As the level of financial combination and liberalization increased considerably in the 1990s, the number and market share of foreign banks in Lao PDR has increased rapidly. The purpose of this thesis is to estimate the effects of foreign bank presence on the performance of domestic banks and the economy in the Lao PDR empirically. For the first model, a sample of 27 banks over the time period of 2012–2020 is used in the analysis of the effect on the performance of domestic banks, employing a panel data methodology by random effect model. The ...