Makale özeti ve diğer detaylar.
The main objective of this paper is to analyze the level, structure and effects of FDI in the form of M&A into the banking sector in Bosnia and Herzegovina. The goal was to show positive effects of growing levels of M&A in banking, but at the same time gaps and problems that B&H still faces. We also compare B&H with other countries in the region to determine whether there are significant differences, lessons or consequences of the large share of foreign owned banks for B&H. The results indicate that effects of increasing M&A (FDI) in the banking sector in B&H and the region have been positive. But, the price paid for this has been increased concentration, leading to a region's dependence on a decreasing number of foreign banks, with a possible increase in systemic risk and monopolistic behavior. Still, the lessons are clear: reforms and opening up of domestic markets have spurred growth and development of the banking sector. However, there is a need for countries to insist on good corporate behavior, as well as careful monitoring of potential anti-competitive behavior