Mahmood asked:

I am a student from the Mara Institute of Technology in Malaysia doing a research study about mergers in the banking industry. I would like to know more about the impact of mergers on banking services, product variety, return on investment and relationship marketing.

Julie King answered:

Recently three bank mergers were proposed in Canada, a move that was viewed by the banks as a necessary step to remain competitive in a global economy.

However, the public had many concerns about the mergers, and in the end, the federal government decided to disallow two of the mergers last year. The third proposed merger is still in the works.

Due to the high level of public interest, you should be able to find a great deal of information online regarding the pros and cons of major bank mergers from a Canadian perspective. Here are a few links to articles and documents that can get you started on your research:

Report of the Task Force on the Future of Canadian Financial Services:
http://finservtaskforce.fin.gc.ca/

The Merger Enforcement Guidelines as Applied to a Bank Merger:
http://strategis.ic.gc.ca/SSG/ct01280e.html

The Competition Bureau and Bank Mergers:
http://strategis.ic.gc.ca/SSG/ct01337e.html

Proceed with Caution:
www.tv.cbc.ca/national/pgminfo/banks2/caution.html

Public Says No to Bank Mergers:
www.cfib.ca/research/reports/justsayno.asp

No Rush to Merge Expected Soon Among Banks:
www.canoe.ca/Mergers98/home.html

I hope that helps you with your project!

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