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...