dc.description.abstract |
Bank merger regulation is one of a major subject area that attracts the application and
enforcement of the relevant laws from both financial sector and the general competition
regulation. The current trend of deregulation, liberalization and privatization hastened the
proliferation of banking sector mergers, while the inherently sensitiveness of the sector urges
tight regulatory and enforcement institutions on bank mergers. This paper employed
qualitative approach to assess the existing substantive and enforcement institutions.
Accordingly the study find out that the existing Ethiopian bank merger substantive rules and
enforcement institutions suffers from various deficiencies that obstruct the effective regulation
and execution of the imminent bank mergers (both voluntary and policy-induced bank merger
schemes). The substantive legal frameworks roughly outdated, incomprehensive, haphazardly
chopped in different legislations and suffer from loopholes which makes it not capable to
effectively deal with the complex and alarming bank merger issues. Likewise, the existing
enforcement institutions, lacks a clearly defined guide rules and code of conducts on
procedures, jurisdictional interaction, transparency, accountability and cooperation platform
among them, which pose a potential risk of regulatory uncertainty, parallel decisions and
jurisdictional conflict between and among these enforcement organs. Accordingly, the
researcher recommends a need to reform the existing bank merger regulatory frameworks, in
line with the well adopted principles and concerns in the regime. Similarly, there is a need to
strengthen the existing enforcement institutions and develop cooperation platform among
these organs in order to regulate the regime in effective and efficient manner. |
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