Banking Acquisition and its Implications for Global Financial Sector

Abstract

This study explores the dynamics of banking acquisitions and their implications for the global financial sector, focusing on how mergers and acquisitions (M&A) reshape competitive landscapes, influence financial stability, and alter governance practices. It further examines the role of acquisitions in promoting cross-border integration and expanding international capital flows. Amid heightened financial globalisation and recurring crises, understanding the systemic impact of banking acquisitions has become increasingly urgent for regulators, policymakers, and institutions striving to ensure stability and resilience in an interconnected global ecosystem. The scope of this research is primarily centred on the macroeconomic, regulatory, and governance implications of banking acquisitions. It does not provide firm-level case studies or detailed microeconomic modelling of operational efficiency, shareholder value, or customer outcomes, thereby limiting its focus to systemic and institutional dimensions. Key questions addressed in the study include how banking acquisitions influence global financial stability and sectoral resilience, and what governance and regulatory challenges arise from large-scale cross-border acquisitions. Methodologically, the research employs a qualitative approach that combines policy analysis, literature review, and comparative case studies of major international banking acquisitions. Drawing on institutional reports, global financial stability assessments, and regulatory frameworks, the study assesses the systemic implications of acquisitions in shaping the global financial architecture. The findings suggest that banking acquisitions play a transformative role in the financial sector by enhancing integration and growth opportunities, but they simultaneously introduce governance complexities and systemic risks that demand robust regulatory oversight. Looking ahead, future research should explore fintech-driven acquisitions, assess their impact on regulatory harmonisation, and provide empirical evidence on how consolidation influences systemic risk and the transmission of financial crises.