ПРИВАТИЗАЦИЈА БАНАКА У ЗЕМЉАМА ЦЕНТРАЛНЕ ЕВРОПЕ
PRIVATIZATION OF BANKS IN CENTRAL EUROPE

Summary/Abstract: This paper analyses advantages and deficiencies of some of the bank privatization methods; on the basis of experiences of those countries which achieved biggest progress in establishing market economies. Experience of those countries shows that method of mass voucher privatization is not ap¬propriate for establishing efficient banking. On the other hand; possibilities of privatization by using method of initial public offering is very limited because of the lack of institutional preconditions and lack of domestic capital. Experience of Central Europe shows that development of efficient banking sector is impossible without foreign strategic investors. Selling a bank to strategic foreign investors (case of Hungary) enables relatively rapid and radical bank restructuring; accompanied by know-how and skill transfer. However; foreign capital engagement in banking sector opens numerous questions which points out to the necessity of a more cautious enforcement of this privatization method.

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