Financial Sector Reform and Banking Crises in the Baltic Countries

Author/Editor:

International Monetary Fund

Publication Date:

December 1, 1996

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:

Financial sector reform in the Baltic countries is reviewed in light of the banking crises that emerged during the reform period. It is argued that the crises had their roots in the structural deficiencies specific to planned economies and the financial environment that developed before and after these countries regained their independence, thus rendering them largely inevitable. Because of the low level of financial intermediation, however, even the failure of large banks had limited systemic effects and a minor negative impact on output and incomes. The crises slowed down the financial reform process, but brought about a desired consolidation of the banking sector.

Series:

Working Paper No. 96/134

Subject:

English

Publication Date:

December 1, 1996

ISBN/ISSN:

9781451855555/1018-5941

Stock No:

WPIEA1341996

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

52

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