The analysis in this book reflects various aspects of financial sector transformation in selected Central European countries that are expected to join the EU in 2004. The authors are Central European financial experts who provide, among other things, a detailed overview of the following main topics: Banking Regulation and Supervision; Concentration and Efficiency of the Banking Sectors; Financial (banking) crises in selected Central European countries; and Monetary and Exchange Rate Development. The results of the research done by these authors reflect an interesting fact: that there exist important differences in the financial sector development even in the relatively homogeneous group of selected Central European countries, namely the Czech Republic, Poland, Slovakia and Hungary.

Detailed insights of the financial sector transformation

List of Tables List of Figures List of Abbreviations Acknowledgements Notes on the Contributors PART 1: THE FINANCIAL AND BANKING SECTORS IN TRANSITION COUNTRIES L.Kulhánek, S.Poloucek & D.Stavárek Financial sectors and intermediation in transition countries Comparison of financial sector structures Development and restructuring of banking sectors in the CEC Conclusion PART 2: THE CZECH BANKING SYSTEM IN THE 1990S: REGULATION AND SUPERVISION ; R.Matoušek The role and place of banking regulation and supervision Banking regulation and supervision - legislative framework Entry into and exit from the banking sector Deposit insurance scheme The institutional framework of supervision and regulation Conclusion PART 3: CONCENTRATION OF BANKING SECTORS ; S.Poloucek Concentration and economic theory The concept of measurement of concentration Concentration in the banking sectors of the Czech Republic, Poland and Slovakia Conclusion PART 4: EFFICIENCY AND PROFITABILITY IN THE BANKING SECTOR ; D.Stavárek and S.Poloucek The theoretical framework of efficiency Cross-country analysis of relative efficiency Privatization and banking sector profitability Risk and profitability of banks in CEC Relationship between efficiency and profitability Conclusion Appendix PART 5: COSTS OF MACROECONOMIC INSTABILITY IN ACCESSION COUNTRIES ; J.Frait, L.Komárek and M.Melecký Overview of features of the transition process in the ACC Facts on financial instability An empirical analysis of potential costs associated with macroeconomic instability Conclusion Appendix PART 6: EXCHANGE RATE AND MONETARY DEVELOPMENTS IN ACCESSION COUNTRIES ; J.Frait and L.Komárek Overview of discussions on the introduction of the euro Nominal and real convergence Exchange rate developments in six accession countries Inflation targets and price-level convergence Exchange rate regimes and the speed of euro adoption Exchange rate strategies of accession countries Conclusion Index