Band Privatization in Transition Economies

Abstract

This paper offers a unified framework for assessing bank privatization that is based on the principles of modern economics, finance, accounting and banking, the validity of which is supported by extensive experience. This framework serves as a foundation for analyzing the cases. It accommodates the central reality that "each case is different" and that progress in bank privatization will be on a case-by-case basis, yet also develops common principles that bear on successful bank privatization. Thus, the framework allows analysts and policy makers to decompose any given bank privatization into case-specific fasctors and the general factors. The case-specific factors are those that are unique to the specific bank in question and that provide the context for applying the unified framework. The general factors are those issues and considerations that can be applied in a unified framework based on modern scientific finance and economics to virtually any case.