Question

from the case study TurkeyEconomicBankandFortisBank:Managing aComplexMerger

link to the case (you can copy and paste this link ): https://services.hbsp.harvard.edu/api/courses/739341/items/218012-PDF-ENG/sclinks/13985cdfd06ab6dd3d3abb33c936b437

please answer the following question

1. Explain the envisaged benefits of the merger of BNP Paribas and Colakoglu Group with

the Turkish Economy Bank (TEB).

2. Examine the inflation rate for Turkey and explain how that might impact bank decision

making in regards to providing loans. Does this adequately explain the long list of bank

collapses in 2000 and 2001 as reported within the case study? For an overview of

inflationinTurkeypleasereferto:

https://fred.stlouisfed.org/series/FPCPITOTLZGTUR

What is the current inflation rate like in Turkey now?

3. Consider the split of an unviable bank into a Good Bank and a Bad Bank in a country

called BlueLand. At this stage you have not offered the Good Bank to any banks within

BlueLand to purchase or merge. As a consultant to the BlueLand bank regulator,

explain the strategy you would suggest to ensure a smooth sale of Good Bank.

4. With a bank merger, when considering the bank that will be taken over i.e. Unviable

Bank, which assets in the Balance Sheet will have an adjusted figure? Which liabilities

will have an adjusted figure? Explain your reasoning.

5. When banks merge what are the impacts on overall staff numbers and computer

systems?

6. Explain the ice-cream theory of bank resolution and how it is important in the workout

of a bank that is troubled.

7. Provide an overview of the top 20 banks in Spain (but not the Central Bank) e.g. bank

size, bank type, domestic or foreign etc.