The issue of mergers and acquisitions is more and more frequently present in the Polish press. More and more frequently than ever information comes from the Polish rather than foreign capital markets. Growing competition, being the effect of globalization, have forced businesses to change their tactics. Instead of fighting independently against increasing threats managers come to a conclusion that unification with other partner is more advantageous method of enhancing their competitive position.

The banking sector is one of industries with most spectacular unifications. It is particularly interesting given its specific profile of activity and its importance for the functioning of the whole economy. It can be compared with the blood-vascular system that enables functioning of the whole constitution.

A merger or an acquisition is a complex process that is prepared by numerous different entities. Most important are banks. In the mergers and acquisitions markets they may take the following roles: buyer, seller, adviser or financing party.

Bank acting as seller or buyer is an identical market participant as any other enterprise. The only external obstacle that reduces its capabilities and the amount of capital involvement are banking law regulations. The obstacles arise from a particular role of banking institutions in the country´s economy. As regards a practical side of the transaction the bank - as any other economic entity - must analyse potential profits and threats related to the merger, and, based on this thorough analysis, decide on an eventual transaction.

Bank acting as adviser supports parties of the transaction, i.e. seller and buyer, with its knowledge and skills. Its support increases the likely success of the transaction.

Since a merger or acquisition transaction requires most often substantial funds, sometimes exceeding financial abilities of enterprises, participation and support of banks is necessary. Banks provide financing, i.e. act as intermediaries between those who search for funds and fund holders, or even get involve their own financial resources in the form of credits.