Abstracts » Economics

Bank privatization in post-communist Russia: the case of Zhilsotsbank

Article Abstract:

The privatization of Zhilsotsbank of Russia demonstrates that the process of privatization can contribute to the eradication of the government's role in the corporate governance of banks. Incumbent bank managers obtained control rights over new private banks following Zhilsotsbank's decentralized privatization. The swift eradication of government from direct ownership of numerous banks, combined with broad licensing rules, has enabled the Russian banking industry to be over 75% private. Mosbusinessbank, a big commercial bank formed from 26 Zhilsotsbank branches, is one of the most profitable banks the old state banking system has produced.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Banking Regulation, Banking law, Zhilsotsbank

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Transactional structures of bank privatizations in Central Europe and Russia

Article Abstract:

The various transactional structures employed in the privatization of three big banks, namely, Zhilsotsbank in Russia, Komercni Banka in the Czech Republic, and Bank Slaski in Poland, seem to have had marked influences on the microstructures of all three banks. Moreover, it seems that the transactional structures have affected the financial soundness of the banks, their business tactics and their performance following privatization. It was established that the creation of only one major commercial bank out of the monobank system is inclined to inhibit privatization.

Poland, Bank Slaski

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Privatization and performance of the Czech Republic's Komercni Banka

Article Abstract:

Komercni Banka of the Czech Republic failed to be completely privatized when the government decided to maintain majority ownership and control. Though favorable conditions surrounded Komercni Banka's privatization, the difficulty of bank privatization efforts and the power of political forces remain in Central Europe. Government ownership may hinder the progress of the franchise values of banks from good banking and generate classic ethical hazard difficulties.

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