Effect of foreign capital on competition development in the European banking sector

This article explores the specific features of the functioning of foreign banking capital in the markets of the countries in the European Union. An analysis conducted to formalize the influence of the share of assets of foreign banks and banks under the control of a foreign investor in the assets of banking systems of 27 countries in the European Union on the level of competition allows one to assert that there is no single, clearly expressed tendency to influence this share on the level of competition. It has also been established that among 27 coun-tries of the European union, two stable aggregates of countries can be identified, in banking systems of which the share of foreign bank capital practically did not change. It can be argued that the markets of the countries in the European Union, recipients of foreign banking capital, are exhausted from the point of view of further growth in the presence of foreign capital.