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Mergers & acquisitions expectations

Banks may engage in mergers and acquisitions (M&As) or other corporate transactions in order to enhance their business outlooks and viability in the longer term. Individual business decisions drive these transactions and, in the case of M&As, they generally pursue goals such as consolidation and strategic growth.

This publication provides greater detail to banks on the information the SRB may need as such cases progress. It also gives insights into the potential effects on resolvability in selected areas, such as loss-absorption and recapitalisation capacity, information systems, operational continuity and access to FMI services and legal structure.

The SRB works closely with banking supervisors on all such transactions, to ensure proportionality and avoid duplication of efforts. As laid out in the SRB’s Expectations for Banks (EfB) policy[i], any bank engaging in M&As or other corporate transactions should contact the SRB to detail their intentions. This allows the SRB to detect any resolvability concerns on time.

[i] Principle 1.2 of the SRB Expectations for banks (EfB).