Buch, Englisch, Band 13, 397 Seiten
Buch, Englisch, Band 13, 397 Seiten
Reihe: Studienreihe Volkswirtschaften der Welt
ISBN: 978-3-86064-981-7
Verlag: Kovac
The institutional reform encountered serious obstacles, and it turned out that it was the third task, the transformation of the financial system, which was confronted by the greatest challenge. The explosion of bad debts called into question the banks' ability to pursue the task of efficient credit allocation. As a nation-wide crisis it undermined the stability of the whole banking sector. Its collapse not only would have resulted in the destruction of the credit allocation function for the economy, but it might have buried all chances for a successful transition. That is why overcoming the bad debt crisis can be regarded as a key factor in the further economic development of all transition countries.
This study focuses on how the Polish horities have addressed the problem. It explores whether the government and the Central Bank have managed to outline an implement a reform programme both comprehensive and capable of combating all sources of potential moral hazard in the banking system.