DP816 Economic Transformation and the Reform of the Financial System in Central and Eastern Europe

Author(s): Istvan P. Székely
Publication Date: July 1993
Keyword(s): Eastern Europe, Economic Transformation, Financial Reforms
JEL(s): G21, P34
Programme Areas: Applied Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=816

The paper investigates those aspects of economic transformation and long-term economic development where financial institutions can and should make a contribution. It also investigates the financial services industry as a sector and tries to point out the conditions which can enable financial firms to perform these tasks properly. Banks, or any other financial firms, will become competitive and innovative only if the market conditions force them to do so. On the other hand, they will be unable to compete if they themselves do not have proper access to resources, production technologies and the appropriate infrastructure, and a supportive legal environment to carry out the necessary product and technology innovation.