Capital Markets and Financial Intermediation in The Baltics
Occasional Papers, January 14, 2004
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Bibliographic details
- Authors: Niamh Sheridan, Alfred Schipke, Susan M George, Christian H. Beddies
- Published: January 14, 2004
- Series: Occasional Papers
- DOI: https://doi.org/10.5089/9781589062726.084
Overview and scope
- Study of the financial systems of Estonia, Latvia, and Lithuania in the decade after independence.
- Analyzes unique characteristics of the three Baltic financial systems as they transition into fully functioning, small open-market economies preparing to join the European Union.
- Examines distortions in the systems and evaluates whether the Baltics should move from an almost exclusively bank-based system to one with greater reliance on capital markets.
- Addresses issues of corporate governance and regional integration.
Key findings and themes
- Transformation: The three Baltic countries have transformed into fully functioning, small open-market economies in just over a decade after independence.
- Financial structure: The existing system is described as “almost exclusively bank-based,” prompting analysis of potential shifts toward capital markets.
- Distortions and governance: The study identifies current distortions in the financial systems and discusses corporate governance issues relevant to market development and integration.
Policy discussion and considerations
- Capital markets vs. bank-based system:
- Whether to move from an almost exclusively bank-based system to one that relies more on capital markets is a central question of the study.
- Regional integration:
- The study discusses regional integration implications for the Baltics as they align with EU banking systems and securities markets.
- Corporate governance:
- Corporate governance is highlighted as an important factor for developing deeper capital markets.