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C/F/103. Bank merger case study: Royal Bank of Scotland and National Westminster Bank

WORDS:

4000

DATE:

2005

PRICE:

49.99 GBP

Bank mergers have become a common in a financial service industry and spurred a vast body of literature studying causes, consequences and implications for the future caused by this phenomenon. Overall, the evidence shows that the 1990s have had a tendency of greater economic benefits to the combined banks in comparison with the 1980s. This study attempts to investigate economic effects of the merger of the two largest UK banks occurred in 2000. As a result the new group has become the second largest financial structure globally. The study starts with a comprehensive literature review which covers all major studies of bank mergers beginning since 1980. This creates a base for the methodology part and comparison of obtained results. Authors use an event studies econometric analysis to investigate shareholders wealth effects caused by a merger. Short-run and long-run periods are analyzed. The results show that the merger was a right action undertaken by the management team of RBS. The work is heavily illustrated with tables and graphs. The computation files are also available upon request. This paper would be indispensable to those who study bank mergers and want to use modern techniques to uncover economic benefits resulting from takeovers.

KEYWORDS: f, bank, merger, study, royal, bank, scotland, national, westminster, bank,