Aspects Regarding the Motivation and Forms of Foreign Banks’ Penetration in Central and Eastern Europe

Abstract

The transformation process in the Central and Eastern Europe economies after 1989 has generated considerable changes in the bank sector. In all emerging economies in the region, the foreign capital involvement took place first by the way of cross-border flows, and then by direct investments, e.g. foreign banks implantation. The motivations and forms of their penetration change over time, toward a more local involvement of these banks. Nowadays, the expansion is achieved more and more by taking over existing banks threw the privatisation process or acquisitions of smaller private banks.

Keywords

• foreign banks
• Central and Eastern Europe
• Romania
• motivation
• form of penetration.