In this paper, various reactions to the entry of foreign banks were obtained from a survey of ten (10) local commercial banks. While there was increased competition from the foreign banks, there was little evidence to support that their entry has increased the variety of financial services, has brought incremental intermediation activities, and has brought in new technologies and processes. This can be attributed to relatively high returns on equity and substantial potential revenue losses from the local banks. To meet the increased competition, the most preferred reaction of the local banks is through core marketing strategies as foreign banks were seen more of a “marketing problem” rather than a “banking problem.” This paper hopes to reinforce macro economic studies made in the entry of foreign banks.
