@techreport{Koetter2005Evaluating,
abstract = {German banks experienced a merger wave throughout the 1990s. However,
the success of bank mergers remains a continuous matter of debate. In this paper
we suggest a taxonomy as how to evaluate post-merger performance on the basis
of cost efficiency (CE). We categorise mergers a success that fulfill simultaneously
two criteria. First, merged institutes must exhibit CE levels above the average of
non-merging banks. Second, banks must exhibit CE changes between merger and
evaluation year above efficiency changes of non-merging banks. We employ this
taxonomy to characterise (successful) mergers in terms of various key-performance
and structural indicators and investigate the implications for three important
policy issues. Our main conclusions are twofold. First, approximately every
second merger is a success. Second, the margin of success is narrow, as the CE
differential between merging and non-merging banks is one percentage point.},
author = {Michael Koetter},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {G34; G33; G28; G21; L44; 330; Banks mergers; regulation; distress; cost efficiency; Germany; Bank; Fusion; \"{U}bernahme; Kosten-Wirksamkeits-Analyse; Wirtschaftliche Effizienz; Sch\"{a}tzung; Deutschland},
language = {eng},
number = {2005,12},
title = {Evaluating the German bank merger wave},
type = {Discussion Paper, Series 2: Banking and Financial Supervision},
url = {http://hdl.handle.net/10419/19745},
year = {2005}
}
