A Review on the Merging of Malaysian Banks

Table of Contents
Table of Contents i
Table of Figures ii
Table Index iii
Acknowledgement iv
Abstract 1
Chapter 1: Introduction 2
1.1 Introduction 2
1.2 Overview of Mergers and Acquisitions (M&A) 3
1.3 Research Problem 3
1.4 Objectives of the Research 4
1.5 Scope of the Study 4
Chapter 2: Literature Review 5
2.1 Introduction 5
2.2 The Roles and the Consequences of Bank Mergers 5
2.3 The Challenges to Bank Mergers Success 8
2.4 The Post-Merger Performance of the Local Banks and the Foreign Banks 11
2.5 Impact of Bank Merger to the Future 15
Chapter 3: Research Methodology 20
Chapter 4: Discussion, Analysis and Finding 21
4.1 The Role and the Consequences of Bank Mergers 21
4.2 The Challenges to Bank Mergers Success 26
4.2.1 Foreign Competition 27
4.2.2 Competition from Capital Markets 27
4.2.3 Profit squeeze 28
4.2.4 Targeting New Lending Segments 31
4.2.5 Venturing into New Activities 31
4.2.6 Consolidation 32
4.3 Local Banks and Foreign Bank Post Merger 35
4.4 The Impact of Bank Merger to the Future 49
Chapter 5: Conclusion & Limitation 52
5.1 Conclusion 52
5.2 Limitation 53
Reference 54

Table of Figures
Figure 1: Research Methodology Framework 20
Figure 2: Number of Banks 23
Figure 3: Merger Program for Domestic Banking Institutions, as of the end of 2001 24
Figure 4: Objectives of Restructuring the Banking Sector 25
Figure 5: Foreign Banks' Branch Network – Current and Potential 42
Figure 6: Market Share of Domestic Loans 43
Figure 7: Ranking by Asset Size (2002, 2005) 44
Figure 8: Ranking by ROEs 45
Figure 9: Net Profit/ Branch Comparison (excluding Citibank) 45
Figure 10: Net Profit/Employee Comparison 45

Table Index

Table 1: Return-On-Assets Ratios Of The Top 10 Banks In 2001 37
Table 2: Return-on Equity Ratios of the Top 10 banks in 2001 39
Table 3: Key Financial Indicator for the 10 Anchor Banks 46

Abstract
Mergers and Acquisitions (abbreviated M&A) exercises taking place in Malaysia