Study On Banking Crisis In Economic Transition Countries

At 1990's, with disorganization of planned economy and crisis of political & social, almost all transition countries have experienced banking crises or severe banking distress during the transition process, which had a severe impact on economy and society in transition countries.This paper analyses fundamental effect of institutional variance on formation of banking crises in transition countries, with viewpoint and method of CIS (Comparative Institutional Analysis). The author reveals the main effect of three kinds of institutional non-equilibrium, i.e. institution inertia, institution vacuum, institution distortion, on banking crises in transition countries. The author also analyses relations among three microcosmic main bodies, i.e. bank, enterprises, government, in the process of game, the behaviors of the game participators and the outcomes of game. Then, the author explains the forming mechanism of banking crisis in transition countries from macroscopic, microcosmic and different national viewpoints. So the author regards the banking crises in transition countries as a kind of financial crisis caused by institutional variance. So banking crises in transition countries is basically a kind of institutional crisis. According to real problem existed in Chinese banking industry, the author makes some suggestions for controlling management risk of bank and ensuring safeness of Chinese economy and finance.About the problem of institutional non-equilibrium, the author thinks with the viewpoint of institutional endogenesis of CIS that: first, institution inertia can be seen as follows: a) the problem of soft budget constraint had not resolved in beginning of transition period, such as Russia; b) financial corruption had been existed in beginning of transition period cumbering the transition process; c) microcosmic main bodies cannot adapt rapidly to new institutional environment, d) interior management institution and mechanism had not radically been resolved in beginning of transition period, making the problem of NPL be more severe than before, e) Wholely denial to original institution and neglect to risk accumulated in original institution made the concealed risk in banking system release entirely in beginning of transition. So...