The Legal System of Bank Acquisition in Jordanian Law

Abstract

This study deals with the legal implications of bank acquisition in its representation of important legal models of an important investment and economic nature in the stages of the current time, which have their own rules and foundations which are often different from the foundations and rules of the economy in its normal form, and explains the forms of bank acquisition and explains the difference between the processes of embody and conjoin in bank incorporation, as there are significant differences between them, in that embody means merging a bank with another bank; in the way that entity of the merged bank dissolves into the entity of the merging bank and the rights and obligations of a bank are transferred to the other bank, while in the process of conjoin the personalities of the merged banks expire in a new banking entity. The combination process takes place between a large bank and one or more small banks, as the acquisition can be a degree of voluntary and consensual banking merger between two banks to achieve certain goals under certain circumstances.

       The study shows the legislative shortcomings in the Jordanian legal system and the inadequacy of the texts regulating banking acquisitions, which affects the course of economic and financial activity in the markets, as legislation plays a prominent role in stimulating economic activity and seeks to grow it by enacting the necessary legislation, in order to guarantee the interests of shareholders and creditors through the acquisition process, all of which requires taking legal procedures in relation to these operations.