ABSTRACT
Similar to other transition countries in Central and Eastern Europe (CEE), Poland opened its banking market for foreign participants in 1998. The removal of entry barriers has caused a 53 per cent increase in assets controlled by foreign banks in just two years, with about 70 per cent of total banking assets under foreign ownership in 2000. At the end of 2002, 14 out of 15 banks listed on the Warsaw Stock Exchange had foreign majority shareholders. This rapid transfer of ownership rights lets us focus on the benefits of allowing foreign banks’ entry into transition countries.
