FORMS AND DIMENSIONS OF FOREIGN CAPITAL EXPANSION IN THE BANKING SECTOR OF CENTRAL AND EASTERN EUROPE. A REGIONAL PERSPECTIVE

The paper deals with the foreign penetration in the capital of bank sector in the countries in Central and Eastern Europe. We start with some methodological issues regarding the real measure of foreign penetration, including both the physical presence of foreign banks in the region and cross-border operations of foreign banks. Then we analyze the foreign, international and local claims of all banks reporting to Bank for International Settlements in relation with Central and Eastern Europe, as well as the distribution of these claims: by the currency of claims denomination (local vs. foreign), by country of capital origin, by sector of destination (public sector, private sector, banks), by destination country. The paper ends with some considerations on the foreign banks’ presence in Central and Eastern Europe countries: evolution and present penetration level.