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When two or more Banks come together to address a specific non-performance, the goals of the merged Bank should inform strategic decisions so that they can show positive results within a short time to attract customer confidence.

Their strategic management must integrate both financial performance goals and corporate governance principles to create a sustainable institution. They must not be a performer within a short time, as Banks’ operations depend on customer confidence. If they could understand that with all the resources they deployed, they would do good, then customers would rush to the Bank and the Bank would be doing good.

Below is a structured outline explaining how this should be done:

1. Strategic Vision and Integration Planning
   • Define a clear post-merger vision: Establish what the new entity aims to achieve (market expansion, cost efficiency, innovation, etc.).
   • Cultural and operational integration: Align the organizational cultures, values, and management philosophies to avoid internal conflict.
   • Synergy mapping: Identify overlapping functions, redundant costs, and potential revenue synergies (e.g., cross-selling financial products).
2. Financial Strategy for Performance
   • Capital optimization: Reassess capital adequacy under Basel guidelines and reallocate financial resources to high-return areas.
   • Cost efficiency: Consolidate overlapping branches, technology systems, and administrative functions.
   • Revenue diversification: Use merger scale to expand into new customer segments or digital financial services.
   • Risk management alignment: Integrate credit, market, and operational risk frameworks with unified oversight and compliance.
   • Performance metrics: Establish a balanced scorecard combining profitability, liquidity, and customer satisfaction.
3. Strengthening Corporate Governance
   • Board restructuring: Ensure fair representation from both merging banks and appoint independent directors for neutrality.
   • Clear accountability: Define roles between the board, executive management, and risk committees to prevent conflicts of interest.
   • Transparency: Adopt enhanced financial disclosure and audit systems to build stakeholder confidence.
   • Ethical standards: Create a single code of conduct and compliance structure to maintain integrity and trust.
   • Stakeholder communication: Regularly inform shareholders, employees, and regulators about progress and performance.
4. Human Capital and Leadership Management
   • Leadership continuity: Appoint experienced leaders familiar with both institutions’ operations.
   • Talent retention: Offer clear career paths and incentives to prevent the loss of skilled employees.
   • Training and digital transformation: Upskill teams to manage new systems, fintech integrations, and data analytics tools.
5. Technology and Innovation Integration
   • Unified IT platform: Merge core banking systems, cybersecurity frameworks, and digital platforms efficiently.
   • Customer-centric innovation: Use analytics and AI to improve product customization and service delivery.
   • Data governance: Harmonize customer data protection and privacy standards.
6. Regulatory and Compliance Alignment
   • Adherence to central bank and SEC regulations: Update compliance mechanisms to reflect the new organizational structure.
   • Internal audit restructuring: Strengthen internal control systems for early detection of irregularities.
7. Continuous Evaluation
   • Post-merger performance audits: Measure short-term integration outcomes (cost synergy, ROA, NIM) and long-term sustainability.
   • Governance review: Periodically evaluate board performance, ethical adherence, and risk culture maturity.

Conclusion

A merger bank’s strategic management must act as a balancing engine — pursuing financial performance while embedding strong governance. Success depends on leadership vision, transparent governance, efficient integration, and regulatory discipline.
When executed well, the merged entity achieves enhanced profitability, stakeholder trust, and long-term stability.

Mohammed Shahid Ullah, a senior banker.
can be reached at: rafan3379@gmail.com