 Experiences of Transition and Integration in the Financial System: Implications for North Korea (in Korean)Timothy Cogley ()
No 2014-32, Working Papers from Economic Research Institute, Bank of Korea Abstract: This study reviews the experiences of transition and integration in the financial sector in the three East European countries, that is, Hungary, Czech Republic, and East Germany. In more detail, it analyzes the following experiences: the establishment of two-tier banking system, privatization of commercial banks and the management of non-performing loans, and the reform of exchange rate regime. The implications for North Korean transition and integration are drawn as follows. North Korea should replace a mono-banking system with a two-tier one by dividing the Chosun Central Bank into two parts: the function of a central bank and that of a commercial bank. Following this division, the part of commercial bank should be privatized using the method of sale to outsiders. The problem of non-performing loans needs to be addressed properly with a sufficient amount of financial resources. It is advised to establish an exchange rate regime that provides a long-term economic stability and competitiveness. For this purpose, a fixed exchange rate regime followed by a floating one should be considered as a default option. Keywords: North Korean Economy; Financial Reform; Financial Integration (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bok:wpaper:1432 Access Statistics for this paper More papers in Working Papers from Economic Research Institute, Bank of Korea Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.