Pension systems are a standard part of the macroeconomic and microeconomic environment of developed countries. Pension schemes, particularly developed after World War II and based on continuous funding system are currently getting influenced by the negative changes such as demographic fluctuations, changes in economic growth and high unemployment. These changes put the high burden on economically active population and that increases pressure on the necessary reform. Slovak Republic in order to ensure stabilization of the pension system, taking into account the adequacy of pension benefits, had decided to reform the pension system, which means that was applied combined method of financing of the pensions. This change turned into high transition costs which are significantly destabilizing the pension system and in the short term these costs are deepening the deficit of public finances and also the whole financial sustainability of the pension system. The reform of the pension system required not only the introduction of the funded method of financing of pensions, but also caused changes in the interim financing arrangements. The most important parametric changes made in the Slovak Republic are: linking retirement age to life expectancy, changing of the mechanism of valorisation of pension benefits and changes in the funded pension schemes mainly driven by the global financial crisis. Adopted parametric changes will significantly improve and strengthen the long term sustainability of the pension system and public finances.
The banking and finance sector is one of the most dynamic sectors that is continuously experiencing most of structural changes. Fast consolidation and concentration of banks globally has evoked active discussions on behalf of scientists and practitioners on the effect gained from concentrating on the efficiency and competitiveness of the banking system, financial and microeconomic stability of countries and economic development. Mergers and acquisitions of the banking sector are mostly encouraged by the target to get more authority in the international banking environment, to eliminate competitors from profitable activity and to strive for additional financial benefit for shareholders, to increase the range of the services provided, to use the resources efficiently, i. e. to create the value for shareholders and to contribute to the development of the financial sector. Therefore, the article analyses the bank mergers and acquisitions of the Lithuanian banking sector; it is assessed whether the bank mergers have created the value for shareholders and (or) the financial system. The research that has been carried out shows that mergers and acquisitions of the banking sector are take placing in order to increase the benefit for shareholders and to strive for the economy; the aspect of financial stability of such transactions appears in a short term and is most commonly inspired by the government. Modern Lithuanian banking sector has been formed by means of mergers and acquisitions; strategic investors helped transitive economy countries to guarantee the stability of the banking sector and to achieve the benefit of the economy of scale. Restructuring of the banking activities, i. e. the performance distribution can be a useful measure in ensuring stable activities of both the financial system and the accepting bank – to acquire a market share and to optimise its performance.