Politická ekonomie
Politická ekonomie
Prague Economic Papers
University of Economics, Prague

Prague Economic Papers Vol. 12 No. 2

Czech banking in comparative perspective

DOI: https://doi.org/10.18267/j.pep.210

Full text

Martin Myant

Banks played a central and, at times, controversial, role in the post-1989 transformation of the Czech economy. This article is trying to assess that role by setting it in a historical and comparative context. Economic historians have specified two broad models of banking behaviour, although the differences can be exaggerated. Transition economies show some common characteristics, but past history gave Czech banks a particularly important role and policy makers pursued a conception under which they would finance rapid economic transformation, partly following a model from the past. With varying degrees of willingness, established banks took on this role, undermining their own financial solidity. As the Czech road ran into difficulties, so a different conception of banks' development was adopted, closer to policies more familiar across Central and Eastern Europe.

Keywords: banking history, banks, Czech economy, transition

JEL Classification: G21, G28, N20, P30