Development and Efficiency of the Banking Sector in a Transitional Economy: Hungarian Experience
41 Pages Posted: 24 Sep 2007
Date Written: July 7, 2000
Abstract
The paper analyzes the experiences and developments of Hungarian banking sector during the transitional process from a centralized economy to a market-oriented system. The paper identifies that early reorganization initiatives, flexible approaches to privatization, and liberal policies towards foreign banks' involvement with the domestic institutions helped to build a relatively strong and increasingly efficient banking system. Banks with higher foreign bank ownership involvement were associated with lower inefficiency.
Keywords: banking, transition, efficiency, privatisation, Hungary
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