Foreign-Owned Banks

1. Front Matter

   Pages i-xiv

   PDF

2. Introduction

   • Małgorzata Iwanicz-Drozdowska

   Pages 1-4

3. CESEE Countries: Historical Background, Transition, and Development

   • Małgorzata Iwanicz-Drozdowska

   Pages 5-18

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

   • Paola Bongini

   Pages 19-63

5. Credit Activity of Foreign-Owned Banks in CESEE

   • Małgorzata Iwanicz-Drozdowska, Paweł Smaga, Bartosz Witkowski

   Pages 65-88

6. Impact of Foreign-Owned Banks on Financial Stability

   • Małgorzata Iwanicz-Drozdowska, Paweł Smaga, Bartosz Witkowski

   Pages 89-167

7. Impact of Foreign-Owned Banks on Economic Development

   • Małgorzata Iwanicz-Drozdowska, Paola Bongini, Paweł Smaga, Bartosz Witkowski

   Pages 169-212

8. Concluding Remarks: Who Is the Winner of Foreign Banks’ Presence?

   • Małgorzata Iwanicz-Drozdowska

   Pages 213-215

9. Back Matter

   Pages 217-220

   PDF

This book provides an in-depth analysis of the role of foreign-owned banks for credit growth, financial stability and economic growth in the post-communist European countries. Using data covering 20 countries over the period from 1995 to 2015, the authors analyse the evolution of banking sectors in CESEE after the transformation in the historical context. This helps draw a new picture of the role of financial development and EU accession in that region, being also a lesson for other countries or regions in transition. Additionally, as the Global Financial Crisis has left a stigma in banking sectors, the book shows its impact on the post-communist banking sectors. As the foreign banks dominate the banking sectors in CESEE countries (the stake of foreign-owned banks is below 50% of assets in only five out of 20 countries), their strategies materially impact the development of CESEE banking sectors, which warrants our scientific exploration.

Arriving at a clear concluding point of view on the role of foreign-owned banks and providing insights for future policy of CESEEs towards foreign presence in their banking sectors, this book should be of interest to academics, students, and policymakers. 

• financial stability
• economic development
• banking sectors
• foreign-owned banks
• financial development
• economies in transition
• global financial crisis
• home country
• host country
• parent bank
• EU accession
• subsidiary
• banking
• financial crises

“This valuable book explores the efforts of states and private financial institutions to participate in an unprecedented economic program to expand the European, unified, economic space and improve people’s standard of living.” (Krzysztof Pietraszkiewicz, Chairman, Polish Banking Association, Poland) 

“This monograph offers in-depth insight into the evolving role of foreign-owned banks in central, eastern and south-eastern European countries. Is their presence still a blessing or have they become a curse? The comprehensive approach taken in the analysis shows that there are no easy answers to this.” (Andrzej Kaźmierczak, Member of the Management Boards of National Central Bank of Poland, Poland)  

“The transformation of economic systems in central, eastern and south-eastern Europe at the end of the 20th century constituted one of the most complex experiments in economic history. The scientific analysis of the specific processes—after the opening of financial markets to foreign investors, especially in banks—is of fundamental cognitive significance. This book shows theorists, practitioners and even politicians what happened and the consequences it had and still has for the banking systems of central, eastern and south-eastern Europe and for financial market integration.” (Zdzisław Sokal, Chairman, Management Board of Bank Guarantee Fund, Poland)

 

 

• SGH Warsaw School of Economics, Warsaw, Poland

  Małgorzata Iwanicz-Drozdowska, Paweł Smaga, Bartosz Witkowski

• University of Milano-Bicocca, Milan, Italy

  Paola Bongini

Małgorzata Iwanicz-Drozdowska is a full professor of finance at Warsaw School of Economics, Poland, and the head of the Financial System Department in the Institute of Finance.

Paola Bongini is a professor of banking and finance at the University of Milan-Bicocca, Italy. She is dean of the undergraduate taught course in banking and finance and the postgraduate degree in economics and finance.

Pawel Smaga is an assistant professor in the Institute of Finance at Warsaw School of Economics, Poland, and a senior economist at the National Bank of Poland.

Bartosz Witkowski is an associate professor in the Institute of Econometrics at Warsaw School of Economics, Poland. His research specialization includes panel data analysis and its application in economics and finance.

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