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

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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: Mergers, Acquisitions, Banks, Ratios, Economic Crisis

Authors’ individual contribution: Conceptualization – M.P.; Methodology – M.P. and G.D.; Validation – A.K. and E.T.; Investigation – M.P.; Writing – M.P. and G.D.; Supervision – M.P.

JEL Classification: G34, M40

Received: 09.05.2019
Accepted: 01.07.2019
Published online: 12.07.2019

How to cite this paper: Pazarskis, M., Drogalas, G., Karagiorgos, A., & Tabouratzi, E. (2019). Greek banking sector in the economic crisis and M&As as a solution. Corporate Board: Role, Duties and Composition, 15(2), 37-44. https://doi.org/10.22495/cbv15i2art4