Dealing with Financial Fragility in Transition Economies
SYSTEMIC FINANCIAL CRISES: RESOLVING LARGE BANK INSOLVENCIES, D. Evanoff, G. Kaufman, eds., World Publishing, 2005
14 Pages Posted: 4 Aug 2006
We examine the efforts of transition economies to deal with financial fragility and resolve banking cries We characterize the birthing process of banking in transition and the three essential features of banking crises in transition economies: (i) bad loans and the relationship to state owned industries, (ii) development of institutional infrastructure and (iii) credible commitments to resolution and privatization. We then discuss the experiences of seven important transition countries in order to identify the salient features of their efforts to resolve banking crises.
Keywords: Banking, bank crises, transition economies
JEL Classification: G21, P34
Suggested Citation: Suggested Citation