Applying the merger according to the optimal financial portfolio to improve banking performance

Résumé

Merger is one of the main financial solutions for weak institutions, which can provide assistance in improving their performance. Therefore, the impact of the merger process requires measuring and identifying its impact on the future performance of institutions, including financial institutions. This research aims to identify the impact of the merger of banking institutions on financial performance, This study was applied in a sample of Malaysian commercial banks, numbering 8 commercial banks, and the impact of financial integration on their financial performance was calculated by adopting the method of scenarios for the optimal financial portfolio, and the current financial portfolio was compared with the optimal financial portfolio. Integrating with Binkha is one of the modern methods that give a clear picture of the process of integration and building the optimal financial portfolio that increases the return and reduces the risk. The study recommended the application of financial integration for banks with poor performance in order to improve their performance, in addition to expanding the application of financial integration to include Bigger scenarios for larger banks to include the entire banking sector.