Foreign Bank Entry and Performance; with a focus on Central and Eastern Europe

International deregulation in the financial sector has intended to create a level playing field for domestically and foreign owned banks. As a result, one of the most significant developments in the financial sector has been the increased relevance of foreign banking with a physical presence in the host country. Foreign banks play a key role in the Caribbean, Central and Eastern Europe, Central Asia and sub Saharan Africa. This book contributes to the literature on foreign banking by investigating three research questions. First, what is the importance of foreign banks in Central and Eastern Europe? Next, are the motives of foreign banks to become active in Central and Eastern Europe related to the mode of entry? Third, does foreign ownership affect bank profitability and bank efficiency and what is the role of the institutional environment in this respect? Ilko Naaborg is Project Manager Stock Emission/ Assistent to the Executive Board at Triodos Bank, Zeist.