Late banking transitions: Comparing Uzbekistan to earlier reformers

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F23%3A10253325" target="_blank" >RIV/61989100:27510/23:10253325 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sciencedirect.com/science/article/pii/S2452292923000097?via%3Dihub" target="_blank" >https://www.sciencedirect.com/science/article/pii/S2452292923000097?via%3Dihub</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.wdp.2023.100493" target="_blank" >10.1016/j.wdp.2023.100493</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Late banking transitions: Comparing Uzbekistan to earlier reformers

Popis výsledku v původním jazyce

This paper compares the early experience of Uzbekistan with transitioning its banking system to market principles with the experience of former transition economies. To that effect, it uses novel data on Uzbekistan&apos;s banking sector, data on former transition economies, and evidence from the literature. We find that the 2017 financial liberalization triggered a larger credit boom than former transition countries experienced. The Covid-19 pandemic helped tame the boom and secure a soft landing. Good capitalization of the largest state banks serves as a backstop against a systemic banking crisis. However, structural reform gaps need to be closed for financial deepening to continue sustainably. The state banks enjoy privileged access to longer-term financing, larger economies of scale, and bailout capital injections that inhibit banking competition. The human capital in banking appears lower than what the former transition countries started with and could deter FDI into banking. The small private sector, lacking commercialization, and slow privatization of state enterprises-as well as the state enterprise-state bank nexus-are other factors inhibiting fair banking competition. Financial sector institutions such as risk-based supervision, accounting and auditing, bank resolution, and deposit insurance still fall behind good international practices. The broader governance of state banks is one political economy factor hindering faster transformation of the banking sector in Uzbekistan.

Název v anglickém jazyce

Late banking transitions: Comparing Uzbekistan to earlier reformers

Popis výsledku anglicky

This paper compares the early experience of Uzbekistan with transitioning its banking system to market principles with the experience of former transition economies. To that effect, it uses novel data on Uzbekistan&apos;s banking sector, data on former transition economies, and evidence from the literature. We find that the 2017 financial liberalization triggered a larger credit boom than former transition countries experienced. The Covid-19 pandemic helped tame the boom and secure a soft landing. Good capitalization of the largest state banks serves as a backstop against a systemic banking crisis. However, structural reform gaps need to be closed for financial deepening to continue sustainably. The state banks enjoy privileged access to longer-term financing, larger economies of scale, and bailout capital injections that inhibit banking competition. The human capital in banking appears lower than what the former transition countries started with and could deter FDI into banking. The small private sector, lacking commercialization, and slow privatization of state enterprises-as well as the state enterprise-state bank nexus-are other factors inhibiting fair banking competition. Financial sector institutions such as risk-based supervision, accounting and auditing, bank resolution, and deposit insurance still fall behind good international practices. The broader governance of state banks is one political economy factor hindering faster transformation of the banking sector in Uzbekistan.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

World Development Perspectives

ISSN

2452-2929

e-ISSN

—

Svazek periodika

30

Číslo periodika v rámci svazku

June

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

15

Strana od-do

100493

Kód UT WoS článku

000972622700001

EID výsledku v databázi Scopus

2-s2.0-85150215853