Daniel Ibrahim

The Internationalization of Banking: a Micro-macro Approach Daniel Ibrahim

The purpose of this book is twofold. On the macro side, the author discusses the impact of foreign bank penetration on the financial system by estimating a cross-country panel data for 10 of Central and Eastern European countries (CEECs) between 1997 and 2007. he hypothesizes that increased foreign bank concentration could lead to an increased supply of capital for foreign direct investment and a higher credit supply for the domestic economy. On the micro side, he highlights the relationship between foreign bank penetration, through influencing the local banking market structure, and the performance of the banks operating in this market by measuring a cross-bank panel data for 17 Romanian banks between 1999 and 2006. This estimation intends to give evidence on the structure-conduct-performance (SCP) paradigm. The value of the book lies in (1) providing banking sector data for CEECs and especially Romania, (2) estimating the effect of foreign bank penetration on a country and a sector level and (3) providing evidence on the SCP paradigm.