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Does Bank Merging Affect Its Loaning Services
#11
It stands to reason that things would not change that much. I think any changes would likely be to your benefit. Recently, my mortgage company sold their interest in mortgages to another company. Since that time, they extended the late payment date and also dropped the premium a bit, so it was to my benefit actually.
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#12
(01-15-2018, 08:06 AM)aecel Wrote: The effect of new policy takes time before it will be implemented. Even if the banks have merged they still need to take good care of their old clients they won't be affected by some changes. The new clients are the one to make adjustments in case the merging banks decided for new policies in loaning services.

Definitely, even if the banks are merging to fix up its financial problems, they are obligated to attend to the affairs of their existing clients whom they already have one business contract with. The new ones matters as well but they aren't going to head any positive direction without carrying their old customers along. It's these old clients that strengthened the foundation of the banks and leaving them behind is going to be a grievous offense.
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#13
(01-14-2018, 08:09 PM)chikatilo Wrote: Last year two major banks merged in my country and the terms on loans for existing customers did NOT change, because they already had established contracts. If the banks had changed anything, clients could have sued them.

The merging process will take 2 years to finalize. It seems kind of long.

I haven't seen or heard of any bank merging happening in my country, but this seems logical to me. You can't just change the contract like that. People would be outraged, and for good reason.
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#14
The loan contract should continue to be the same since it is a written agreement. Unless they make their members sign a new agreement after they merge. The efforts to merge would help their numbers of clients grow as well as their amount of money. They would then have to adopt new policies to follow as a whole. I would assume they would discuss all of the policies they would like to enforce prior to the actual merge.
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#15
(01-16-2018, 09:29 AM)Uyj143 Wrote: I don't know what is the effect if the two company merge, I think it is better if the two company merged because for me they merge for our own good or for there clients good.

I definitely believe so, the merging is for the business good of the banks in question and that of their customers both the existing and new ones. So therefore, I think that on the merge they are seeking to make things more suitable for both their customers and themselves. They are absolutely not going to be stepping on the heads of the existing customers with loan contacts already because it's definitely not going to yield anything positive for them. 

I have reasons to believe that they would be looking to sweeten the loan deal in order to give the customers the opportunity to have more trust in their services as a result of the merge. So customers tend to fear bank merge, with the view of the bank being in fund crisis.
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#16
I think for a bank to change terms substantially after a merger would be a way to lose customers. Banks are smarter than that they are not going to put themselves in a situation where they are going to lose customers right off the bat. They would keep terms essentially the same.
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#17
(01-18-2018, 12:06 PM)kgord Wrote: I think for a bank to change terms substantially after a merger would be a way to lose customers. Banks are smarter than that they are not going to put themselves in a situation where they are going to lose customers right off the bat. They would keep terms essentially the same.

I totally agree with you on this, even if it's paramount that they need policy and terms, they are definitely sure to inform their customers with ample time for them to adjust to such terms and decide whether to continue or drop out of such deals. Imposing it without prior information, would be a very bad business decision that would render a very negative impact on their business.
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#18
(01-18-2018, 10:08 PM)mar06 Wrote: I don't have heard before about merging bank together because what is their purpose if they are two. So there are possibility that merging two bank together may affect their loaning services.

Banks merge for a variety of different reasons. Sometimes it can be beneficial. But there are disadvantages too. Some of the pros of bank acquisitions include increased capabilities, because acquiring something that's already established and working may be better than trying to build it from scratch. Also, banks may decide to merge in order to gain a better distribution and market network. Another reason for acquisitions can be reducing costs. 

When the world financial crisis hit 10 years ago, many companies merged in order to survive in the new unpleasant financial climate.
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#19
You should read the companies website. Mergers are different and it depends on the terms that were agreed on by both the companies. Are they still both individual or using the same name? You should check with a lawyer if your loan agreement still remains the same, because depending to the circumstances it may change.
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#20
There are certain things that come into discussion when two banks are on the verge of merging and one of them is the list of those that will head the board of the bank. Another thing is policies that will bring better life to the bank and that is where I think that the decision that will work better for those banks are made. It is there the new polices that will guide them will be discussed. So, I think the loan policy will be adjusted as well.
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