Dealing with Financial Fragility in Transition Economies

19 Pages Posted: 31 Oct 2008

See all articles by John Bonin

John Bonin

Wesleyan University - Economics Department

Paul Wachtel

New York University - Stern School of Business

Multiple version iconThere are 3 versions of this paper

Date Written: December 2004

Abstract

We examine the efforts of transition economies to deal with financial fragility and resolve banking cries We characterize the birthing process of banking in transition and the three essential features of banking crises in transition economies: (i) bad loans and the relationship to state owned industries, (ii) development of institutional infrastructure and (iii) credible commitments to resolution and privatization. We then discuss the experiences of seven important transition countries in order to identify the salient features of their efforts to resolve banking crises.

Suggested Citation

Bonin, John P. and Wachtel, Paul, Dealing with Financial Fragility in Transition Economies (December 2004). NYU Working Paper No. EC-04-31, Available at SSRN: https://ssrn.com/abstract=1292614

John P. Bonin

Wesleyan University - Economics Department ( email )

Middletown, CT 06459
United States
203-685-2000 (Phone)

Paul Wachtel (Contact Author)

New York University - Stern School of Business ( email )

44 West 4th St.
New York, NY 10012
United States
212-998-4030 (Phone)
212-995-4218 (Fax)

HOME PAGE: http://www.stern.nyu.edu/~pwachtel

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