Restructuring and Development of the Banking Sector in Poland - Lessons to Be Learnt by Less Advanced Transition Countries (original) (raw)

Banking reform in transition countries

The Journal of Policy Reform, 1998

Theinstitut ra O banks in trc nsition ecor> m,ern;s in Transition Countries irn-proves fcster vr,ien or parallel private Darikir ig system is al owed o emrn jre Stijn Claessens than it doe. wher-tne government tries -: irnply to reform exis 7ng state-owrd(i banks. Banking reror-m snould stress decentralized institutionrbuilding arnd penadties For weak bank-.

Bank Privatization in Poland: The Case of Bank Śla̧ski

Journal of Comparative Economics, 1997

The privatization of Bank Ślaski, one of nine regional commercial banks in Poland, illustrates the benefits of attracting a strategic foreign investor. Internationale Nederlanden Group has contributed substantially to the upgrading of Bank Ślaski's credit lending practices, information systems, product and service offerings, and brokerage house operations. However, the prolonged ownership of a core-investor stake by the Polish Treasury slowed progress toward improving performance and created complications for governance. Furthermore, the Polish government's reaction to this privatization and its subsequent preoccupation with precluding a strong presence of foreign banks retarded the development of a dynamic and efficient banking sector in Poland.

Restructuring of Banking: Concept, Justifications, Stages and Results

Mediterranean Journal of Social Sciences, 2014

Banks play an important role in the economic system , this fact of their responsibility for all deposits , on the one hand and managing means of payment other. They constitute one of the pillars of power and an aspect of economic competition globally. The bank was considered an administrative institution who enjoyed the protection of the public authorities, the performance parameter did not matter. A party of twenty-four years, the activity of banks experiencing financial liberalism and are subject to new regulations and banking laws. The essential goal is to reduce the influence of the central authority on the financial system to minimize the role of the monetary authority. This allowed the financial and banking system to develop in the light of changes in financial and banking variables and increasing competition. In this atmosphere and to track changes and to face the challenges from globalization and increased competition from banks and non-financial institutions, banks were essential to restructure their operations to position itself in the banking and financial markets. In this article we try to spread out the restructuring , its definitions, its mandatory and different methods of bank restructuring and the issues and the consequences resulting there from.

Can State-owned Banks Promote Enterprise Restructuring? Evidence from One Polish Bank's Experience

Post-Communist Economies, 2001

In this paper, we take a detailed look at one Polish bank's experiences with nancial sector reforms focusing on a bank-led enterprise-restructuring plan that linked directly bank privatization and recapitalization to bad-debt workouts. Based on personal interviews and original statistical data, we evaluate the performance of Bank Depozytowo-Kredytowy (BDK) in promoting nancial and operational restructuring of its clients. We found that BDK continued to provide soft lending to keep four old military-industrial companies a oat and actually increased its exposure to these companies during the program. The ve success stories among BDK's clients were companies that had external agents other than the bank promoting and monitoring their operational restructuring. From our case study of BDK, we conclude that, while banks may play a role in nancial restructuring of their clients, their ability to affect operational restructuring is quite limited. Moreover, stateowned banks are particularly vulnerable to incentive problems when dealing with large state-owned enterprises that may be too big or too political to fail. Enterprise Restructuring in Transition Economies Poland's approach to privatisation and enterprise restructuring is unique among transition economies. In consultation with the World Bank, the Polish government designed an integrated, bank-led enterprise restructuring plan that linked the nancial restructuring of enterprises through bad debt workouts to bank recapitalisation and privatisation. Promulgated in March 1993, the Act on Financial Restructuring of Enterprises and Banks was intended to supplement the court-based, Chapter 7-type bankruptcy and liquidation options under existing Polish privatisation law with a new nancial instrument for resolving bad debts, namely the bank conciliation procedure (BCP). In a BCP agreement, the lead bank acts as an agent for all creditors by