ABSTRACT
During the reconstruction period, French and Belgian capital held a dominant position in the foreign banking capital. The main impact of the new law on foreign banks was the fact that they were no longer allowed to establish a business presence in Romania as a branch; they could enter the local market only by setting up a separate legal entity incorporated in Romania. During a period of economic liberalization in the 1970s, two foreign banks were allowed to establish branches in Romania: Manufacturers Hannover Trust and Societe Generale. Penetration of foreign capital into the Romanian banking system developed during the intra-war period against the background of intense ideological debates concerning the economic development pattern to be followed by new Romania. Accomplishment of the union of the historical Romanian lands into a national state in 1918 brought about important changes to economic life.
