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BANK MERGERS AND ACQUISITIONS IN GREECE & THE STATE OF EMPLOYEES DURING THE ECONOMIC CRISIS

Electra Pitoska, Themistokles Lazarides

DOI: 10.22495/cocv10i3siart2

Abstract

The economic crisis has caused great changes in Greek economy, which are obvious in the banking field as well. Under the light of these unpleasant circumstances, the banking system was (and maybe still is) in danger of collapsing, a possibility that would probably affect countries abroad. In order to avoid this collapse, the sustainable banks were further supported and the non-sustainable were purged. This strategy aimed to stabilize the financial system through bank mergers and acquisitions. The strategy chosen to support and purge the banks was to proceed to mergers and acquisitions. These mergers and acquisitions are realized by the bank employees and they are highly related to them as they intend to stabilize the employees’ uncertain future. In October 2012 a field research was realized in order to record the employees’ point of view when it comes to both their profession as it is now and the case of bank mergers and acquisitions. After processing the findings of the research, we extract the following conclusion, among others: bank mergers and acquisitions have a negative impact on the majority of the employees that seem to be worried about the limitation of their professional perspectives, the emergence of bad working conditions and ultimately a possible discharge. The findings of the research confirm the growing anxiety and uncertainty among the bank employees. In case of merger or acquisition, the employees prefer that either of these procedures will be held with another Greek bank rather than with a foreign bank. There is a new “wave” of mergers and acquisitions coming in the banking field in Greece, confirming thus the general sense shared by the community and the outcomes of the economic crisis.

Keywords: M&A, Bank, Greece, State of Employees, Economic Crisis

How to cite this paper: Pitoska, E., & Lazarides, T. (2013). Bank mergers and acquisitions in Greece & the state of employees during the economic crisis [Special conference issue]. Corporate Ownership & Control, 10(3), 30-35. http://doi.org/10.22495/cocv10i3siart2

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