"For
years the Italian banking system was described as a petrified
forest—gloomy, immobile and rooted firmly in the
past", thus wrote The Economist, Britain's
most influential weekly, in its August 31, 2006 edition.
Valuations of Banks in Mergers Luca
Francesco Franceschi
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Luca
Francesco Franceschi
The
valuation of the exchange ratio of banks in mergers entails
the use of criteria and valuation methods to determine the
intrinsic value of the enterprises concerned. Moreover,
the application of several valuation methods, as is usual
in professional practice, allows identifying a range of
values within which the exchange ratio may be reasonably
placed. It is, however, the responsibility and duty of the
firm's administrators concerned with the merger, to establish
the definitive exchange ratio. Valuations of banks in mergers
are carried out, taking into account some established general
rules for the purpose of valuation and the specific context
within which they are to be found.
Takeovers and Bidding Firms' Shareholder
Returns: Thai Evidence Amporn Soongswang
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Amporn
Soongswang
This
study features the impact of successful takeovers on the
Stock Exchange of Thailand (SET). The study investigates
the bidding firms' performances during a period of 12 months,
before and after the takeover, and measures Abnormal Returns
(ARs) using an event study approach, applying two models
and three parametric test statistics. The results suggest
that Thai successful takeover effects are creating wealth
for the bidding firm's shareholders. The examination of
after the announcement month shows positive rather than
negative ARs, suggesting that the bidding firm's shareholders'
wealth is persistent. This study also provides new evidence,
indicating that the market responds positively to takeover
news, four and three months prior to the announcement month,
according to the model, leading to ARs of approximately
4.25% and 3.03% per month for the bidders, depending on
the metric.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
