An Economic Analysis of Cross Border Acquisitions Effects on the Performance of Target Banks into the Serbian Banking Sector
Dr. Stamatis Kontsas, Professor Anastasios Alexandridis

Abstract
As one of the leaders of the Serbian transition process, banking sector was the most attractive industry for FDIs in Serbia. Most of the investments came directly from cross-border acquisitions of private and state-owned banks and reached value of approximately EUR 2bn of FDIs. Inflow of foreign capital, know-how and standards completely changed the structure of the banking sector, especially in terms of regulation, quality and structure of the products. Since the start of transition process in early 2001 over 20 cross-border acquisitions were successfully executed. So far, very limited academic research was performed on the analysis and evaluation of the performed transactions especially in the view of future market growth potential, attractiveness of the Serbian banking sector and possibility for further expansion of the banking sector via cross-border acquisition and increase of FDIs.

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