State-Owned Banks in the Transition : Origins, Evolution, and Policy Responses

This book reviews state banking systems over the last decade in the transition economies of Europe and central Asia. It includes seven case studies of individual state banks, that have been reformed or privatised over the last decade, and compares the varied approaches used. It highlights the significant costs and market distortions associated with continued state ownership, and illustrates how these challenges have been addressed in difficult economic and political contexts. The findings indicate that restructuring of state banks has proved a time consuming and costly policy, and that governments are better off moving swiftly to privatise or liquidate their remaining state banks rather than attempting to reform them.