The Role of Foreign Banks in Poland

Abstract

The paper examines the process of the Polish banking sector's internationalisation, with a particular intention of describing incentives and the impact of foreign banks entry. In order to carry out an assessment of changes in the banking market structure and banks' performance, the study introduces arguments and motivations of foreign capital inflow into local financial systems with implications for the stability and the development of the banking sector. The role of foreign capital in the Polish economy derives from an analysis of the effects of foreign banks penetration, in terms of changes in competitiveness, efficiency, and stability of the banking sector. An assessment of concentration level and development prospects have also been included.