0Bank consolidation / merger of banks
Converting two or more banks as one big bank is called as bank merger or bank consolidation
Example : Dena, Vijaya bank merged with Bank of Baroda
benefits
- Indian banks will get oppurtunity to enter into top 50 Global banks
- better in risk management
- Wide range of Customer services
- more profits
- improve regulation of by RBI
- saves money as few jobs are taken away
Challenges
- Loss of jobs
- If a big bank crumble shooks entire economy
- interest rate increase
