Foreign Bank Entry into CESEE Countries in the 1990s and Afterwards

  • Paola Bongini
Part of the Studies in Economic Transition book series (SET)


This chapter deals with the theory and evidence of multinational banking and applies it to the specific experience of the CESEE countries which faced an extraordinary interest by foreign investors willing to enter their banking sectors. The CESEE countries are the unique regional markets in the world where foreign ownership is predominant and where foreign players compete directly with local banks. This chapter aims to present and evaluate the experience of the CESEE countries with respect to foreign banking by looking at the underlying decisions to expand in these countries by major foreign players, mainly Western European banks, and the preferred entry mode. The chapter also takes a microeconomic approach, examining the overall performance of foreign-owned vis-à-vis domestically owned banks.


Acquisition Domestic-owned bank Foreign-owned bank Greenfield Host country Transition 


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© The Author(s) 2018

Authors and Affiliations

  • Paola Bongini
    • 1
  1. 1.University of Milano-BicoccaMilanItaly

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