Banking in Transition Countries
Modern banking institutions were virtually non-existent in the planned economies of central Europe and the former Soviet Union. In the early transition period, banking sectors began to develop during several years of macroeconomic decline and turbulence accompanied by repeated bank crises. However, governments in many transition countries learned from these tumultuous experiences and eventually dealt successfully with the accumulated bad loans and lack of strong bank regulation. In addition, rapid progress in bank privatization and consolidation took place in the late 1990s and early 2000s, usually with the participation of foreign banks. By the mid 2000s the banking sectors in many transition countries were dominated by foreign owners and were able to provide a wide range of services. Credit growth resumed, sometimes too rapidly, particularly in the form of lending to households. The global financial crisis put transition banking to test. Countries that had expanded credit rapidly were vulnerable to the macroeconomic shock and there was considerable concern that foreign owners would reduce their funding to transition country subsidiaries. However, the banking sectors turned out to be resilient, a strong indication of the rapid progress in institutional development and regulatory capabilities in the transition countries.
|Date of creation:||Oct 2013|
|Date of revision:|
|Publication status:||Forthcoming The Oxford Handbook of Banking 2nd edition|
|Contact details of provider:|| Postal: |
Web page: http://www.wesleyan.edu/econ/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bonin, John P. & Hasan, Iftekhar & Wachtel, Paul, 2004.
"Privatization matters: Bank efficiency in transition countries,"
BOFIT Discussion Papers
8/2004, Bank of Finland, Institute for Economies in Transition.
- Bonin, John P. & Hasan, Iftekhar & Wachtel, Paul, 2005. "Privatization matters: Bank efficiency in transition countries," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2155-2178, August.
- John P. Bonin & Iftekhar Hasan & Paul Wachtel, 2004. "Privatization Matters: Bank Efficiency in Transition Countries," William Davidson Institute Working Papers Series 2004-679, William Davidson Institute at the University of Michigan.
- Paul Wachtel & John Bonin & Iftekhar Hasan, 2004. "Privatization Matters: Bank Efficiency in Transition Countries," Working Papers 04-06, New York University, Leonard N. Stern School of Business, Department of Economics.
- Ralph de Haas & Iman van Lelyveld, 2003.
"Foreign Banks and Credit Stability in Central and Eastern Europe: A Panel Data Analysis,"
DNB Staff Reports (discontinued)
109, Netherlands Central Bank.
- de Haas, Ralph & van Lelyveld, Iman, 2006. "Foreign banks and credit stability in Central and Eastern Europe. A panel data analysis," Journal of Banking & Finance, Elsevier, vol. 30(7), pages 1927-1952, July.
- Abarbanell, Jeffery S. & Meyendorff, Anna, 1997. "Bank Privatization in Post-Communist Russia: The Case of Zhilsotsbank," Journal of Comparative Economics, Elsevier, vol. 25(1), pages 62-96, August.
- Steven Ongena & Jose Luis Peydro & Neeltje van Horen, 2013.
"Shocks Abroad, Pain at Home? Bank-Firm Level Evidence on the International Transmission of Financial Shocks,"
DNB Working Papers
385, Netherlands Central Bank, Research Department.
- Ongena, S. & Peydro, J.L. & van Horen, N., 2013. "Shocks Abroad, Pain at Home? Bank-firm Level Evidence on the International Transmission of Financial Shocks," Discussion Paper 2013-040, Tilburg University, Center for Economic Research.
- Rainer Haselmann & Paul Wachtel, 2007.
"Risk Taking by Banks in the Transition Countries,"
Comparative Economic Studies,
Palgrave Macmillan, vol. 49(3), pages 411-429, September.
- Paul Wachtel & Iftekhar Hasan & Mingming Zhou, 2007. "Institutional Development, Financial Deepening and Economic Growth: Evidence from China," Working Papers 07-17, New York University, Leonard N. Stern School of Business, Department of Economics.
- Bonin, John P. & Hasan, Iftekhar & Wachtel, Paul, 2005.
"Bank performance, efficiency and ownership in transition countries,"
Journal of Banking & Finance,
Elsevier, vol. 29(1), pages 31-53, January.
- Bonin, John P. & Hasan, Iftekhar & Wachtel, Paul, 2004. "Bank performance, efficiency and ownership in transitition countries," BOFIT Discussion Papers 7/2004, Bank of Finland, Institute for Economies in Transition.
- Bonin, John P., 2004. "Banking in the Balkans: the structure of banking sectors in Southeast Europe," Economic Systems, Elsevier, vol. 28(2), pages 141-153, June.
- Popov, Alexander & Udell, Gregory F., 2012. "Cross-border banking, credit access, and the financial crisis," Journal of International Economics, Elsevier, vol. 87(1), pages 147-161.
- Haselmann, Rainer, 2006. "Strategies of foreign banks in transition economies," Emerging Markets Review, Elsevier, vol. 7(4), pages 283-299, December.
When requesting a correction, please mention this item's handle: RePEc:wes:weswpa:2013-008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manolis Kaparakis)
If references are entirely missing, you can add them using this form.