Publication overview

Building sound banking in transition countries

Abstract

This working paper collects the contributions made by invited participants (listed above) to a seminar organised by the EBRD's Office of the Chief Economist during the Bank's Annual Meeting held in London on 11-12 April 1995. The seminar begins with a discussion of the interaction among macroeconomic stabilisation, structural reforms and banks solvency which identifies major sources of the widespread emergence of bad loans in transition economies. It then draws upon the views of central bankers on changing the role of government in banking, particularly in establishing effective prudential regulation and supervision. These views are complemented by the perspectives of commercial bankers on their achievements in, and obstacles to, developing market-oriented institutions. The seminar concludes with a region-wide perspective on progress in regulatory reform and bank performance and a discussion of the role of International Financial Institutions (IFIs) in promoting the transformation of banking in transition economies.