SPECIFICS OF MERGERS AND ACQUISITIONS IN THE BANKING SECTOR OF THE EUROPEAN UNION

Contemporary banking is characterized by constant development and constant changes that occur as a result of globalization that has reached the whole society, and the entire world economy. It is currently going through the most turbulent period since its inception, and because it is influenced by the ever-growing competition, even by other financial institutions, it must adapt to new circumstances. Jobs of mergers and acquisitions are related to various forms of business combinations, indicating the initiation of a complex range of banking services that are manifested in the forms of expansion, contraction, change of corporate control and ownership transformations. Many companies and banks are trying to buy or take over less successful companies / banks at the most favorable conditions in order to increase business efficiency and profitability. Great Depression slowed these processes in 2009., while in 2010. the signs of recovery were showed. This paper aims to present the mergers and acquisitions as a form of organizational transformation that lead to growth and development of banks in the European Union.