POSSIBLE CORRELATIONS BETWEEN THE ENTRY OF FOREIGN BANKS AND ECONOMIC RESULTS OF THE BANKING SYSTEM

The main propose of this article is to establish the impact of the entry of foreign owned banks and the economic results of the banking system. We consider this subject of significant importance mainly now in the context of the globalization of the financial markets and the manifestation of the economic crisis. In order to determine the impact we consider important to determine the presence of correlations between the variables chosen. The database is constituted on a sample of 15 countries Albania, Belarus, Bosnia, Bulgaria, Croatia, Estonia, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia, Slovenia, Turkey, Ukraine Hungary on a 6 years time period 2004-2009. The variables used in this study are the number of foreign banks, share of foreign banks, nonperforming loans ratio and return on equity ratio. The conclusions of this study show that the entry of foreign banks has positive impact on the equity ratio. In this analyze we used bank level data and we consider this article to be the premises for further research at individual bank level.