EVALUATING MERGERS AS A TOOL TO STRENGTHEN AND MODERNIZE THE PALESTINIAN BANKING SYSTEM, AN ANALYTICAL STUDY OF PALESTINIAN LOCAL BANKS: 2010-2017

Abstract

The study aimed to identify the importance of using mergers and acquisitions strategies in order to strengthen and modernize the banking industry, Through evaluation and analysis of the results of the merged Palestinian banks, by using the descriptive analytical approach as well as the inductive and deductive approach. The study concluded that the circulars issued by the Palestine Monetary Authority mainly which relate to the raising of the minimum paid -up capital of local banks had a positive role in and was the main motivation towards these mergers and acquisitions. The mergers and acquisition that took place in the Palestinian banking sector had resulted in a significant improvement in data and financial indicators as well as the competitiveness of domestic merged banks and reflected positively on the national economy. Based on these results, the study recommended the need to redouble the efforts of the Palestine Monetary Authority by using literary persuasion at certain times, and through the development of laws and regulations that encourage and stimulate mergers and acquisition to create stronger banking entities that are capable of facing the challenges of competition and financial crises and other banking risks, at other times. Moreover, national banks and large-scale expatriate must play a more active role in the process of economic development and work to maximize their economic role and expand the value of productive projects that require large funding through granting syndicated loans and establishing joint ventures.