ORGANIZATIONAL AND SECTORAL CHANGES IN TRANSITION BANKING: ESTONIAN EXPERIENCE
Kari Liuhto1, Olga Luštšik2, Mart Sõrg2, and Janek Uiboupin1
1Turku School of Economics, 2University of Tartu
Abstract. Our study examines organizational and
sectoral developments in Estonian banking
sector. It can be concluded
the unstable economic and legal environment during the transition period,
banking in Estonia has been much more profitable than in many developed
countries. But at the same time effectiveness of
banking in a transition economy is volatile and bank
failures , is high.
The Estonian banking sector is clearly dominated by foreign banks that have
brought stability and modern banking techniques with them and increased the
competitiveness of the market. We also prove that new electronic risk channels al provide
to than traditional channels and explain banks
more cost saving the difference in the cost
structure what . is
Keywords: banking sector development, banking internationalization, electronic banking
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