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Evolution of Banking Sector Structures within Central-European Countries during Transition

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  • Ko TAKATA

    (Graduate School of Economics, Kyoto University, Japan)

Abstract

In recent years, the financial systems of Central-European countries evolved to a stage where they are regarded as having the common characteristic of amplifying the dominance of foreign capital in the banking sector. Within this study, I will compare banking sector structures and bank privatization policies in Hungary, Poland and Czech Rep. during transition, and attempt to examine the causes that generated the dominance of foreign capital. Firstly, I will make a comparison between banking sector structures and show evidence for an increase in the foreign-owned banks dominance in these countries. Next, I will make a comparison between privatization policies, which are considered as significantly responsible for the increased dominance of foreign-owned banks, and will show that privatization policies in recent years have been converging towards a method involving sell-out to foreign capital. Then, I will attempt to examine the causes of this convergence of privatization policies, from the perspective of ownership and achievement, the relevancy of EU accession, and foreign bank business strategies.

Suggested Citation

  • Ko TAKATA, 2005. "Evolution of Banking Sector Structures within Central-European Countries during Transition," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 1, pages 103-136, July.
  • Handle: RePEc:cos:epaper:v:1:y:2005:p:103-136
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    File URL: http://www.kier.kyoto-u.ac.jp/~ces/jces/01_jces_2005/09_Takata.pdf
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    References listed on IDEAS

    as
    1. Meyendorff, Anna & Snyder, Edward A., 1997. "Transactional Structures of Bank Privatizations in Central Europe and Russia," Journal of Comparative Economics, Elsevier, vol. 25(1), pages 5-30, August.
    2. John P. Bonin & Kálmán Mizsei & István P. Székely & Paul Wachtel, 1998. "Banking in Transition Economies," Books, Edward Elgar Publishing, number 1286.
    3. Erik Berglof & Patrick Bolton, 2002. "The Great Divide and Beyond: Financial Architecture in Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 77-100, Winter.
    4. David Green & Karl Petrick (ed.), 2002. "Banking and Financial Stability in Central Europe," Books, Edward Elgar Publishing, number 2176.
    5. C. W. Neale & S. Bozsik, 2001. "How the Hungarian State-owned Banks were Privatised," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 147-169.
    6. Bonin, John P. & Leven, Bozena, 1996. "Polish Bank Consolidation and Foreign Competition: Creating a Market-Oriented Banking Sector," Journal of Comparative Economics, Elsevier, vol. 23(1), pages 52-72, August.
    7. Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
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    Cited by:

    1. Szabolcs Szikszai & Tamás Badics & Csilla Raffai & Zsolt Stenger & András Tóthmihály, 2013. "Studies in Financial Systems No 8 Hungary," FESSUD studies fstudy08, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.

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    More about this item

    Keywords

    Central-European countries; Transition; Banking sector; Privatization; Foreign bank; EU accession;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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