Financial reform and the efficiency of intermediation: banking performance in Hungary

A. Geske Dijkstra

Research output: Working paperAcademic

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Abstract

This paper attempts to develop a conceptual framework in order to assess the efficiency of financial intermediation during a process of reform of the financial sector. The desired outcomes of reform, operational efficiency, allocative efficiency, dynamic efficiency and stability, are shown to depend on the fulfillment of certain preconditions and on intervening variables and factors. In the second part of the paper this framework is applied to Hungary. It is concluded that the way financial liberalization has proceeded in Hungary has led to two main problems: a structural competitive loss for the state banks and a lack of long-term finance available for private enterprises.
Original languageEnglish
Place of PublicationDen Haag
PublisherInternational Institute of Social Studies (ISS)
Number of pages36
Publication statusPublished - Nov 1996
Externally publishedYes

Publication series

SeriesISS working papers. General series
Number231
ISSN0921-0210

Series

  • ISS Working Paper-General Series

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