EconPapers    
Economics at your fingertips  
 

Financial sector development in transition economies: Lessons from the first decade

John Bonin and Paul Wachtel

No 9/2002, BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition

Abstract: The first decade of transition witnessed rapid and tumultuous financial sector development.Although, few transition economies have reached the point where institutions and markets fulfill all the functions of market based financial intermediation, progress has been much more rapid than had been anticipated.In many countries, active market-oriented financial institutions function where there was only a state planning mechanism a decade ago. Initial experiences showed that bank privatization programs often failed to achieve independence from government control and from undesirable weak clients.It is now widely accepted that the participation of foreign strategic investors in banking is an effective way of meeting these goals Capital market development is complicated by the need to support the development of institutional infrastructure and regulatory mechanisms while at the same time avoid interfering in the markets.In many instances policy makers expected immature markets and institutions to accomplish unattainable goals.Equity markets cannot be effectively support mass privatization programs.There are still many missing pieces in virtually all of the transition country capital markets. Key words: capital markets, financial sector, privatization, transition economies

Date: 2002-07-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Published in Published in Financial Markets, Institutions and Instruments vol 12, no 1 (2003), pp. 1-66

Downloads: (external link)
https://helda.helsinki.fi/bof/bitstream/123456789/8051/1/105199.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bof:bofitp:2002_009

Access Statistics for this paper

More papers in BOFIT Discussion Papers from Bank of Finland, Institute for Economies in Transition Bank of Finland, BOFIT, P.O. Box 160, FI-00101 Helsinki, Finland. Contact information at EDIRC.
Bibliographic data for series maintained by Minna Nyman ().

 
Page updated 2019-07-09
Handle: RePEc:bof:bofitp:2002_009