Transactional Structures of Bank Privatizations in Central Europe and Russia
Journal of Comparative Economics, Vol. 25 No. 1, 1997
Posted: 16 May 1998
In pursuing bank privatization the governments in Central Europe and Russia faced a common set of policy issues including how to break up the monobank system deal with troubled loans, transfer equity in the state banks to the private sector, and attract financial and human capital to the banks. For each bank undergoing privatization, the government's approach to such issues determines its "transaction structure." In this article we develop this conceptual framework and assess the findings from three studies of major commercial banks undergoing privatization. The varied transactional structures used in these privatizations appear to have had significant effects on each bank's microstructure. In addition the transactional structures are shown to influence bank strategy and post-privatization performance.
JEL Classification: G21, L21, P34
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