초록 열기/닫기 버튼
Dodd-Frank Wall Street Reform and Consumer Protection Act(“Dodd-Frank” or the “Act”) was signed into law by President Barack Obama on July 21, 2010. Legislative tsunamis are nothing new for the banking sector. Within the last 30 years, a number of major pieces of federal legislation have fundamentally changed the business of banking. The most prominent examples include the Garn-St. Germain Act of 1982, the Riegle-Neal Act of 1994, and the Gramm-Leach-Bliley Act of 1999. Each successive regulatory overhaul has historically produced a similar result—a significant wave of mergers and acquisitions. Ironically, many of the deals certain to come in the wake of Dodd-Frank will not occur because of the Act’s M&A provisions, but rather, in spite of them. Dodd-Frank includes several important provisions governing bank M&A deals. Rather than encouraging M&A transactions as prior statutes have, the Act erects a number of regulatory barriers to completing them. As discussed below, the Act: (1) imposes a well-capitalized and well-managed requirement on would-be acquirers; (2) establishes concentration limits on liabilities and deposits; (3) directs regulators to block deals perceived to pose a systemic risk; and (4) places a moratorium on the acquisition of “nonbank banks” by commercial firms. At the same time, however, other aspects of Dodd-Frank fundamentally alter the U.S. banking sector such that the Act’s various barriers to M&A transactions may become altogether insignificant. The most critical of these features are: (1) capital constraints; (2) back-to-basics ; and (3) compliance costs threatening the viability of smaller banks. These latter aspects of Dodd-Frank—when combined with (4) ripening economic conditions for industry consolidation—will likely play a leading role in triggering thae next wave of bank M&A activity. This article focus on M&A of financial institutions that are of particular implications in Korea. Korea also need to have large or medium financial institutions except large financial institutions with over 10% of market share by debt criteria promote M&A.
키워드열기/닫기 버튼
Too-big-too-fail, well-capitalized and well-managed requirement, concentration limits, regulators, systemic risk factor, capital constraints, Back-to-Basics, too-small-to-succeed
