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Theoretical Considerations Concerning Foreign Banks Entry on The Domestic Banking Market

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  • Liliana DONATH

    (West University of Timisoara, Faculty of Economics and Business Administration)

Abstract

Less attention has been awarded to the foreign bank entry into the Central and Eastern European countries. Therefore the present study deals with the effects these banks have on the domestic markets. Once foreign banks enter a target market, they lose sight of their reasons for approaching that certain market, although these are different and many: the most common reason for foreign bank entry is the need to support the client base that extend their investments beyond the borders, other are a reaction to rising international competitive pressures and also the search for new business opportunities, reflecting the belief in the growth potential of the transition economies. The paper concludes that the benefits overcome the negative effects, having a positive effect on the host country economy and financial market.

Suggested Citation

  • Liliana DONATH, 2008. "Theoretical Considerations Concerning Foreign Banks Entry on The Domestic Banking Market," Timisoara Journal of Economics, West University of Timisoara, Romania, Faculty of Economics and Business Administration, vol. 1(1), pages 109-119.
    • Handle: RePEc:wun:journl:tje:v01:y2008:i01:a05
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    References listed on IDEAS

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