State-Owned Banks from Romania
17 Pages Posted: 22 Oct 2012
Date Written: October 21, 2012
In Romania, as in many Central and Eastern Europe countries, during the communist regime all the banks were owned by the state and their activities were circumscribed by rigid norms. After the communist regime had fallen, the state owned banks had to adapt to a competitive environment. The management inefficiency, the political interests and the corruption led some of these banks to critical situations. Such circumstances convinced Romanian authorities to privatize the banks owned by state. From the seven state-owned banks that activated in the 1990s in Romania, one had to be closed, four were privatized and two are still in the state propriety. In this paper we approach some turning points in the evolutions of these banks. We also try to configure the future of the remained state-owned banks.
Keywords: Ownership of Banks, Transition, Political Interests, Corruption, Privatization
JEL Classification: G18, G21, G32, L33, P34
Suggested Citation: Suggested Citation