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Large bank privatization and economic transformation in the czech republic in the nineties

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  • Donald G. Simonson

Abstract

This paper examines the two crucial factors in Czech banking policy that explain why Czech banks were not an effective support for economic restructuring in the nineties. These factors are: the subsistence of unrestructured, non-viable firms that undermined development of banks' debt monitoring role and stunted the development of bankruptcy and commercial laws needed to support credit creation and, delays in privatizing the large bank hegemony that rendered the banks themselves unrestructured, undercapitalized and poorly competitive with foreign institutions.

Suggested Citation

  • Donald G. Simonson, 2000. "Large bank privatization and economic transformation in the czech republic in the nineties," Prague Economic Papers, Prague University of Economics and Business, vol. 2000(3).
    • Handle: RePEc:prg:jnlpep:v:2000:y:2000:i:3:id:81
    DOI: 10.18267/j.pep.81
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    Cited by:

    1. Žídek Libor, 2016. "Economic Transformation in Slovenia: From a Model Example to the Default Edge," Review of Economic Perspectives, Sciendo, vol. 16(3), pages 159-186, September.

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