Role of Foreign Banks in Integration of Banking Industry Cover Image

Uloga stranih banaka u okrupnjavanju bankovne industrije
Role of Foreign Banks in Integration of Banking Industry

Author(s): Roman Šubić
Subject(s): Economy, Business Economy / Management, Financial Markets
Published by: Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku
Keywords: Integration; mergers and acquisitions (M&A); concentration; banking system;

Summary/Abstract: Dynamic development of financial industry in some last ten years that, considering the kind of financial agents, remained bank-oriented represents a sufficient reason to investigate the causes that brought to the present structure of banking system. After having presented theoretical bases of the integration forms and banks connection, the paper analyzes the influence of foreign banks on the development of Croatian bank system. Thus, beside the knowledge of quantitative changes in the banking system, the paper researched the motivations of the banks regarding integration that, among other things, brought to creating the effects of scale and scope economies. However, the concentrations among banks can lead to creation of negative externalities that later become potential dangers for the banking. Pre-cognitions on development of banking system are used to create projection of future banking development while the data basis of the countries from the region enabled the comparative analysis of banks integration in these countries. The conclusion is that the foreign banks have been the largest promoters of bank integration in the Republic of Croatia contributing also to qualitative development of banking market and to deepening of financial market spectrum.

  • Issue Year: 22/2009
  • Issue No: 2
  • Page Range: 296-313
  • Page Count: 18
  • Language: Croatian