very careful monitoring of soundness of all foreign banks, not only those from nodal countries; a close collaboration of … National Bank of Romania (NBR) with the regulatory and supervisory authorities in the countries of origin of foreign banks … branches; as well as a higher emphasis on the conduct of business of the banks and consumer protection. As for the banks …

supporting the idea that the reform had a positive average effect and increased banks competition intensity during a few years …. However, we also document heterogeneity as some large banks benefited from an increase in their market power. We perform …