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Greek banking sector in the economic crisis and M&As as a solution

Michail Pazarskis, George Drogalas, Alkiviadis Karagiorgos, Efthalia Tabouratzi
Corporate Board role duties and composition , Volume 15, pp 37-44; doi:10.22495/cbv15i2art4

Abstract: This study examines the impact of thirteen mergers and acquisitions in the Greek banking sector which took place during the period of economic crisis: 2008-2014. More specifically, the sample of this study consists of all the mergers and acquisitions that led to the four remaining Greek banks (the acquirers of the above-mentioned transactions) which are: National Bank of Greece, Piraeus Bank, Eurobank and Alpha Bank. These specific banks were chosen due to the fact that after the M&As transactions we were able to compare their financial data. This comparison was made by using eight ratios for statistical tests one-year pre- and post-merger. The results of the study indicate statistically significant improvement in three capital structure and viability ratios, as well as a slight improvement on a liquidity ratio, while there is statistically insignificant change or no improvement on the profitability and efficiency ratios. In conclusion, there was some improvement in terms of capital adequacy and loan structure as far as the total capital employed of the merged institutions is concerned, but without improving the profitability of the banks during the economic crisis in Greece.
Keywords: structure / Viability / economic crisis / transactions / capital / Mergers / Greek Banking

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