Question

why Banks are using the concept of merger​

Answer 1

Answer:

Mergers seek to improve income from services, but the increase is offset by higher staff costs; return on equity improves because of a decrease in capital. Acquisitions aim to restructure the loan portfolio of the acquired bank; improved lending policies result in higher profits.

Answer 2

A merger is an agreement that combines two separate, existing companies into a new, larger entity.

The aim of a merger is to create a stronger, single company. A merger is often referred to as a 'merger of equals' as the companies involved usually have a similar size and value.