Cost and Effectiveness of Banking Sector Restructuring in Transition Economies

Author/Editor:

Edda Zoli

Publication Date:

October 1, 2001

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper analyses the cost and effectiveness of bank restructuring policies in 11 transition countries during 1991-98. It argues that country-specific banking sector features, the size of bad loans inherited from the centrally planned system, and weaknesses in the restructuring policies implemented were the main factors affecting the overall fiscal costs, with the latter two being more significant. The paper finds no significant relationship between the size of restructuring costs and overall improvement in banking sector performance for the sample countries as a whole.

Series:

Working Paper No. 2001/157

Subject:

Bank resolution Banking Commercial banks Credit Distressed assets Financial crises Financial institutions Financial sector policy and analysis Money Nonperforming loans

English

Publication Date:

October 1, 2001

ISBN/ISSN:

9781451857498/1018-5941

Stock No:

WPIEA1572001

Pages:

38

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