A Re-evaluation of Banking Sector Reforms in Transition Economies: Intentions and Unintended Consequences

Citation

Ruziev K & Dow S (2015) A Re-evaluation of Banking Sector Reforms in Transition Economies: Intentions and Unintended Consequences. In: Ruziev K & Perdikis N (eds.) Development and Financial Reform in Emerging Economies. SCEME Studies in Economic Methodology, 2. London: Pickering & Chatto, pp. 81-98. http://www.pickeringchatto.com/titles/1732-9781848934580-development-and-financial-reform-in-emerging-economies

Abstract
First paragraph: Transformation of the centrally planned economies (CPEs) into market economies implied embarking on a wide range of reforms in every aspect of economic life. In particular, since money and banks served different purposes under central planning compared to a market economy, these institutions too required fundamental restructuring. When transforming their banking sectors most transition economies (TEs) followed policy recommendations, known in the literature as the ‘Washington consensus on banking transition', associated mainly with the International Monetary Fund (IMF) and the World Bank (Fries and Taci, 2001, p. 173).