Title: The role of banking reform policy in transition economies: delayed reforms for the case of Serbia

Authors: Aristidis Bitzenis, Aleksandra Misic, John Marangos, Andreas Andronikidis

Addresses: University of Macedonia, 156 Egnatia Street, 540 06 Thessaloniki, Greece. ' D.O.O. Europetrol, Partizanski put 11/8, 17500 Vranje, Serbia. ' University of Crete, Gallos University Campus, 74100 Rethymno, Greece. ' University of Macedonia, 156 Egnatia Street, 540 06 Thessaloniki, Greece

Abstract: While Serbia had initiated the establishment of the two-tier banking system earlier than most of the South East European (SEE) countries (in 1965), the banking reform actually began later than these countries (after 1999). The main reasons to account for that were: 1) very adverse initial conditions of the country|s economy; 2) dramatic economic decline; 3) disguised and mixed transition paths that have been followed, imposition of sanctions, severe regional instability, mismanagement and corruption. However, just six years after the implementation of reform, the overall functioning of the banking sector in Serbia in 2005 has witnessed a substantial improvement.

Keywords: Serbia; banking systems; financial sector; financial intermediaries; banks; transition economies; planned economy; emerging economies; banking reform; reform policy; delayed reforms.

DOI: 10.1504/IJEPEE.2009.027636

International Journal of Economic Policy in Emerging Economies, 2009 Vol.2 No.2, pp.175 - 198

Published online: 04 Aug 2009 *

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