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

Abstract

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