State-owned Banks in the Transition : Origins, Evolution, and Policy Responses
Many of the distortions in poorly performing economies do not originate in the banking sector, but where state banks still control a large share of the resources in the banking system, they continue to pose a risk to macroeconomic and fiscal stabil...
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Washington, DC: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/01/6301203/state-owned-banks-transition-origins-evolution-policy-responses http://hdl.handle.net/10986/14851 |
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okr-10986-148512021-04-23T14:03:13Z State-owned Banks in the Transition : Origins, Evolution, and Policy Responses Sherif, Khaled Borish, Michael Gross, Alexandra ACCOUNTING ACCOUNTS AGRICULTURAL OUTPUT AGRICULTURE BALANCE OF PAYMENTS BANK ASSETS BANK CAPITAL BANK LENDING BANK LOANS BANKING OPERATIONS BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BANKS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKS CENTRAL PLANNING CENTRALLY PLANNED ECONOMIES COLLATERAL COMMERCIAL BANKS COMPETITIVE MARKETS CONSUMER PRICE INDEX CONTRACT ENFORCEMENT CORPORATE GOVERNANCE DAMAGES DEBT DECENTRALIZATION DEMAND DEPOSITS DEPOSITS DEPRECIATION DOMESTIC CREDIT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC STRUCTURE EMERGING MARKETS EXPORT FINANCING FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SYSTEMS FISCAL DEFICITS FISCAL POLICIES FOREIGN BANKS FOREIGN EXCHANGE GDP GOVERNMENT POLICIES HARD BUDGET CONSTRAINTS HOUSING INFLATION INFLATION RATE INFLATION RATES INTEREST RATES JOINT STOCK COMPANIES JUDICIAL SYSTEMS LAWS LEASING LEGISLATION LIQUIDITY LIQUIDITY SHORTAGES MACROECONOMIC STABILITY MONETARY INDICATORS MONETARY POLICY MONETARY SYSTEMS OWNERSHIP STRUCTURE PER CAPITA INCOME PORTFOLIOS PRIVATIZATION PUBLIC ENTERPRISES PURCHASING POWER RECAPITALIZATION SAVINGS SECURITIES SHAREHOLDERS SOLVENCY SPECIALIZED BANKS STATE BANKS STATE ENTERPRISES STATE OWNERSHIP STRUCTURAL CHANGE TECHNICAL ASSISTANCE TOTAL OUTPUT TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT TREASURY BILLS TURNOVER TAXES UNEMPLOYMENT VALUATION Many of the distortions in poorly performing economies do not originate in the banking sector, but where state banks still control a large share of the resources in the banking system, they continue to pose a risk to macroeconomic and fiscal stability. State banks are typically vehicles for patronage that worsen the prospects for competitive market development. Alternatively, these state banks can be ineffective shells that fail to perform a useful intermediation role once the government imposes effective hard budget constraints and a modern supervisory system. The most problematic state banks have been agricultural and industrial banks, whose original role was to finance state farms and industrial enterprises that employed large numbers of people and served as the backbone of the socialist economic mode. Banks now show stronger growth in deposits and capital in many countries in Central and Eastern Europe and the Baltics, suggesting that these countries have put into place structures that have helped to restore confidence in banking systems among creditors, investors, and the public. Recommended strategies are that Governments need to design strategies to reduce state banking in order to help create a stable banking environment. Governments should take measures to improve the business environment as part of a broad overall strategy to strengthen the financial system and end state ownership of banks. Such measures include providing support to improve corporate governance, reform judicial systems, build registries of collateral, reinforce creditors' rights and contract enforcement, modernize accounting and auditing practices, reduce administrative obstacles to business registration, and modernize bankruptcy laws. 2013-08-06T21:20:30Z 2013-08-06T21:20:30Z 2003 http://documents.worldbank.org/curated/en/2003/01/6301203/state-owned-banks-transition-origins-evolution-policy-responses 0-8213-5499-X http://hdl.handle.net/10986/14851 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication Europe and Central Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTS AGRICULTURAL OUTPUT AGRICULTURE BALANCE OF PAYMENTS BANK ASSETS BANK CAPITAL BANK LENDING BANK LOANS BANKING OPERATIONS BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BANKS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKS CENTRAL PLANNING CENTRALLY PLANNED ECONOMIES COLLATERAL COMMERCIAL BANKS COMPETITIVE MARKETS CONSUMER PRICE INDEX CONTRACT ENFORCEMENT CORPORATE GOVERNANCE DAMAGES DEBT DECENTRALIZATION DEMAND DEPOSITS DEPOSITS DEPRECIATION DOMESTIC CREDIT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC STRUCTURE EMERGING MARKETS EXPORT FINANCING FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SYSTEMS FISCAL DEFICITS FISCAL POLICIES FOREIGN BANKS FOREIGN EXCHANGE GDP GOVERNMENT POLICIES HARD BUDGET CONSTRAINTS HOUSING INFLATION INFLATION RATE INFLATION RATES INTEREST RATES JOINT STOCK COMPANIES JUDICIAL SYSTEMS LAWS LEASING LEGISLATION LIQUIDITY LIQUIDITY SHORTAGES MACROECONOMIC STABILITY MONETARY INDICATORS MONETARY POLICY MONETARY SYSTEMS OWNERSHIP STRUCTURE PER CAPITA INCOME PORTFOLIOS PRIVATIZATION PUBLIC ENTERPRISES PURCHASING POWER RECAPITALIZATION SAVINGS SECURITIES SHAREHOLDERS SOLVENCY SPECIALIZED BANKS STATE BANKS STATE ENTERPRISES STATE OWNERSHIP STRUCTURAL CHANGE TECHNICAL ASSISTANCE TOTAL OUTPUT TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT TREASURY BILLS TURNOVER TAXES UNEMPLOYMENT VALUATION |
| spellingShingle |
ACCOUNTING ACCOUNTS AGRICULTURAL OUTPUT AGRICULTURE BALANCE OF PAYMENTS BANK ASSETS BANK CAPITAL BANK LENDING BANK LOANS BANKING OPERATIONS BANKING SUPERVISION BANKING SYSTEMS BANKRUPTCY BANKS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKS CENTRAL PLANNING CENTRALLY PLANNED ECONOMIES COLLATERAL COMMERCIAL BANKS COMPETITIVE MARKETS CONSUMER PRICE INDEX CONTRACT ENFORCEMENT CORPORATE GOVERNANCE DAMAGES DEBT DECENTRALIZATION DEMAND DEPOSITS DEPOSITS DEPRECIATION DOMESTIC CREDIT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC STRUCTURE EMERGING MARKETS EXPORT FINANCING FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SECTOR REFORM FINANCIAL SYSTEMS FISCAL DEFICITS FISCAL POLICIES FOREIGN BANKS FOREIGN EXCHANGE GDP GOVERNMENT POLICIES HARD BUDGET CONSTRAINTS HOUSING INFLATION INFLATION RATE INFLATION RATES INTEREST RATES JOINT STOCK COMPANIES JUDICIAL SYSTEMS LAWS LEASING LEGISLATION LIQUIDITY LIQUIDITY SHORTAGES MACROECONOMIC STABILITY MONETARY INDICATORS MONETARY POLICY MONETARY SYSTEMS OWNERSHIP STRUCTURE PER CAPITA INCOME PORTFOLIOS PRIVATIZATION PUBLIC ENTERPRISES PURCHASING POWER RECAPITALIZATION SAVINGS SECURITIES SHAREHOLDERS SOLVENCY SPECIALIZED BANKS STATE BANKS STATE ENTERPRISES STATE OWNERSHIP STRUCTURAL CHANGE TECHNICAL ASSISTANCE TOTAL OUTPUT TRANSACTION COSTS TRANSITION ECONOMIES TRANSPORT TREASURY BILLS TURNOVER TAXES UNEMPLOYMENT VALUATION Sherif, Khaled Borish, Michael Gross, Alexandra State-owned Banks in the Transition : Origins, Evolution, and Policy Responses |
| geographic_facet |
Europe and Central Asia |
| description |
Many of the distortions in poorly
performing economies do not originate in the banking sector,
but where state banks still control a large share of the
resources in the banking system, they continue to pose a
risk to macroeconomic and fiscal stability. State banks are
typically vehicles for patronage that worsen the prospects
for competitive market development. Alternatively, these
state banks can be ineffective shells that fail to perform a
useful intermediation role once the government imposes
effective hard budget constraints and a modern supervisory
system. The most problematic state banks have been
agricultural and industrial banks, whose original role was
to finance state farms and industrial enterprises that
employed large numbers of people and served as the backbone
of the socialist economic mode. Banks now show stronger
growth in deposits and capital in many countries in Central
and Eastern Europe and the Baltics, suggesting that these
countries have put into place structures that have helped to
restore confidence in banking systems among creditors,
investors, and the public. Recommended strategies are that
Governments need to design strategies to reduce state
banking in order to help create a stable banking
environment. Governments should take measures to improve the
business environment as part of a broad overall strategy to
strengthen the financial system and end state ownership of
banks. Such measures include providing support to improve
corporate governance, reform judicial systems, build
registries of collateral, reinforce creditors' rights
and contract enforcement, modernize accounting and auditing
practices, reduce administrative obstacles to business
registration, and modernize bankruptcy laws. |
| format |
Publications & Research :: Publication |
| author |
Sherif, Khaled Borish, Michael Gross, Alexandra |
| author_facet |
Sherif, Khaled Borish, Michael Gross, Alexandra |
| author_sort |
Sherif, Khaled |
| title |
State-owned Banks in the Transition : Origins, Evolution, and Policy Responses |
| title_short |
State-owned Banks in the Transition : Origins, Evolution, and Policy Responses |
| title_full |
State-owned Banks in the Transition : Origins, Evolution, and Policy Responses |
| title_fullStr |
State-owned Banks in the Transition : Origins, Evolution, and Policy Responses |
| title_full_unstemmed |
State-owned Banks in the Transition : Origins, Evolution, and Policy Responses |
| title_sort |
state-owned banks in the transition : origins, evolution, and policy responses |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/01/6301203/state-owned-banks-transition-origins-evolution-policy-responses http://hdl.handle.net/10986/14851 |
| _version_ |
1764426192376561664 |