How important are foreign banks in the financial development of European transition countries?

Ilko Naaborg ...

This paper analyzes the development of the banking sector in European transition countries. We find that, although bank assets increased during the 1990s, credit to the private sector remained relatively low. Foreign-owned banks have become major players in the financial system of these countries. However, foreign bank presence and financial development in general vary considerably among the transition economies. Foreign-owned banks have, in general, higher profitability levels than domestic banks. Furthermore, it appears that foreign and domestic bank performance tend to converge.

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Year of publication:	2003
Other Persons:	Naaborg, Ilko (contributor)
Publisher:	Munich : Univ., Center for Economic Studies [u.a.]
Subject:	Internationale Bank \| International bank \| Finanzsektor \| Financial sector \| Systemtransformation \| Economic transition \| Bank \| Unternehmenserfolg \| Firm performance \| Osteuropa \| Eastern Europe \| 1995-2000