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

Iftekhar Hasan () and Katherin Marton

No 7/2000, BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition

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.

Date: 2000-04-15
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Published in Published in Journal of Banking & Finance vol 27, no 12 (2003), pp. 2249-2271

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