Scandinavian bank subsidiaries in the Baltics: Have they all behaved in a similar way?

The Baltic banking sectors are dominated by the subsidiaries of Scandinavian banks. Before the crisis in 2009, these banks were part of the shock creators in the Baltic countries, and later they became shock absorbers. Since the crisis, the question on the particularities of the business models adopted by foreign-owned banks has been often raised. This research analyses the similarities and differences between the business models of the Scandinavian bank subsidiaries in the Baltics. The main focus was to identify whether the subsidiaries of each bank's Baltic group acted in a similar way or not during the period of 2006–2014. Banks in Lithuania, Latvia and Estonia are strongly dependent on the decisions of the parent banks in the Baltic region. The implications of this policy towards the subsidiary banks within the country can be positive if the group's innovations are implemented in the Baltic region. However, the implications can also be negative if the parent bank makes inadequate decisions in regards to the situation of the country and does not take into account the needs of the country.