Many banks are controlled by families. Being merged or acquired can mean relations losing authority, perquisites and status - perhaps their very jobs. Otherwise there is little compulsion for bank owners and sponsors to merge. Nor has the process gotten very far. Moreover, not all mergers are equal, he adds.
Japanese banks are notorious for maintaining separate personnel departments for years after union.
Putting together two or three bad banks could create just a bigger mess. And after organizational and financial overhauls, too many banks don't change strategy. Finally, the banking environment often retains quagmires - immature regulatory regimes and institutions, cozy relations between bankers and regulators or borrowers, political influences in business. They can bog down the reform momentum. Still, the renewal process is moving forward.