Advances in Economics and Business Vol. 4(11), pp. 591 - 598
DOI: 10.13189/aeb.2016.041106
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The Determinants of the Foreign Banks' Expansion in South Eastern Europe: Do Greek Banks Still Follow Their Customers Abroad or Not?

Stefanos Fotopoulos ^1,2,*, Fotios Siokis ¹, Harry Papapanagos ^1
1 Department of Balkan, Slavic and Oriental Studies, School of Economics and Regional Studies, University of Macedonia, Greece
² Department of Real Estate, National Bank of Greece, Greece

ABSTRACT

The paper deals with the factors that led to the great penetration of Greek banking sector in South Eastern Europe during 2000-2007. We investigate the validity of the follow the customer hypothesis. Based on the eclectic theory, after controlling for ownership advantages, we found that host country conditions, opportunities in the host financial markets and risk conditions are proved to be significant determinants. Our findings indicate that although follow the customer hypothesis does exist, the utilization of location advantages can better explain Greek banks' expansion.

KEYWORDS
Eclectic Theory, International Banking, Transition Economies, Greek Banks

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Stefanos Fotopoulos , Fotios Siokis , Harry Papapanagos , "The Determinants of the Foreign Banks' Expansion in South Eastern Europe: Do Greek Banks Still Follow Their Customers Abroad or Not?," Advances in Economics and Business, Vol. 4, No. 11, pp. 591 - 598, 2016. DOI: 10.13189/aeb.2016.041106.

(b). APA Format:
Stefanos Fotopoulos , Fotios Siokis , Harry Papapanagos (2016). The Determinants of the Foreign Banks' Expansion in South Eastern Europe: Do Greek Banks Still Follow Their Customers Abroad or Not?. Advances in Economics and Business, 4(11), 591 - 598. DOI: 10.13189/aeb.2016.041106.