An investigation on the effectiveness of bank mergers as a tool of enhancing perfomance.

Abstract

Mergers and acquisitions have become a major strategic option for struggling banks. The continued failure o f banks after merging brought attention to the issues of whether bank merger improve the performance of the bank. The study therefore aimed at finding whether bank mergers improves profitability, liquidity and capital adequacy. The study revealed that bank mergers improve performance on the aspects of profitability, liquidity and capital adequacy when using primary data and only improves profitability and liquidity when using secondary data. The study therefore concluded that bank mergers improve performance. The study recommended for further study on the subject matter.