The recent financial crisis brought tsunami to banking industry globally resulting in the bankruptcy being filed by those who were considered as the leaders and looked upon by the world to make and formulate new banking strategies. The financial crisis also brought down the number of merger and acquisitions drastically from 15400 deals in 2007 to 9700 deals in the year 2009 amounting to approximately US $1800. Through review of various literatures, it has been found that merger and acquisitions has negative effect on deposit rates, net income rates, employment sector, top executives leaving their positions, economy, rate of growth, etc.
The recent financial crisis had tremendous effects on all forms of economies. Sunanda Sen (2008) states that current turmoil in the global financial market and its origin from the US financial markets from where it has spread to the whole world, has made it imperative to question the relevance and validity of the neo-liberal theory and policies relating to financial sector. The crisis which is also known as credit crisis and mortgage crisis was the result of deregulation and weak policies in the banking system. ...Show more