Financial Sector Development in Transition Economies: Lessons from the First Decade

The Effect of Bank Concentration on Entrepreneurship in Central and Eastern European Transition Countries

“…Initial Share of Industry is negative, new …rms are less likely to enter in crowded industries, although not statistically di¤erent from zero. Financial Development has positive and signi…cant e¤ects, underlying that well developed …nancial markets boost the creation of new …rms 9 . Government E¤ectiveness has a positive and signi…cant impact, suggesting that high quality governments stimulate entrepreneurship.…”

Foreign Direct Investment in the Financial Sector: The Engine of Growth for Central and Eastern Europe?

“…Further spillovers on the infrastructure including regulation, legislation, or supervision are also possible (Bonin & Wachtel 2002). As foreign banks enter emerging markets, the introduction of new types of products or services is faster and innovation can even be accelerated via FSFDI (Wachtel 2001).…”

“…This creates the need for supervisors to adapt the legal environment to these developments. If regulations for new services are not in place or are not accurately and fast enough adapted, abuse will occur, which will harm the financial sector and the whole economy (Bonin & Wachtel 2002). Foreign owned banks might even tend to introduce new products to evade existing legislation, particularly in the case of weak financial systems (Goldberg 2004, 14).…”

Investigating bank efficiency in transition economies: A window-based weight assurance region approach

“…This attitude was supported by weaknesses in the legal prudential system. In this context, several of these new commercial banks, in general small in size, were forced to exit the market or to merge with other banks (Bonin and Wachtel, 2002 (Matousek and Sarantis, 2009). In addition to the growth of foreign investment, reduction of import barriers and development of a tax policy, also the globalization was an important growth factor of CEE economies from 1990 to 2009 (Gurgul and Lach, 2014 (Lo and Rogoff, 2015) in all the areas (EBRD, 2015).…”