 Corporate Governance in Bulgarian State-owned Banks, 1992-1997Sonya Dilova-Kirkowa Post-Communist Economies, 1999, vol. 11, issue 2, 253-265 Abstract: Among the problems faced by Bulgarian state-owned banks, one can distinguish their poor corporate governance. The latter is analysed in three dimensions, namely ownership and organisational structures, and bank involvement in enterprise restructuring. Unclear delineated property rights and postponed banking privatisation enforced political interference in institutions responsible for managing state-ownership, thus alleviating the transparency of their activities. Exogenously imposed rules of financial intermediation, including forced mergers, seemed to take some time before yielding positive results. But their negative impact was almost immediate, which reflected in deteriorating financial performance of state-owned banks. We argue that the equity structure of state-owned banks determined their investment operations, while deposits from non-financial sector were widely used for refinancing banking sector. It is questionable whether state-owned banks could be regarded as sound in 1992-97, given a lack of proper provisioning till 1996. Both profitability and efficiency ratios of studied five state-owned banks indicated the anticipated problems. Date: 1999 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:11:y:1999:i:2:p:253-265 Ordering information: This journal article can be ordered from Access Statistics for this article Post-Communist Economies is currently edited by Roger Clarke More articles in Post-Communist Economies from Taylor & Francis Journals |
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