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Pavlova Rossitsa Rangelova (Bulgarian Academy of Sciences - Economic Research Institute, Sofia, Bulgaria), Sariiski Grigor (Bulgarian Academy of Sciences - Economic Research Institute, Sofia, Bulgaria)
Negative Impacts of the Neo-liberal Policies on the Banking Sector in Bulgaria
Contemporary Economics, 2015, vol. 9, nr 1, s. 61-76, tab., bibliogr. 33 poz.
Słowa kluczowe
Sektor bankowy, Polityka gospodarcza, System bankowy w gospodarce rynkowej, Studium przypadku
Banking sector, Economic policy, Banking system in market economy, Case study
From the beginning of the 1970s until the last global financial and economic crisis in 2008-2009, neo-liberal ideas guided economic policy development. It is worth noting that the Central and Eastern European countries transformed their economies from centrally planned to а market type at the peak of the liberal policies. Bulgaria offers a particularly interesting example because the country encountered a very difficult transition from one extreme of an economic system organization to another. The paper considers the reforms in the Bulgarian banking sector during the transition period from a centrally planned to a market type economy (from 1989 onward) through the implementation of neo-liberal policies. The development of the banking sector and its transformation is analyzed throughout the two main periods: before and after the transition. The latter is divided into two sub-periods (phases) beginning with the early 1990s, followed by the financial and bank crisis in the country, the introduction of a currency board regime in 1997, and stabilization, and ending with the global crisis in 2008-2009. This article summarizes that during the transition period, a modern banking system was established to accumulate profit rather than to promote economic growth. Following a chronological order, the negative effects of the liberalization of the Bulgarian banking sector are specified: the exportation of ownership (and control) upon banking system assets, unfair asset redistribution, the emergence of the local oligarchy, the weak protection of the taxpayers and others.(original abstract)
Pełny tekst
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