New Horizons in Bank Mergers: A Quantum Spherical Fuzzy Decision-Making Framework for Analyzing Islamic and Conventional Bank Mergers and Enhancing Resilience

Abstract

This study explores the implications of merging two fundamentally different types of banks: Islamic and conventional banks. The research aims to provide insight into the unique opportunities and challenges presented by such a merger and to offer strategic guidance for future mergers. A balanced scorecard-based strategic analysis using a Quantum Spherical Fuzzy Decision-Making Approach was used to develop short- and long-term strategic plans for the merged bank. The balanced scorecard included 12 key performance indicators (KPIs) in 4 groups, and the methodology incorporated several questions to guide the analysis. The results of the study offer valuable insights into the potential opportunities and challenges of merging these two types of banks, as well as strategic recommendations for stakeholders at all levels. The study serves as a useful guideline for future mergers between similar or different types of banks. Overall, the findings suggest that a well-planned merger strategy is essential for avoiding challenges and maximizing the benefits of merging Islamic and conventional banks. By integrating the strengths of both types of banks, a merged entity could create a competitive advantage and potentially improve financial performance. However, this requires careful consideration of cultural differences, regulatory challenges, and other factors that could impact on the success of the merger.

Development Aspects of Post-Merger Islamic Banks: A Systematic Literature Review

“…Integrating multiple strengths can create a competitive advantage and potentially improve financial performance. However, this requires careful consideration of cultural differences, regulatory challenges and other factors that can affect the success of a merger (Al-binali et al, 2023). Another benefit of the merger is the opportunity for Islamic banks to expand their customer base and increase their market share (Purnamasari et al, 2022).…”