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The Role of Financial Institutions in the Transition to a Market Economy
Author:
Mr. Michael G. Spencer null

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Mr. H. J. Blommestein null

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Series:
IMF Working Papers
Volume/Issue:
Volume 1993: Issue 075
Language:
English
Publication Date:
01 Oct 1993
DOI:
https://doi.org/10.5089/9781451849653.001
ISBN:
9781451849653
ISSN:
1018-5941
Pages:
50
Keywords:
WP; investment funds; secondary market; commercial bank; central bank; banking system; capital base; savings bank; state enterprise; public offering; risk capital; capital structure; Stock markets; Commercial banks; Securities markets; Securities; Stocks; Eastern Europe; Central and Eastern Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Financial institutions intermediate between savers and investors and contribute to corporate governance. Equity and bond markets in the former centrally planned economies are not yet in a position adequately to provide these services. It is not yet clear that investment funds will provide the necessary financing and corporate management. Therefore the first priority for financial sector reforms must be to establish a healthy commercial banking sector. Banks are the most promising source of financing, provide payment services which are crucial to both the real and financial sectors and, by monitoring the use of loaned funds, will be the primary source of corporate governance during the transformation to a market economy.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund