Islamic Banks’ Mergers and Acquisitions – Impacts on Performance and Financial Crisis in the United Kingdom

Kandil, Tarek Taha; Chowdhury, Dababrata

doi:10.1108/s1569-3759(2014)0000095016

Cited by 11 publications

(16 citation statements)

References 17 publications

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“…The post merger banks can sustain the market risk exposure from the global financial crisis (Ab-Hamid et al, 2018) However, another opinion was put forward by (Yusuf & Raimi, 2019) that independent banks outperform merged banks. Likewise, a study conducted by (Kandil & Chowdhury, 2014) that mergers and acquisitions of Islamic banks have a negative effect on the performance of Islamic banks in the long term. (Yusuf & Raimi, 2019) found no positive relationship between bank mergers and acquisitions with bank asset turnover.…”

Section: Various Studies That Have Been Carried Outmentioning

confidence: 99%

Challenges of Islamic Bank Merger in Indonesia: Bocr Approach

Rizal

Firdaus

Yussof³

2021

J. Res. Eco. Islam

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This study aims to determine the opportunities and challenges with the merger of 3 BUMN Sharia Banks into Indonesian Sharia Banks (BSI). This study uses the BOCR (Benefit, Opportunity, Cost, and Risk) approach, part of the Analytical Network Process (ANP) approach. Through this approach, the priority value for each aspect (BOCR) will be obtained. The results of the study show that the Cost aspect has a priority value of 0.261. The benefits aspect (0.257), the risk aspect (0.244), and the lowest priority is the Opportunity aspect with a value of (0.236). Meanwhile, the priority strategy for the merger of these 3 BUMN Islamic Banks is professional Human Resources (HR).

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Section: Various Studies That Have Been Carried Outmentioning

confidence: 99%

Challenges of Islamic Bank Merger in Indonesia: Bocr Approach

Rizal

Firdaus

Yussof³

2021

J. Res. Eco. Islam

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“…Acquirers finish the deal to show power among the competitors, and hubris (overconfidence) can lead to overpayment of a target. Due to the lack of fund, the acquirer needs third-party financing more than the actual value of the acquired company (Kandil and Chowdhury, 2014). That is why the decision to acquirer companies looks more emotional than rational (Srivastava, 2018).…”

Section: Figure 5 Attributes Of Debt Ratiomentioning

confidence: 99%

The aftermaths of acquisition in Indonesia

Syukur

Bungkilo

2020

IJMEF

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Indonesia is entering a new phase of the business competition after the launching of the Government Regulations No. 57 of 2010 about Mergers and Acquisition. A drastic inclination in numbers of acquisition deals indicates that the acquisition is a technique to show power and dignity yet might result in losing focus on improving the operating performance. Therefore, this paper aims to examine the post-acquisition operating performance of acquirer companies. Their financial performances are reflected by financial ratios which are calculated based on the accounting information from the financial statements. Data are gathered from one year to three years prior and following acquisition years and compared the significance using the Wilcoxon signed-rank test. The total population is 322 acquisition transactions. The results show that asset efficiency, the level of debt, and profitability worsen after the acquisition deals, whereas liquidity and stock price are not impacted.

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“…Second, merger and acquisition activities can change the market structure that can affect the profitability of Islamic banks. Natt et al (2007) in Kandil and Chowdury (2014) states that mergers and acquisitions are significant for Islamic banks to grow quickly and profitably because they can create economies of scale or scope so that firms can have better access to capital markets then decrease costs of capital as a financial benefit. Therefore, According to Kandil and Chowdury (2014), ROI and ROE on the merger and acquisition of Islamic banks are higher than conventional banking.…”

Section: Introductionmentioning

confidence: 99%

“…Natt et al (2007) in Kandil and Chowdury (2014) states that mergers and acquisitions are significant for Islamic banks to grow quickly and profitably because they can create economies of scale or scope so that firms can have better access to capital markets then decrease costs of capital as a financial benefit. Therefore, According to Kandil and Chowdury (2014), ROI and ROE on the merger and acquisition of Islamic banks are higher than conventional banking. Furthermore, Mahmood et al (2012) in Kandil and Chowdury (2014) in his research on Islamic banks in Pakistan showed significant evidence of the primary objectives of Islamic banking business sector in mergers and acquisitions is to enlarge synergies.…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, According to Kandil and Chowdury (2014), ROI and ROE on the merger and acquisition of Islamic banks are higher than conventional banking. Furthermore, Mahmood et al (2012) in Kandil and Chowdury (2014) in his research on Islamic banks in Pakistan showed significant evidence of the primary objectives of Islamic banking business sector in mergers and acquisitions is to enlarge synergies. The merger and acquisition activities of the Islamic banking sector considered more on the macroeconomic level compared to microeconomics.…”

Section: Introductionmentioning

confidence: 99%

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Business Valuation of Islamic Banks in Merger Plan To Become An Indonesia’s State-Owned Islamic Bank

2018

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Indonesia needs a sizeable Islamic bank to confront the ASEAN Economic Community (MEA) in 2020, so it can compete with existing Islamic banks in ASEAN. Then there was a plan to merge several Islamic banks into Government's Islamic banks. This study aims to analyze from the business valuation point of view about the Islamic bank's merger plan in Indonesia and to calculate the value of synergy if the bank merged. Company valuation used DCF-FCFE method and PBV. Islamic banks those were simulated merged are BSM, BRIS, and BNIS. Based on the study there is a synergy when the three banks merged. So, the merger plan of Islamic bank is feasible.DOI: 10.15408/etk.v17i2.7238

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Islamic Banks’ Mergers and Acquisitions – Impacts on Performance and Financial Crisis in the United Kingdom

Cited by 11 publications

References 17 publications

Challenges of Islamic Bank Merger in Indonesia: Bocr Approach

Challenges of Islamic Bank Merger in Indonesia: Bocr Approach

The aftermaths of acquisition in Indonesia

Business Valuation of Islamic Banks in Merger Plan To Become An Indonesia’s State-Owned Islamic Bank

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