Merger projects developed by the market will be carefully appraised in terms of their current and future financial soundness and the effects on the banks’ situation. For some unlisted cooperative banks, conversion into joint stock companies will be part of a broader transformation of governance also comprising stock exchange listing.
In a fragile environment, care has to be exercised not to take rash action that would, in fact, trigger stress. However correct and necessary they are in terms of ensuring a level playing field for competition, the decisions to be taken therefore have to be examined in terms of their systemic relevance in order to prevent an overreaction.