THE TRANSITION TIMES OF THE BANKING SYSTEM IN SOUTH-EASTERN EUROPE – FROM SYSTEMIC COLLAPSE TO STABILISATION

Abstract

The paper analyses the commercial banking sector's development in southeastern Europe during the transition period. The transition of the banking sector evolved - or is still evolving - parallel with the general economic transition.
However, due to its complexity and the widespread factors that influence its
activity, its development was a slow and gradual process with occasional systemic meltdowns. The paper proves that despite the different legacies, initial
condition, applied economic policies, and historical events, the banking sector's structure became similar in all country cases by the end of the transition
period. This similarity could be explained by the mutual challenges and the
financial globalisation.