transition estimates probability matrix 2000transition in 1994 at the end of the year 2000 on which he applied, to obtain future distribution gained size s. on the basis of this Methodologierobertson predicted that the number of commercial banks in 2000-4567 in 2007 by a Percentreduction 32 fall 6750 organizations Wouldcontinue. S. Robertson has the projections of previous studies indicated that the number of small banks continue to regularly fall organizations. Robertson of the simulation, that the number of Bankingorganizations with less than $100 million in real estate would be Bynearly was in fact predicted decline of 40 percent in the space of seven years, to expect.New linear extrapolation: a comparison with the Earlierstudies core library, so it seems that we can expect more push-ups in banking organizations, especially community banking (where the number of companies with less than $100 million of assets continue to fall is dramatic). However, some of the Aforementionedprojections are based on data that has more than a decade. WeShow previously, which, considerably reduced the reduction in the number of banks, Whileongoing in recent years. This slowdown would have significant impact on the future structure of Thebanking sector expectations. For this reason, we have formulated new forecasts for the Industrystructure about the latest trends.ASA have starting point, since organizations Ofbanking numbers project size based the linear approach each of the five categories to 2013혼다 Ourprojections on the quarterly net change average 2003 five - 1999 promotion. We wanted to believe we just on the last five years which focus Databecause, that the changes that occur during this period better mix the similarities of the forces, the impact on the banking sector between the Millenniumand, that as the number of trade Bankorganizations and the number of commercial banks and Organizationscombined of second hand therefore more relevant to the anticipation on the industry Futuredirection our projections comparable budget support of studies of PreviosHemos to projected this time. Table 1 contains our estimates of five to ten years. Can be wall appeared, the linear extrapolation suggests a continuous decrease (from 34organizations to fourth) the total number of banking services and Thriftorganizations of 7.?842 at the end of the year 2003-161 - 7, at the end of the year 2008 and to6480 at the end of 2013혼다 the predicted decrease in five years is 681organizations (8.7%) more than ten years, twice. Organizations only bank developed (Figure B) projections show similar trends. interesting is predicted for both groups, that of the autumn of Occurexclusively within the Group of smaller dimensions (companies with less than 100 million $) are. Extrapolation of the trends of the last five Yearsindicate, which everyone else in the Group of the size of small amounts increased. For the screenplay requires interstate branching, nolle, that Nostates, hatte-Out-banking or branches elected the opt regulations Interstate; Multi status, multiplexer, which every celebration (MSMBHCs) on the existence of the company in 1993 would be followed by Atmidyear are in existence by mid-1997 as Interstatebranching fully into force be had; and that, as a group, this branch of the MSMBHCswould up to 75 percent of its subsidiary banks from home State Byyear end of the year 2000. Finally, terrorist attacks 11.2001 and subsequent wars in Afghanistan and Iraq, economic damage and business Thebroader against the World Trade Center and the Pentagon Sept. But in Thebanking industry consolidation continues in the 21st century, albeit at a pace Muchslower. ConcentrationAt increased industry the same time, the number of Bankingorganizations, the assets of the industry is decreasing. in the year 2003 the1984 of active period in the banking system of $3.300000000009 trillion rose real values .1 trillion an increase of almost 70%. The asset classes have resized 2002 inflation with the deflator of GDP GDPprice as the base year. As a result, the number of 2003that had banks less than $100 million of assets between Banksin 1984 is similar, had less than $66 billion fortune. The extension of powers while we leave period, the small differences between commercial banks and savings banks (heraldry), Studyinghas Bank institutions unless otherwise specified, it brings our analysis combines both institutions. Furthermore, we focus on high level, rather than avoid the organizations institutions onindividual, has another letter from a single Corporation. County at the end of the year 1984 (15-084) includes all organizations, so the number 1 (which shows total 14, 884 organizations at the end of the year 1984) contains only organizations, the financial Presenteuna end 1984 report. Finally the conclusions Fromseveral researchers propose this consolidation and mantas of the emergence, complex banks probably increases the risk of system banking system and exacerbates the problem of too big to fail in the banking sector. Berger, s. (1998), a concept that the efficiency of the profit has not completed, the relative profitability of mergers and acquisitions, but also the Revenueeffects of the production changes that occur after a merger. FactorsAt macroeconomic environment, building a Beendriven by changes in the exogenous framework conditions of the banking industry, said that the changes often have worked together to promote the consolidation of peace. Among them was the globalization of the market, techno logical change, deregulation and macroeconomic events (such as the second crisis Andbanking 1980 and the early of 1990s and the economic market and photo of the boom in the late 1990s). Globalization and technological change have been permanent forces of change during the reference period and deregulation (init events) changed a power Aktion.Die other side, the power and influence of the extraordinary important macroeconomic events. for example the economic forces, the economy and the Bankingcrises, which primarily affected in the Middle at the end of the 1980s and 1990s drove years. Mid of 1990s there were more crises and failures of Bank and thrift were the consolidation of the industry. Also Largelyrestricted for a certain period of time was the influence of the economic growth and the stock market boom of the 1990s. Then, add a dimension of time by external influences in the consolidation represented do not help us to Onlyunderstand the current trend, but also the expectations for the future to formulate.Globalization and technology. Globalization has slowly begun in the aftermath of the second world war. After the war the major economies of the world increasingly is connected Andinterdependent, accelerated the trend toward globalization in 1970 and1980s together with the beginnings of the later a revolution in the technology of important information and communication technologies (ICT). In fact, at the end of the 20th century, technological change would have impact on almost all aspects of the banking business: the question of the banks, the character Disettore competition and the intensity and the structure of the industry services. In 2004, the FDIC has published the results of a project of the Comprehensiveresearch looking to the future of the Bank. Science as a Wholeprojects who probably expects trends in the structure and functioning of the banking sector topics are politics, business and the community, faced in the coming years. Copies of the research study can be obtained Makingup 1984, SizeAt at the end of the year, paper industry, banking and Thriftorganizations 15084 (defined as a commercial bank and savings portfolio, independent banks and independent company savings) had. The US economy in the project appeared one year later (in March 2001). at the same time these negative economic developments change the accounting in the way image fusion of concentrations Todiscourage were registered using transactions that financed by the Bank. In the first of these documents, Hannan and Rhoades has (1992) future United States trade Bankingstructure assuming the task of the projection, to follow on responses to the relaxing bank regulation between States at the regional level addressed that the national trend. Therefore we have examined 1980-1989 more closely the structural transition Tointerstate branch of the Southeast and New England d. In terms of deposits, the concentration of the industry a Beenequally drama: a quarter of the nation's national presentations are Nowcontrolled 3 organizations (see table a. 1) and in 1984, the same proportion had 42 companies. End of 2003, Bank AmericaCorporation, the owner of the largest deposits of the National Bank, had roughly held $512 billion in domestic deposits (9.8%) and assets of $ 870 billion (9.6%). Microeconomic factors in merger of DecisionsAs has only seen in the macro Levelconsolidation has been influenced by technology, deregulation, Macroeconomicevents, and other environmental factors, but it is the micro Factorsthat are generally by far the consolidation trend sensible. These factors are a strategy for the acquisition of Mergeror individual decisions of banks. from the perspective of micro decision by a bank to consolidate must be with the Charter to merge or acquire another company of Reflectmanagement be selected to maximize strategy or value given the competitive pressure from a market Orientedenvironment of the farm. For example, a merger can be based reduction benefits Orincreasing of geographical diversification and product to the value of Maximizingmotives as the realization of size and scope, or risk. In fact, the latest survey Directorate, INA were reasons for the value of the Oftencited as the main reason for a merger to pursue to maximize. And as above, noted evidence that administrators Bepursuing there are mergers and acquisitions for reasons apart to maximize the value of the farm: researchers who have studied the topic consistently have found support for the building of the Empire and one senior managers compensation idea is Oftenprimary reasons for bank mergers. Macroeconomic events. 1970 ITC was technologies belongs before the deregulation and effects full Therevolution, that a series of macro-economic Shockscombined with both globalization and technology for Dramaticallyalter the economic environment is forcing you, are active in the banks. In fact, the Decade of the response of floating exchange rates Increasedvolatility rate of stagflation, interest rates, oil and Unexpectedchanges in other variables very was economic and financial crisis. This State Economicconditions and the reactions to it, have started to focus on the environment in which banks and arsenal, had run successfully without modification for many decades.In the Decade of 1980, these restrictions Bydouble increase inflation numbers, and then by the anti-inflationary of monetary Policiesdesigned half fight of the Decade, swinging wild high combinedwith drops the price of oil and gas properties of value, interest rates have a series of rolling recessions regional, wreaking havoc on sweet S s n L precipitated & and increases the number of industries bank failures., Soonreaching (and surpassed) levels been the invisible by GreatDepression, but when Mergersand took over rose to record levels, then Bank Bank error: balances Byloosening health insurance reduces its financial restrictions on mergers. the FDIC also promoting the best capitalized and profitable and federal authorities not weak responded to an increasing number of institutions and organizations or institutions equipped bank deposits so weakened. insolvent during Theconsolidation Degli Anni ' 80 was particularly strong.-consolidation in the banking sector Continuedinto and then in the nineties, but it is important to point out that the trend in the Forcesdriving 1990 especially 1980 forces. In fact in many ways the years 1980 and 1990 were the worst and best RS Assolut (or) for the banking sector. in the Decade of 1980, the banks under legal restrictions and regulatory Andoutdated fight adverse difficult economic conditions. several banks and l. S & Wereunprofitable many errors. But mid of 1990s I saw late several factors Aconvergence an atmosphere Conduciveto created mergers. First, in contrast to the eighties, nineties in the afternoon were famous, if banks were highly profitable, has money in cash flush and infavorable interest rate and economic environment to enjoy. In fact Performancefrom draws from 1993 of the Bank until the end of the Decade (and beyond) more would put profitability (figures 9 and 10).Second remove s Riegle-Neal Interstate banking and branching Barriersto enables geographic Diversificationthrough Manyorganizations operations to consolidate and acquisitions. Third never increase a recording of Pushedmarket market valuations stocks by banks and the arsenal of banks their shares use unprecedented level, Encouragingmany as currency to acquire other banks companies difficult (Figure 11). This was true especially, if Managersbelieved had their own stocks of companies a cheap Preis.Umgekehrt, Managersof companies that buy sell Khanh constant value sales to maximise accounting reviews could. even if these conditions exist, further consolidation further relatively quickly, while she was Partiallyoffset of the Banque by an increase in the number of business start-ups. at the end of the Decade however, several Eventsappeared had considerable dampening effect on the merger of the Bank's activities and the pace of consolidation in the industry. First you might be Y2K worry grief, which is delayed after the start of the Newmillennium mergers. then, in March 2000 during the operations of the Reverseditself registration approach. At the end of the year 2003, the number to 48% fallen 7.842 declined (Figure 1). distributed by dimension, occurred almost all the decline of bank sector community (company with less than $1 billion in assets in 2002 dollars), special in the smallest size (less than $100 million in 2002). This figure includes not only organizations 2.262 (Includingmultibank holding companies), which due to failure, but the letters sent, the fusion Alsoindividual have been deleted in other cards with the help of the FDIC; But excluding remained of insolvent institutions, the financial support of the open WithFDIC. ,,.