Towards Market-Oriented Banking in the Economies in Transition

Stern Working Paper Series S-97-2

31 Pages Posted: 29 Jul 1997

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 2 versions of this paper

Date Written: June 1996

Abstract

Privatization of the banking sector is usually viewed as the way to create market oriented banking sectors in formerly planned or transition economies. However, bank privatization is only part of the requisite story. Market-oriented banking requires the disengagement of the state from direct governance of banks (whether they are state-owned or privatized) and the simultaneous development by the state of an effective regulatory framework for the banking sector. At one and the same time, the governments should be getting out of the banking business and getting into the regulatory/supervisory business. It is no wonder that managing these two seemingly contradictory tasks is often so difficult.

JEL Classification: G21, G28, O16, P34

Suggested Citation

Bonin, John P. and Wachtel, Paul, Towards Market-Oriented Banking in the Economies in Transition (June 1996). Stern Working Paper Series S-97-2, Available at SSRN: https://ssrn.com/abstract=38380 or http://dx.doi.org/10.2139/ssrn.38380

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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