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Development and efficiency of the banking sector in a transitional economy: Hungarian experience

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  • Hasan, Iftekhar
  • Marton, Katherin

Abstract

The paper analyzes the experiences and developments of Hungarian banking sector during the transitional process from a centralized economy to a market-oriented system.The paper identifies that early reorganization initiatives, flexible approaches to privatization, and liberal policies towards foreign banks involvement with the domestic institutions helped to build a relatively strong and increasingly efficient banking system.Banks with higher foreign bank ownership involvement were associated with lower inefficiency.
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  • Hasan, Iftekhar & Marton, Katherin, 2003. "Development and efficiency of the banking sector in a transitional economy: Hungarian experience," Journal of Banking & Finance, Elsevier, vol. 27(12), pages 2249-2271, December.
    • Handle: RePEc:eee:jbfina:v:27:y:2003:i:12:p:2249-2271
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