Application of innovative tools of effective management for merger or acquisition

The situation in the banking sector in the last years are analyzed in the article. The current state of the banking system can be considered as a crisis, because it does not to perform main banking functions. The liquidation of 98 banking institutions are happened during last five years. Negative phenomena in the banking sector impacts on the country’s economy. It has reflected in the lower GDP growth rates, because it uses about 17% GDP for neutralizing banking crises. According on the matrix of solving problems in the banking sector, it has been determined that liquidation of a bank should take place only in the extreme situation. The main goal of the article is to develop innovative tools for effective management of the banking sector to avoid liquidation of banks The optimal solution for many problems in the banking sector are mergers or acquisitions. At the same time, the important point is to obtain a positive synergistic effect. It can only be achieve with the effective management. Innovative approaches to the instruments of realization of merging or acquisitions are proposed in the article. We proposed six stages of the procedure of merging. The first stage is to set optimal objective. The second stage what is prefer merger or acquisition? The third stage are collecting and analyzing information about bank’s history, range of services (pay attention on the most promising), number of affiliates, main shareholders, bank’s image on the national and international level, etc. The fourth stage is selection most competitive banks. The fifth stage is choosing the leading bank. An important point is the choice of an optimal bank for mergers or acquisitions. It is based on the calculation of the factor of choice such as: capital of bank, rate growth of profit, price policy, image and rating, customers, quality and quantity of assets, banks strategy, ownership structure. These 10 indicators are selected by the expert method, which based on the survey. They characterizes the activities of the bank and make it possible to determine the prospects of the bank’s development. Each of the indicators was assigned a ballistic characteristic from 1 to 4. The bank, which is the best in this category, receives four points. Every factor has priority according to Saaty scale. Depending on the main purpose of the combination, the components of the coefficient of choice will have different meanings. Using this coefficient of choice banks can optimize mergers or acquisitions. There are many purposes for mergers or acquisitions. Main popular are the next: avoiding liquidation of a bank is the most important and relevant of them, increasing the size of the bank’s capital, change the product policy of the bank in the direction of expansion, improving the image of the banking institution, to increase of the bank’s share in the market of some services, to reduce of the cost of banking services, to get competitive advantages, to change the ownership structure of the bank, to increase the value of shares of the bank, geographic expansion of the bank, the adaptation for new business conditions. At the sixth stage, the final decision about the choice of the potential object for the conclusion of the transaction. After that, negotiations with the management of the bank begin