Banking Reform in Central Europe and the Former Soviet Union (Central European University Press Book)

This study analyzes the main requirements placed on Central and Eastern Europe's financial systems during their transition to a market economy. It assesses the financial reforms already carried out in the countries of Central Europe, their adaptations of Western institutional models, and the lessons to be drawn from their experiences for the "second wave" reformers in the former Soviet Union and the Balkans. From Berlin to the Bering Strait, the business of banking has sprung to life. This analysis considers the impact of banking reform on macroeconomic stabilization and the suitability of universal banks, the role of banking regulation and the advantages of 'narrow banks' during transition, the cleaning up of bad debts, and the reform of the payments system. The book assesses the lessons which can be drawn from reforms in Central Europe for the later reformers in the former Soviet Union and the Balkans. It considers the impact of banking reform on macroeconomic stabilization and the suitability of German-type universal banks; the role of banking regulation and the advantages of 'narrow banks' during transition; the cleaning-up of bad debts; bank privatization and reform of the payments system. Five chapters follow which review the experience of some of the 'second-wave' countries: Estonia, Georgia, Romania, Russia and Ukraine.

The contributors to this volume confront the main requirements placed on Central and East European financial systems during the transition to a market economy. Researchers have a unique opportunity to engage in comparative analysis, as different countries are approaching the building of their banking systems in very different ways.
The 'first wave' of Central European reformers looked to the West for a model of how to transform their state-controlled banking systems so as to make them suitable for the needs of the market. These reforms, though far from complete, are now sufficiently advanced for lessons to be drawn from them by the reformers in the former Soviet Union and Balkans. Here leading practitioners and financial advisers analyze the Central European experience and consider its implications for the 'second wave' of reformers.

CONTENTS List of Contributors Acknowledgements 1 Introduction 2 The Banking System, Credit and the Real Sector in Transition Economies 3 Financial Sector Design, Regulation and Deposit Insurance in Eastern Europe 4 Lessons from Bad Loan Management in the East Central European Economic Transition for the Second Wave Reform Countries Comment on Mizsei's 'Lessons' 5 Banking Privatization Policy in Poland and Czechoslovakia 6 Payment System Reform in Poland 7 Reforming the Banking System in Estonia 8 The First Stage of Banking Reform in Russia is Completed: What Lies Ahead? 9 Banking Reform in Ukraine 10 Banking Reform in the Republic of Georgia 11 Banking in Romania Index "The book assesses the lessons which can be drawn from reforms in Central Europe for the later reformers in the former Soviet Union and the Balkans. It considers the impact of banking reform on macroeconomic stabilization and the suitability of German-type universal banks; the role of banking regulation and the advantages of 'narrow banks' during transition; the cleaning-up of bad debts; bank privatization and reform of the payments system." "Five chapters follow which review the experience of some of the 'second-wave' countries: Estonia, Georgia, Romania, Russia and Ukraine."--Jacket This study analyzes the main requirements placed on Central and Eastern Europe's financial systems during their transition to a market economy. It assesses the financial reforms already carried out in the countries of Central Europe and their adaptations of Western institutional models.