Globalization in The Banking Sector of The Western Balkans: A Panel Data Review

Abstract

Introduction: The current paper will provide an overview of the influence of economic globalization and the transnational structure of the banking sector in the Western Balkans (WB), a region where banks play a crucial economic and social role.   Method: The methodology employed incorporates regressive panel data derived from secondary data acquired between 2019 and 2024.   Results: The findings revealed that of the five commercial banks (n=5) experiencing a cross-border profile, the most powerful in terms of total assets, loans, and financial credibility were those with European Union (EU) investments rather than domestic institutions.   Conclusions: Given the current outcomes, it is recommended that policy and monetary practices prioritize enhancing attempts to attract foreign investment while simultaneously strengthening domestic banking capacities to become increasingly competitive and interconnected.