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Development and efficiency of the banking sector in a transitional economy : Hungarian experience

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  • Hasan, Iftekhar
  • Marton, Katherin

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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  • Hasan, Iftekhar & Marton, Katherin, 2000. "Development and efficiency of the banking sector in a transitional economy : Hungarian experience," BOFIT Discussion Papers 7/2000, Bank of Finland, Institute for Economies in Transition.
  • Handle: RePEc:bof:bofitp:2000_007
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