The Banking System in Belarus: Transition Experience and an Analysis of Bank Efficiency

Having chosen a controversial path during its economic transition, Belarus achieved surprisingly impressive economic results, often referred to as the ¿Belarusian puzzle¿, while the banking sector has played a central role in the Belarusian economic model. The book fills the existing literature gap on the transition of the Belarusian banking system and provides an in-depth analysis of its evolution since the country achieved independence. It shows how the role assigned to the banking sector has determined its development, how the initially unskillful and erroneous reform policies transformed into a more thoughtful, long-term strategy, and how the banking landscape evolved in response. Next, an empirical study of bank efficiency in transition economies is conducted on the largest sample to date. The study compares the efficiency levels between countries, ownership and size groups of banks over time, as well as determines macroeconomic and bank-level factors having an influence on efficiency. The book should be relevant for academic circles, practitioners, and anyone else with an interest in the ongoing process of banking transition in formerly socialist countries.