BANK CONSOLIDATION IN 2016?

IFR (November 21st, 2015) is reporting on the announcement by DZ and WGZ to merge, two of Germany's co-operative banks. IFR also reports YTD European bank M&A activity is a paltry $15 billion, down some 40% from one year ago. US bank M&A activity measured by number has fallen by 14%, to almost $22.5 billion, but by number of deals has risen slightly to 295 deals. 

In my experience, bank M&A is driven by a variety of factors, but more and more the cost of IT and the cost of regulatory compliance is encouraging  banks to come together.  A recent survey by Bank Director and Crowe Horwath indicated that some 60% of bank directors felt the environment for a deal was favourable.

Comments