Ефектите од спојувањата и преземањата врз перформансите на банките: случајот на Република Македонија

Abstract

The banking sector of the Republic of Macedonia is in the main focus of the dissertation and its evaluation and efficiency are one of the goals of the research. The purpose of the dissertation is to study bank mergers and acquisitions (M&A) in the Republic of Macedonia and to see whether and what kind of implications they have on the efficiency and performance of the target banks and the banking sector as a whole. The main goal of this dissertation is to examine if, during the 2008-2015 period, the commercial banks active on the market have improved their efficiency or not and to elaborate the reasons for the efficiency scores. The banks who have been acquired can be analysed prior to their acquisition and afterwards, in order to get a very clear picture of the effectiveness of the M&A processes in the banking. This research is of great scientific importance due to the fact that there are very few researches done with the DEA methodology regarding the banking sector, and no such research has been completed since 2013. To reach our goal, we used DEA window method, using three inputs (total deposits, interest expenses and non-interest expenses) and three outputs (total loans, interest income and non-interest income), in the period of 2008-2015. The sample consists of 14 commercial banks. Using DEA window method, intermediation approach with VRS assumption, we show that the merger or acquisition in which a bank was involved improved their efficiency as well as the total efficiency of the banking sector. Other than the quantitative results, there are many more qualitative effects of M&A process in the banking, especially if the acquirer is a foreign bank with excess capital. Those effects can be rather positive and synergetic: economies of scale and scope, investment in new technologies, new equipment, education of the banking staff, innovation, but also negative: reputational risks if the acquirer faces some reputational isuues, smaller lending to small businesses and an influence on the interest policy of the country etc. This dissertation also gives an overview of all the different types of M&As in general as well as the motives and reasons to pursue one. The historical overview of the restructuring of the banking sector as well as the regulation and the legal procedures in the process have been also noted. The conclusions conducted from the overall dissertation imply that the entrance of the foreign capital in the banking sector has led to a greater efficiency and better performance of the Macedonian banks.