01949cas a2200253 a 4500 AALejournalIMF006218 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451961713 1018-5941 BD-DhAAL BD-DhAAL Jurzyk, Emilia. Inherited or Earned? : Performance of Foreign Banks in Central and Eastern Europe / Emilia Jurzyk, Olena Havrylchyk. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Using a combination of propensity score matching and difference-in-difference techniques we investigate the impact of foreign bank ownership on the performance and market power of acquired banks operating in Central and Eastern Europe. This approach allows us to control for selection bias as larger but less profitable banks were more likely to be acquired by foreign investors. We show that during three years after the takeover, banks have become more profitable due to cost minimization and better risk management. They have additionally gained market share, because they passed their lower cost of funds to borrowers in terms of lower lending rates. Previous studies failed to pick up the improvements in performance of takeover banks, because they did not account for the performance of financial institutions before acquisitions. Mode of access: Internet Havrylchyk, Olena. IMF Working Papers; Working Paper ; No. 2010/004 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/004/001.2010.issue-004-en.xml IMF e-Library