Cross border bank mergers and acquısıtıons' fınancıal effects

Due to negative effects that could affect the country's economy such as creating barriers to the country's fiscal policy objectives, performing operations that trigger crisis during the crisis period, creating a pressure group that directs policies of the government, creating an unhealthy competitive environment, limiting the distribution of resources within the country, affecting adversely target banks' financial conditions or causing bankruptcy of those banks due to the crisis in acquirer country, cross-border bank mergers and acquisitions hold significant importance. Motives triggering cross-border bank mergers and acquisitions include; following customers, defense, take advantage of market opportunities, diversifying and/or reducing risk, high information cost, removing authority restrictions, common origin, expectation of increased effectiveness, the high costs of information technology in the banking sector, content, achieving economies of scale, expectation of synergy, strategy for entering market in a new country, expectation of profit from the buying process after privatization, target country indicators (expectation of rising GDP, level of use of banking services, banking sector profitability ratios). Market-based method which calculates the return of shareholders, studies based on financial statements, the method of clinical studies and surveys conducted with managers have been used for measuring the performance of mergers and acquisitions. Ratio analysis, parametric methods (Stochastic Frontier Approach, Distribution-Free Approach, Thick Frontier Approach, etc.), and non-parametric methods (Data Envelopment Analysis, Free Disposal Hull) have been used for analysis based on the financial statements of banks. In this study, CAMELS, a kind of ratio analysis, was used for examination of financial impact on three cross-border bank acquisitions (Denizbak, Finansbank, ING Bank (Oyak Bank)) that took place in Turkey. Comperative performance improvements of three banks to the average of commercial banks in Turkey were analyzed for the three years post-acquisition and three years pre-acquisition periods, and the results for there banks are compared with each other. Research results detected similarities for three banks in pre and post-acquisition periods. Three banks' performances reduced in three year post-acquisition period. Also the three banks' performances were above the average of deposit banks' performances in the pre-period and the three banks' performance fall below the average of deposit banks in the post-period. As well as the negative effects of cross-border mergers and acquisitions, target banks performance degradation after acquisition is thought to be the result of post-acquisition and 2008 crisis concurring at the same period and acquirer banks being deeply affected by the crisis. İngilizce anahtar kelimeler: 1-Cross Border Bank Mergers and Acquisitions 2-Banking 3-Performance Measurement 4- CAMELS Analysis 5- Foreign Bank 6- Cross Border Bank M&A 7-Finansbank 8-ING