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date: 24 February 2018

Abstract and Keywords

This article examines banking in transition countries. Given the centralized planning systems adopted by Soviet Bloc countries, banking in the transition countries is a relatively recent phenomenon. Attempts were made to establish a banking industry amidst the economic chaos following the fall of Communism in the late 1980s and early 1990s. Unsurprisingly, things went wrong and banking crises occurred. In response, banks were privatized and regulations enacted. It is argued that banking structures in transition countries are now for the most part populated by privately owned (mainly foreign), relatively well-capitalized banks overseen by a set of regulations and supervision.

Keywords: banking industry, transition economics, privatization, banking crises, banking regulation

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