Cover IMF Working Papers
Financial Sector Reform and Banking Crises in the Baltic Countries
Author: International Monetary Fund
Series:
IMF Working Papers
Volume/Issue:
Volume 1996: Issue 134
Language:
English
Publication Date:
01 Dec 1996
DOI:
https://doi.org/10.5089/9781451855555.001
ISBN:
9781451855555
ISSN:
1018-5941
Pages:
52
Keywords:
WP; central bank; liquidity problem; savings bank; treasury bill; interbank market; banking crisis; state enterprise; market economy; money multiplier; foreign exchange; capital base; Commercial banks; Credit; Banking crises; Loans; Foreign banks; Baltics
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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 sector reform in the Baltic countries is reviewed in light of the banking crises that emerged during the reform period. It is argued that the crises had their roots in the structural deficiencies specific to planned economies and the financial environment that developed before and after these countries regained their independence, thus rendering them largely inevitable. Because of the low level of financial intermediation, however, even the failure of large banks had limited systemic effects and a minor negative impact on output and incomes. The crises slowed down the financial reform process, but brought about a desired consolidation of the banking sector.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund