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Author: Grujic, Natasa
Title: The effect of the foreign bank entry on economic development. A comparative case of Bulgaria and Serbia.
Date Issued: 2011
Department: Πρόγραμμα Μεταπτυχιακών Σπουδών στις Πολιτικές και Οικονομικές Σπουδές Σύγχρονης Ανατολικής και Νοτιοανατολικής Ευρώπης
Supervisor: Siokis, Fotios
Σιώκης, Φώτιος
Abstract: The banking reform in Bulgaria started at the beginning of 1990s, but because the bad governance, weak regulatory oversight, unsound credit policies, and lack of privatization efforts, the country had a severe banking crisis and a wave of banking failures in 1996- 1997. The adoption of a currency board at the same year stopped the further crisis and made a recovery of the whole banking economy. The country took a stable course to integration in the Euro- Atlantic structures, a process that successfully led to the EU accession in January 2007. The first foreign banks came to the Bulgarian market in 1995. Most banks were privatized between 1998 and 2000. Today, the Bulgarian banking system have 31 banks, which 3 of them are private domestic and 27 are foreign banks (7 of them are just the branches of foreign banks in Bulgaria). Serbia started its transition process in 2000, and it still have a long way to pass. With the transition, first foreign banks came to the market. Since the foreign presence is quite recent, comparing to the other developed countries, the major domestic banks still have strong local presence and high level distribution capacity. Regression analysis which is done in this thesis shows that the foreign banks have the effect on the economic development in both countries. Foreign banks followed their consumers (big foreign investors) and that is one of the reason why they came to the Bulgarian and Serbian market. In order to be more competitive than domestic commercial banks, they decreased their landing rate which had for a consequence the increase of the loans given by foreign banks. But all this is proved for short- term, because the date for Bulgaria and Serbia is limited on 16 and 10 years, respectively.
Keywords: Foreign bank entry
History of Serbian and Bulgarian banking sector
How foreign bank entry effects the development of the banking system
Information: Διπλωματική εργασία--Πανεπιστήμιο Μακεδονίας, Θεσσαλονίκη, 2011.
Appears in Collections:ΠΜΣ Πολιτικές & Οικονομικές Σπουδές Σύγχρονης Ανατολικής & Νοτιοανατολικής Ευρώπης (M)

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