BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
No 7/2000:
Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience
Iftekhar Hasan ()
and Katherin Marton ()
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.
Keywords: banking; transition; efficiency; privatisation; Hungary; (follow links to similar papers)
41 pages, June 29, 2000
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