Abstract and Keywords
This chapter explains the functioning of the banking sectors in the European transition countries. First, we reflect on the thirty-year history of transition banking from the creation of banking institutions out of the planning structures through the effect of the global financial crisis and the post-crisis challenges. We show that experiences across the region are by no means uniform, both with respect to the path since transition started and the current state of the industry. Second, we focus on the state of the banking industry when transition is finalized and show the similarities and differences between banking in this region and elsewhere. Finally, we analyze financial inclusion as one of the critical issues that affects contemporary banking in the region.
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