Transitional Economies: Banking, Finance, Institutions

By Yelena Kalyuzhnova; Michael Taylor | Go to book overview
Save to active project


YelenaKalyuzhnova and MichaelTaylor

Four essentials for success in financial sector transition

It is already more than a decade since the former centrally planned economies began a major shift towards market-based financial systems. On the way they were faced with the challenges of adapting to a series of new developments, with new rules of the game as well as with the legacy of the previous period of central planning. It has affected all spheres of the national economies, but the burden of these factors is most clearly recognizable in the financial sector.

Before transition, socialist countries had centrally planned economic systems and undeveloped or non-existent capital markets. The move to a market-based economic system required transitional governments to introduce radical changes, including the development of a financial sector that was capable of allocating capital according to market incentives rather than the requirements of the central plan. The challenges of this transformation have been and remain enormous, and are highly dependent upon other sectors of the economy (for example macroeconomic conditions, industrial development and so on).

Without financial sector reform further macro- and microeconomic improvements and economic growth will be inhibited. A well-managed, well-regulated and prudently run financial sector can boost the effectiveness of the allocation of capital and hence the development of the real economy.

Throughout the book the authors have highlighted four essential key elements of a sound financial system for the transitional economies, namely: an effective institutional framework; an adequately functioning banking sector as the core of the financial system; the creation of a


Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this page

Cited page

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Transitional Economies: Banking, Finance, Institutions


Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 256

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?