What role will the current evolution of banking systems play in the newly adopted EU countries during the historic challenges following enlargement? This book, a blend of economics and political economy, offers a systematic analysis of the current trends in financial intermediation in the countries of the newly enlarged Europe, with particular focus on those policies taken by foreign banks on the one hand, and by regulatory and supervisory authorities on the other. Contents: Foreword Introduction Part I: Intermediation, Firms and Financial Markets Part II: Foreign Banks Part III: Regulation, Supervision and Monetary Policy Index Contributors: A. Beltratti, J. Crespo Cuaresma, R. D#Antonio, J. de Haan, G. Di Giorgio, B. Égert, F. Farabullini, G. Ferri, A. García Herrero, D. Gros, D.T. Llewellyn, D. Masciandaro, D. Mihaljek, F. Mucci, D. Navia Simón, I. Naaborg, L. Papi, V. Pätoprsty, A. Pilková, F. Pissarides, A. Porta, T. Reininger, D. Revoltella, M. Summer, M. Würz