Scandinavian Working Papers in Economics
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Institute for Economies in Transition, Bank of Finland 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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