Revocation of a Banking License as an Instrument for Regulating Merger and Acquisition Transactions
Natalia Nikolaevna Natocheeva1, Yury Alexandrovich Rovensky2, Yury Yuryevich Rusanov3, Tatiana Viktorovna Belyanchikova4
1Natalia Nikolaevna Natocheeva*, Faculty of Finance, Plekhanov Russian University of Economics, Moscow, Russia.
2Yury Alexandrovich Rovensky, Faculty of Finance, Plekhanov Russian University of Economics, Moscow, Russia.
3Yury Yuryevich Rusanov, Faculty of Finance, Plekhanov Russian University of Economics, Moscow, Russia.
4Tatiana Viktorovna Belyanchikova, Faculty of Finance, Plekhanov Russian University of Economics, Moscow, Russia.
Manuscript received on November 15, 2019. | Revised Manuscript received on November 28, 2019. | Manuscript published on 30 November, 2019. | PP: 8881-8884 | Volume-8 Issue-4, November 2019. | Retrieval Number: D9525118419/2019©BEIESP | DOI: 10.35940/ijrte.D9525.118419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The article analyzes the dynamics of the indicators of the merger and acquisition market in the banking sector, as well as the indicator of revocation of banking licenses. The analysis has shown the outperformance of bank decrease in relation to bank acquisition over the same period, which indicates a significant impact of license revocation on the merger and acquisition market. The article assesses the impact of the merger and acquisition market on the structure of proportional regulation in favor of banks with universal licenses. An increase in the concentration of capital is observed, especially in banks with state participation. The article investigates the methods of calculating the cost of mergers and acquisitions. The authors propose to add two more factors to the already known factors of change in earnings per share due to mergers and acquisitions: the type of license revoked by the regulator as a result of the rehabilitation and goodwill, which should be considered in the merger cost using additional coefficients. This will allow the merger cost to be more accurately determined and provide the investor with additional information for decision-making.
Keywords: License Revocation, Banks, Regulation, Rehabilitation, License Type, Merger Cost, Financial Market.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind.