7 However, value creation from bank mergers and acquisitions has improved over time, possibly because such activities are complex and because lessons have been learnt. 8 Moreover, most of the estimated value gains from bank mergers stem from cutting costs by eliminating overlaps and consolidating backroom operations. 9 In addition, mergers that focus both on activity and geography enhance shareholder value.
All the operational aspects must now be rapidly finalized to permit accurate assessment of its financial capacity and to prevent uncertainty from amplifying the national component of risk premiums, thereby perpetuating financial market fragmentation and the vicious circle between the conditions of sovereign borrowers and banks.