In recent years, foreign bank participation has increased tremendously in several developing countries. For example, in Argentina, Chile, Czech Republic, Hungary, and Poland, over fifty percent of total banking assets are now in foreign-controlled banks. In regions outside from Latin America and Eastern Europe progress has been slower, but the trend is the same.

 

Though the number of countries embracing foreign bank entry is growing, many questions regarding this process are still being debated, including: what draws foreign banks to a country? Which banks expand abroad? What do foreign banks do once they arrive and how do mode of entry and organizational form affect foreign bank behavior? A number of papers recently produced by DECRG staff in collaboration with others has focused on some of these questions.

 

For more information see the papers listed in the library of documents below.