The paper aims at acknowledging the efficiency effects of bank privatization upon the entry of strategic foreign investor. Thus, a broad experience from the developing countries is reviewed. General conclusion is that the foreign capital infusion improves the profit and cost efficiency of the banks. The paper also investigates the various methodologies that academics employ when they investigate the topic.Privatization, Foreign capital, Cost and profit efficiency, Measurement

Assist. Ph.D c. Marjan Petreski

Research Papers in Economics

English

Assessing the Evaluation of Polish Commercial Banks. National Bank of Poland Working Paper

Bank Privatization and Productivity: Evidence for Brazil. World Bank Policy Research Working Paper 3666,

Bank Privatization with Foreign Capital in Poland – Pros and Cons. Bank I Kredyt, National Bank of Poland,

Banking Efficiency in Transition Economies: The Role of Foreign Ownership.

Determinants of Commercial Bank Interest Margins and Profitability: Some International Evidence. Cited in:

Effects of Foreign Banks Entry on Bank Performance in the CEE Countries. Bank of Estonia Working paper,

Efficiency of Financial Institutions: International Survey and Directions for Future Research.

Foreign Bank Entry and Bank Efficiency in Croatia: A Fourier-Flexible Function Stochastic Cost Frontier Analysis. Croatian National Bank Working Papers W-9,

Foreign Bank Entry: Experience, Implications for Developing Countries, and Agenda for Further Research. The World Bank Research Observer,

Foreign Entry into Chinese Banking: Does WTO Membership Threaten Domestic Banks?

How Does Foreign Entry Affect Domestic Banking Markets?

Performance and Efficiency:

Privatization Matters: Bank Performance in Transition Economies.

Privatization Matters: Bank Performance in Transition Economies. Working paper,

State Bank Transformation in Brazil – Choices and Consequences. World Bank Policy Research Working Paper 3619,

State Ownership and the Financial Performance on Privatized Banks: An Empirical Analysis. Paper presented at the World Bank/Federal Reserve Bank

The Dynamics of Foreign Bank Ownership: Evidence from Hungary. World Bank Policy Research Paper,

The Economics of Bank Privatization. Working Paper Series,

The Technical Process of Bank Privatization in Maxico.

ENTRY OF BANK FOREIGN CAPITAL IN DEVELOPING ECONOMIES: MEASURING PROFIT & COST EFFICIENCY