ABSTRACT
The banking sector in Estonia has been among the frontrunners in understanding the opportunities and risks of the internationalization process. The internationalization of banks in Estonia has been twofold. On one side, foreign banks have intensively entered into the Estonian banking market, and currently more than 86 per cent of the aggregated share capital of Estonian banks is owned by foreign residents. At the same time, some Estonian banks have tried to enlarge their activities in neighbouring foreign markets. The aim of this chapter is to analyse the foreign-entry strategies of Estonian banks and foreign banks entering into the Estonian banking market. We also discuss main entry motives and possible effects of foreign bank entry in Estonia and other CEE (Central and Eastern European) transition countries.
