STRATEGIJE ULASKA MULTINACIONALNIH BANAKA NA NOVA TRŽIŠTA

Multinational bank is the one that owns and controls banking activities in two or more countries. This paper represents a brief systematization of internationalization motives of multinational banks, strategies to enter new markets and the effects of their entry on banking sector of the host country. This paper shows that the following of domestic clients and taking advantage of business opportunities in the recipient market are underlying motives for entry of foreign banks. The most common forms of organization to establish a physical presence in the overseas are branches and subsidiary units. Due to increasingly reassessing of the effects of banking internationalization, in the final part of the paper the attention is paid to advantage and negative effects of the entry of foreign banks into domestic banking sector. For the purpose of comparison, an overview of the results is provided on research of motives, strategies and effects of the entry of foreign banks in the European transition economies