IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/882.html
   My bibliography  Save this paper

Issues in reforming financial systems in Eastern Europe : the case of Bulgaria

Author

Listed:
  • Thorne,Alfredo Eduardo

Abstract

The author uses the situation in Bulgaria to illustrate the financial system most Eastern European countries have inherited. Reforming these financial systems is especially difficult because of the problems inherited from a centrally planned economy (CPE). The financial system in a CPE is completely different from a financial system in a market economy. It is only a slight exaggeration to say that reforming the financial systems in these countries means creating a financial system from scratch. The author illustrates the types of problems Eastern European countries face in reforming their financial systems. He argues that these countries can stimulate the supply response by giving the emerging private sector more access to credit and by increasing the savings deposited in the financial system. He argues that the authorities should: (i) link reform of the financial sector to the privatization of banks and enterprises, (ii) quickly privatize a group of banks, (iii) encourage privatized banks to lend exclusively to the emerging private sector, and (iv) turn the of the banks into investment banks and make them participate in the restructuring and privatization of state-owned enterprises.

Suggested Citation

  • Thorne,Alfredo Eduardo, 1992. "Issues in reforming financial systems in Eastern Europe : the case of Bulgaria," Policy Research Working Paper Series 882, The World Bank.
    • Handle: RePEc:wbk:wbrwps:882
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/343721468769504586/pdf/multi-page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hinds, Manuel, 1988. "Economic effects of financial crises," Policy Research Working Paper Series 104, The World Bank.
    2. Feltenstein, Andrew & Lebow, David & van Wijnbergen, Sweder, 1990. "Savings, Commodity Market Rationing, and the Real Rate of Interest in China," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 22(2), pages 234-252, May.
    3. Edwards, Jeremy, 1991. "Banks, Finance and Investment in West Germany since 1970," CEPR Discussion Papers 497, C.E.P.R. Discussion Papers.
    4. Corbett, Jenny, 1987. "International Perspectives on Financing: Evidence from Japan," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 3(4), pages 30-55, Winter.
    5. Calvo, Guillermo A & Coricelli, Fabrizio, 1992. "Stagflationary Effects of Stabilization Programs in Reforming Socialist Countries: Enterprise-Side and Household-Side Factors," The World Bank Economic Review, World Bank, vol. 6(1), pages 71-90, January.
    6. Mayer, Colin, 1987. "The Assessment: Financial Systems and Corporate Investment," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 3(4), pages 1-1, Winter.
    7. Colin Mayer, 1990. "Financial Systems, Corporate Finance, and Economic Development," NBER Chapters, in: Asymmetric Information, Corporate Finance, and Investment, pages 307-332, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ewa Karwowski & Mimoza Shabani & Engelbert Stockhammer, 2016. "Financialisation: Dimensions and determinants. A cross-country study," Working Papers PKWP1619, Post Keynesian Economics Society (PKES).
    2. A. Galetovic, 1996. "Finance and growth: a synthesis and interpretation of the evidence," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 49(196), pages 59-82.
    3. Bronwyn H. Hall, 1991. "Corporate Restructuring and Investment Horizons," NBER Working Papers 3794, National Bureau of Economic Research, Inc.
    4. A. Galetovic, 1996. "Finance and growth: a synthesis and interpretation of the evidence," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 49(196), pages 59-82.
    5. Alexander Galetovic, 1994. "Finance and growth: a synthesis and interpretation of the evidence," International Finance Discussion Papers 477, Board of Governors of the Federal Reserve System (U.S.).
    6. Anderson, Christopher W. & K. Makhija, Anil, 1999. "Deregulation, disintermediation, and agency costs of debt: evidence from Japan," Journal of Financial Economics, Elsevier, vol. 51(2), pages 309-339, February.
    7. Nicola Cetorelli & Michele Gambera, 2001. "Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data," Journal of Finance, American Finance Association, vol. 56(2), pages 617-648, April.
    8. Katharina Pistor & Martin Raiser & Stanislaw Gelfer, 2000. "Law and Finance in Transition Economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 325-368, July.
    9. Chen, Zhiyuan & Li, Yong & Zhang, Jie, 2016. "The bank–firm relationship: Helping or grabbing?," International Review of Economics & Finance, Elsevier, vol. 42(C), pages 385-403.
    10. Schmieding, Holger & Buch, Claudia, 1992. "Better banks for Eastern Europe," Kiel Discussion Papers 197, Kiel Institute for the World Economy (IfW Kiel).
    11. Kazimierz Stanczak, 1994. "Endogenous Market Power and Adjustment under Fixed Exchange Rates: Interpreting the Polish Experience 1990-1991," UCLA Economics Working Papers 714, UCLA Department of Economics.
    12. Patrick M. McGuire, 2003. "Bank ties and bond market access : evidence on investment-cash flow sensitivity in Japan," Proceedings 859, Federal Reserve Bank of Chicago.
    13. Bennett, John & Dixon, Huw David, 1995. "Macroeconomic equilibrium and reform in a transitional economy," European Economic Review, Elsevier, vol. 39(8), pages 1465-1485, October.
    14. Sanjiva Prasad & Christopher J. Green & Victor Murinde, 2005. "Company Financial Structure: A Survey and Implications for Developing Economies," Chapters, in: Christopher J. Green & Colin Kirkpatrick & Victor Murinde (ed.), Finance and Development, chapter 12, Edward Elgar Publishing.
    15. Cai, Jun & Cheung, Yan-Leung & Goyal, Vidhan K., 1999. "Bank monitoring and the maturity structure of Japanese corporate debt issues," Pacific-Basin Finance Journal, Elsevier, vol. 7(3-4), pages 229-249, August.
    16. Żak Katarzyna, 2017. "Physical Investment Financing: The Cases of Poland and Latvia," Economics and Culture, Sciendo, vol. 14(1), pages 76-85, June.
    17. Kenichiro Suzuki & David Cobham, 2005. "Recent trends in the sources of finance for Japanese firms: has Japan become a 'high internal finance' country?," Discussion Paper Series, School of Economics and Finance 200501, School of Economics and Finance, University of St Andrews.
    18. Joseph E. Stiglitz & Bruce Greenwald, 1992. "Towards a Reformulation of Monetary Theory: Competitive Banking," NBER Working Papers 4117, National Bureau of Economic Research, Inc.
    19. Ramirez, Andres & Kwok, Chuck C.Y., 2010. "Settling the debate on multinational capital structure using the CEPR measure," Journal of Multinational Financial Management, Elsevier, vol. 20(4-5), pages 251-271, December.
    20. David T. Llewellyn, 1999. "The New Economics of Banking," SUERF Studies, SUERF - The European Money and Finance Forum, number 5 edited by Morten Balling, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:882. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.