1.0 INTRODUCTION Many countries have implemented financial liberalization policies and opened their doors to foreign banks. Many restrictions on entries of foreign financial institution have been removed due to globalization. The penetration of foreign banks keeps on increasing gradually since early 1990. For example the average share of total assets held by foreign bank in Latin America and Asia increased from 26% in 1997 to reach a peak of 38% in 2002. (Nam Jeon, Maria Pia and Ji Wu, 2011). The