Abstract
Banks used to be the financial backbone for the development of modern capitalism and they continue to be one of the major economic pillars for every society based on large-scale division of labour and the use of money as accounting unit, means of payments, credit and store of value. Banks are the basis of the universal payment system and serve as infrastructure and medium for social interaction and cohesion; they provide credit which is at the centre of capitalist expansion. Instability of the banking system can lead to financial crises which impair the functioning of the whole economy. Therefore the stability of the banking sector is a public good. Lastly, the control over the banking system gives power to influence the direction of economic and social development. All this explains the relatively large role of public ownership and regulation in the banking sector throughout the world in the years preceding the wave of liberalisation and privatisation after 1980.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Andrews, A. M. (2005) State-Owned Banks, Stability, Privatisation and Growth: Practical Policy Decisions in a World Without Empirical Proof (IMF Working Paper WP/05/10, January).
Barisitz, S. (2008) Banking in Central and Eastern Europe 1980–2006 (Milton Park and New York: Routledge).
Bayliss, K. (2000) The World Bank and Privatisation: A Flawed Development Tool (London: PSIRU, University of Greenwich, November).
Boehmer, E., Nash, R. C. and Netter, J. M. (2004) “Bank Privatisation in Developing and Developed Countries: Cross-Sectional Evidence on the Impact of Economic and Political Factors”, Journal of Banking & Finance, Vol. 29, Nos 8–9, August-September 2005, pp. 1981–2013.
Clarke, G. R. G., Cull, R. and Shirley, M. (2005) “Bank Privatization in Developing Countries: A Summary of Lessons and Findings”, Journal of Banking & Finance, Vol. 29, Nos 8–9, August-September, pp. 1905–1930.
De la Motte, R. (2007) Database on Public Banks in Europe (Manuscript for PRESOM).
European Central Bank (2006) Report on EU Banking Structure (Frankfurt: ECB).
Frangakis, M. (2007) Privatisation in the EU — An Overview (Paper Presented for PRESOM, January).
Grahl, J. (1997) After Maastricht — A Guide to European Monetary Union (London: Lawrence & Wishart).
James, H. (1993) “General Trends: A Search for Stability in Uncertain Conditions”, in Pohl, H., 1993, pp. 354–356.
Kindleberger, Ch. P. (1984) A Financial History of Western Europe (London/Sydney/Boston: George Allen & Unwin).
La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2002) “Government Ownership Ownership of Banks”, The Journal of Finance, Vol. 57, No. 1, pp. 265–301.
Levine, R. (2003) The Corporate Governance of Banks (Global Corporate Governance Forum, Discussion Paper No. 3, July).
Megginson, W. L. (2005) “The Economics of Bank Privatisation”, Journal of Banking & Finance, Vol. 29, Nos 8–9, August–September 2005, pp. 1931–1980.
Mencinger, J. (2003) “Does FDI Always Enhance Economic Growth?” Kyklos, Vol. 56, pp. 491–508.
Micco, A., Panizza, U. and Yanez, M. (2007) “Bank Ownership and Performance. Does Politics Matter?”, Journal of Banking and Finance, Vol. 31, No. 1, January, pp. 219–241.
Pohl, H. (ed.) (1993) Europäische Bankgeschichte (Frankfurt: Fritz Knapp Verlag).
Privatization Barometer Database, www.privatizationbarometer.net/database.php (accessed 15 December 2008)
Russell, E. (2008) New Deal Banking Reforms and Keynesian Welfare State Capitalism (New York/London: Routledge).
Stiglitz, J. E. (1999) Whither Reform? (Keynote Address, Annual World Bank Conference on Development Economics, Washington DC: World Bank).
UniCredit Group (2007) Banking in CEE and the Role of International Players (UniCredit Group, New Europe Research Network, July).
UniCredit Group (2008) CEE — Still the Right Bet (UniCredit Group, New Europe Research Network, July).
Vesala, J. (1995) “Banking Industry Performance in Europe: Trends and Issues” in OECD (ed.), The New Financial Landscape: Forces Shaping the Revolution in Banking, Risk Management and Capital Markets (Paris: OECD Documents), pp. 97–165.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2009 Marica Frangakis, Jörg Huffschmid and Joze Mencinger
About this chapter
Cite this chapter
Frangakis, M., Huffschmid, J., Mencinger, J. (2009). Bank Liberalisation and Privatisation. In: Frangakis, M., Hermann, C., Huffschmid, J., Lóránt, K. (eds) Privatisation against the European Social Model. Palgrave Macmillan, London. https://doi.org/10.1057/9780230250680_12
Download citation
DOI: https://doi.org/10.1057/9780230250680_12
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-30898-9
Online ISBN: 978-0-230-25068-0
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)