This paper provides a review of merger and acquisition literature that have examined the theories, the impact of M&A towards banking performance, both conventional and Islamic, as well as the factors associated with M&A activity. The authors have been able to review more than thirty investigations over a twenty-year period, from 1993 to 2017. The study is theoretical and analytical in nature and secondary method has applied. Through a literature review, this study provide an account of the theories and main findings of the literature as well as examines the extent to which M&A give impact to the banking performance and highlights some factors contribute to the successfulness of M&A activity. Overall, the evidence reviewed suggests that M&A affect the conventional and Islamic banks in several different ways. This could be explained by different approaches in handling M&A (i.e., domestic or cross border) and various factors contributing to the decision of conducting the M&A activity. As far as the development and increase interest in Islamic finance are concerned, it is perhaps surprising that very little empirical research on M&A in Islamic banking sector. The paper concludes with several recommendations for future research, the most important of which is the need for a systematic effort on conceptual analysis as well as empirical study on M&A in Islamic banking and finance
