PERFORMANCE OF ISLAMIC BANKS PRIOR AND POST MERGERS AND ACQUISITIONS: CASE STUDY OF ALSALAM-BMI MERGER

Abstract

The aim of this study is to evaluate the efficiency of Islamic banks before and after mergers and acquisitions focus on BMI and Al Salam bank. The study adapted a quantitative, non-parametric method, in order to estimate the performance of AlSalam and BMI banks post and prior to merger between the periods of 2012-2015 using accounting ratios. The study found that the acquirer bank (Alsalam), increased its risk, and lowered its performance in terms of efficiency. On the other hand, BMI decreased its risk, and improved its performance