Walter, Norbert --- "Banking in South-East Europe: status quo and the way forward" [2005] ELECD 398; in Liebscher, Klaus; Christl, Josef; Mooslechner, Peter; Ritzberger-Grünwald, Doris (eds), "European Economic Integration and South-East Europe" (Edward Elgar Publishing, 2005)

Book Title: European Economic Integration and South-East Europe

Editor(s): Liebscher, Klaus; Christl, Josef; Mooslechner, Peter; Ritzberger-Grünwald, Doris

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845425173

Section: Chapter 23

Section Title: Banking in South-East Europe: status quo and the way forward

Author(s): Walter, Norbert

Number of pages: 14

Extract:

23. Banking in South-East Europe:
status quo and the way forward
Norbert Walter

1. BANKING IN SOUTH-EAST EUROPE (SEE)

The banking sectors of the South-East European countries have made
remarkable progress in the last couple of years. However, they still have
quite a long way to go to match their counterparts in the euro area in terms
of efficiency.
To start off, I will sketch some important lines of development. It is
useful at the outset to compare the banking sector in SEE with that in the
rest of Europe. Some tables will show in which aspects SEE has closed the
gap with former EU countries and in which fields reforms are required.
After the description of the banking sector, I will argue why it is impor-
tant for an economy to have sound financial markets. For the transition
economies in SEE, especially, it is very important to move forward in
creating a mature banking sector to nurture the process toward economic
prosperity.
Before closing with an outlook for the banking sector in SEE, I will
describe Romania in somewhat greater detail as a good example of a
banking sector evolving amid the changes from a centrally planned
economy to a market economy. I am sure that the fast and substantive
changes in the banking sector and in financial market regulation, not only
in Romania but in all of SEE, will continue in the next few years.


2. DESCRIPTION OF THE BANKING SECTOR
IN SOUTH-EAST EUROPE
...