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Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience

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  • Hasan, Iftekhar

    ()
    (BOFIT)

  • Marton, Katherin

    ()
    (BOFIT)

Abstract

The paper analyzes the experiences and developments of Hungarian banking sector during the transitional process from a centralized economy to a market-oriented system. The paper identifies that early reorganization initiatives, flexible approaches to privatization, and liberal policies towards foreign banks’ involvement with the domestic institutions helped to build a relatively strong and increasingly efficient banking system. Banks with higher foreign bank ownership involvement were associated with lower inefficiency.

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File URL: http://www.suomenpankki.fi/bofit_en/tutkimus/tutkimusjulkaisut/dp/Documents/dp0700.pdf
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Bibliographic Info

Paper provided by Bank of Finland, Institute for Economies in Transition in its series BOFIT Discussion Papers with number 7/2000.

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Length: 41 pages
Date of creation: 29 Jun 2000
Date of revision:
Handle: RePEc:hhs:bofitp:2000_007

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Postal: Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland
Phone: + 358 10 831 2268
Fax: + 358 10 831 2294
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Web page: http://www.suomenpankki.fi/bofit_en/
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Keywords: banking; transition; efficiency; privatisation; Hungary;

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