Banking reform and financial sector development in Central and Eastern Europe and EU Accession Countries
Konferenční objektStatus neznámýpublishedDatum publikování
2006
Autoři
Vedoucí práce
Oponent
Název časopisu
Název svazku
Vydavatel
Univerzita Pardubice
Abstrakt
From the empirical evidence on the finance-growth-nexus in European transition
countries, we conclude that financial sector reform, especially of the banking sector, can
contribute to economic growth and speed up transition. Empirical research by Cottarelli,
Dell´Arriccia and Vladkova-Hollar (2005) and others has provided evidence that factors
originating in the banking system, rather than the corporate sector, were responsible for
growth differences in accession and transition economies. In extending the conventional
finance-growth framework and based on observations in New EU-Member States (NMS), we
suggest that strong foreign bank investment and related cross-border credit from parent
banks may have been a substitute for domestic bank growth and thus in supporting real sector
growth in South-Eastern Europe (SEE). Given the massive-scale involvement of foreign banks
in NMS and SEE, more research is necessary in this area.
In SEE countries, economic and bank transition started later than in NMS because of political
circumstances. As evident from the experience in NMS, financial development is not growthsupportive
when the institutional and legal framework given to market participants is not
appropriate. Unsound banking intermediation has a direct impact on economic growth as
such behaviour perpetuates economic stagnation and inefficient use of resources. Unsound
financial sectors in SEE also indirectly hamper economic growth, as they pose serious
obstacles to inflows of foreign direct investment which in turn would contribute to economic
growth. When financial institutions are subject to poor governance and incentive structures,
finance can hardly promote growth. Instead of supporting growth, granting bad loans back to
companies of their owners, for example, leads to resource misallocation, reduced private
sector confidence and results in lower investment and growth. Policies thus should continue
to focus on alleviating the bottlenecks to financial intermediation by guaranteeing stable
macroeconomic conditions and a sound institutional legal and supervisory environment. The
involvement of foreign banks is found to be a major factor for stabilizing the banking sector
and making it fit to support economic growth.
Rozsah stran
s. 122-127
p. 122-127
p. 122-127
ISSN
Trvalý odkaz na tento záznam
Projekt
Zdrojový dokument
Vydavatelská verze
Přístup k e-verzi
bez omezení
Název akce
Veřejná správa 2006 (září 2006, Seč u Chrudimi, Česko)
ISBN
80-7194-882-9
Studijní obor
Studijní program
Signatura tištěné verze
Umístění tištěné verze
Přístup k tištěné verzi
Klíčová slova
banking reform, financial sector, economic growth, transition countries, accession countries