The Development of the Financial Sector in Southeast Europe : Innovative Approaches in Volatile Environments

KfW has been assigned responsibility by the German government and several other donors for projects designed to reconstruct the financial landscapes of Southeast Europe. These activities are recognized as quite successful in building sustainable financial institutions that serve the small end of the market, with special emphasis on microenterprise and small business. The KfW-managed projects have contributed to the overall stability of financial sectors and to economic recovery and growth through employment creation and investment. This book reviews experience gained and analyses the reasons for the successes achieved, options for further improvement, and scope for replicability in other transition and developing economies. A particularly interesting feature is that relatively small amounts of public funds can catalyse financial markets in volatile environments. Front Matter....Pages I-XVII Introduction....Pages 1-6 Front Matter....Pages 7-9 The Financial Sector and Economic Development: Evidence from Southeast Europe....Pages 11-41 Front Matter....Pages 43-49 Competition and Complementarity: KfW’s Approach to Financial Sector Development in Southeast Europe....Pages 51-59 Providing Long-Term Funds to Local Financial Institutions — The European Refinancing Funds in Southeast Europe....Pages 61-69 Strengthening Financial Sectors in Transition Countries: IFC’s Contribution....Pages 71-77 EBRD’s Micro and Small Enterprise Lending Programmes: Downscaling Commercial Banks and Starting Greenfield Banks....Pages 79-87 Surviving the Crisis: Microfinance in Bolivia, 1999–2002....Pages 89-100 Institutional Development and Commercialisation — Optimal Exit for Equity Financiers....Pages 101-111 Front Matter....Pages 113-117 Market Entry in Southeast Europe — Raiffeisenbank Belgrade....Pages 119-124 Sustainable Microfinance Banks — Problems and Perspectives....Pages 125-134 Equity Participation in Microfinance Banks in Southeast Europe and Georgia — A Strategic Option for a Large Private German Bank?....Pages 135-139 Front Matter....Pages 141-146 The Contribution of Science and Research to the Development of Microfinance....Pages 147-157 Best Practice Principles for Microfinance Impact Analysis....Pages 159-177 Enterprise Level Impacts of Financial Sector Projects in Southeast Europe....Pages 179-194 Impact of Financial Sector Projects in Southeast Europe — Effects on Financial Institutions and the Financial Sector....Pages 195-221 Front Matter....Pages 223-223 Summary and Conclusion....Pages 225-234 Back Matter....Pages 235-246