Effects of Bank Mergers in the UK: Analysis

Effects of Bank Mergers in the UK AnalysisIntroductionThis musical theme takes a look at effects of Bank Mergers in the UK. It every last(predicate) overly shows how depository financial institutions be affected by mergers and their effects on sell sideline footsteps and customers.It besides takes a look at how banking comp whatsoever mergers champion bring close improvement which is passed on to the customers. The main aim of the cover is to analyze the effects of Bank Mergers. It in any case takes a look at the environmental factors which forego to the mergers pickings drift.Aims and ObjectivesThe aim of this paper is to analyse who the beneficiaries of a bank merger are and the live analysis of the merger. It analyses the costs which are involved with the merger and its effects on the customer. The paper also deduces whether the sell involvement rates are non influenced by the effects of mergers. moreover it also looks at how different banking products outho use be affected by mergers. The objectives of this work areTo review the extant conceptual frameworks and models associated with Bank MergersTo site how mergers affect the relationship in the midst of banks and their customersTo analyse the cost analysis associated with the mergers of BanksTo learn the external factors which lead to mergers taking place in the midst of banksLiterature refreshBank Mergers are usually subjected to anti contention or fair laws if they are piece to be limiting the field for competition. The key to a bank merger is that it should bring about benefits to the sector instead of restrict it. thither should be synergy mingled with banks instead of tightening the intertwine and making it tough for everyone. If there are no savings creation passed on to the customers accordingly there is no use of a bank merger. There guide been scenarios where bank mergers were not permitted by the Competition bursting charge as the customers would not benefit fr om the merger. (Competition Commission 2001). The regulatory bodies consume to correspond that all gains from the merger do not benefit the integrated bank but are passed on to the customers. There is a lot of test when it comes to bank mergers and identifies the relationship between efficiency and price changes after a merger has taken place. According to Farrell and Shapiro (1990) prices and retail interest rates toilette fall plainly if there were lower marginal costs sooner the merger of the two banks. Mergers are known to have failed if they dont bring about any savings or benefit to the customers. Mergers are not just to the customer if the interest rates for customers are higher. The efficiency of merging banks influences the competition in the market. Bank mergers lead to bad conditions for the consumer if the merger does not call efficiency. If a bank records efficiency gains after a merger then it brings about price improvements. Bank mergers tend to affect certai n banking products in different ways.Research SettingThe look into is based upon the UK retail banking market. It examines the bighearted and small banks and takes a deep look at the mergers which took place over the last few years and the mergers which failed to take place. Both mental synthesis societies and UK retail banks are analyzed as they all offer different retail banking services. The investigate only includes banks that are in the UK retail banking market. The research also takes a look at the mergers which occurred between the small construct societies as it is easier to conform to entropy for that. The research has limited adding the mergers between bigger banks. search QUESTIONSIn order to make sure that the research is conducted properly we have to set a number of key questions so that the research exit be able to answer them.To identify how mergers affect the relationship between banks and their customersTo analyse the cost analysis associated with the merge rs of BanksTo analyse the external forces which lead to mergers between banks search METHODOLOGYThis particular assignment follows the traditional research methodological analysis which allows the research to be conducted in various layers one after the other. The prototypic one is the philosophy of Positivism where a researcher adopts the stance of a scientist who has to evaluate everything in a philosophical manner and go outs the evolutionary cover of how things are do. The interpretivism philosophy is where things are created due to the interaction between individuals.The research looks at all the issues associated with mergers within the banking retail market. the entropy is self-possessed by means of proper research. There is the expect to gather denary as puff up as qualitative data in order to prove the theories and conclusions. research APPROACHThe research is conducted by examining all the data in a systematic formatting. Most of the data is present in documenta ry format along with information available in various journals and papers. All the data needs to be interpreted in a proper unionised manner and needs to be separated in order to chance the gist of the research.RESEARCH STRATEGYThis research paper takes an in-depth look at the effect of mergers between banks and how it affects the banking products in the UK. It also examines how it can affect the interest rates in the banking sector. The paper also takes a look at the external factors which push the market in favour of mergers. It examines factors such as bear market which leads to share prices falling, dire economic situation which lead to problems, bad balance sheets which lead to a drain of capital, mergers which take place mainly due to help two troubled banks i.e. Lloyds TSB and Halifax, losses suffered by the investment arm of banks, collapse of big corporations which lead to a half m charter effect, hedge funds making losses and lastly due to the damages divisions which do not do well. It also examines how the retail interest rate is affected if a merger does not go well.ETHICAL CONSIDERATIONSIt is natural for me to follow a proper code of conduct before issue ahead with my research process. There is a fine line between ethical and unethical research. The information gathered volition be done with the consent of everyone and no laws shall be broken to obtain the data. I shall ask all the people interviewed to sign waiver forms and to give me indemnity from any potential problems. A point to bear in mind is not to intimidate any of the subjects or to harass them in handing over resilient information.DATA COLLECTIONThe plan is to contact all of the various building societies and a few of the big banks which merged in the not so recent past. I need to visit them all and collect information on the types of products they have. It would help to visit someone from the corporate headquarters as retail banks would not have the competent staff which would allow me to gather the information I need. Higher ranked officials at the various banks can only give me information about how their bank products were affected and how mergers in the retail banking sector leads to different interest rates.Data will be collated through both qualitative and quantitative questionnaires, series of interviews, documentary analysis. I would also need to do a walkthrough with people from the various banks and building societies so that I can get the right idea. The questionnaires will be quite straight forward and will only comprise of a few limited questions which are closed ended. The interview process will not take long and will only be a one on one session which is also close ended. The only problem is to schedule everything within a particular beatline. There are a lot of people to interview and that is one reason wherefore it is crucial for me to limit the time I spend on all my interviews so that I can get everything done really fast. It is also interesting to know that both questionnaires and interviews will generate different answers so special attention will have to be paid to both. muniment samples are a must to be collected from the various banks in the area. The data collected will be from both simple and lowly resources.Primary DataI will gather all the primary data by simply gathering all the information via personal visits to the various banks and building societies which have been created as a result of a merger between two banks. It will be useful to celebrate out how the banks were able to change their policies and how the merger affected their interest rates. The cost analysis will also be done after taking a look at the before and after status of the merged entities.Bank personnel will be giving me their valuable time so it would help me save time by only sticky to close ended interviews for the session. This will make it easier for both parties. The banks should hopefully pop the question me with docume nts I need to support my work and allow me to create my quantitative data.Secondary dataSecondary data will be gathered with the help of external sources. It is essential to check out proper databases which bring off with the type of historical data required for my analysis of the retail banking sector. The outdo idea for me is to base my work conducted by a researcher on the same topic. It also helps to do a bit of reading up on the topic so that I would know what this research entails. It is self-explanatory that I wont be able to get all my data from people so I would need to gather information from journals, databases, unobjectionable papers, etc. some of the data can be cited from text found in the documents supplied by the banks.DATA ANALYSISThe data needs to be examined one by one so that mistakes are not made. There are plenty of key points which can be examined only by going through it with a fine tooth comb. Data can be analysed in the form of charts, tables etc.CONCLU SION AND RECOMMENDATIONFinally the research can be summarised as the sort who will allow me to understand why mergers take place between banks and how the retail banking sector is affected. I will be able to make my conclusions after I have gone over everything at the end of the study.TIME FRAME OF RESEARCHThe research program needs to be conducted within a ad hoc timeline. Due to limitation of time and the amount of legwork to be conducted I need to finish my research within 22 weeks. This gives me plenty of time for stripping and to jot all my information down on paper. If I do not finish my research on time it will persist everything and create various problems.