Intensive international activity of banks caused by fairly recently lifted financial restrictions in many countries has been a subject ofgreat scientific interest ever since. The article describes various short-term consequences of foreign bank penetration in the financialmarkets of some of the regions of the world. The authors pay specific attention to the reasons and modes of foreign bank entry inemerging market and transition market economies as well as to the differences in the impact of such entry on the stability and efficiencyof financial systems and economies of the countries of Asia, Latin America, Central and Eastern Europe and Russia. Researchmethods: systemic, comparative and logical analysis.KEYWORDS: foreign bank entry, emerging market economies, bank competition, banking sector stability
