Reforms of the banking sector in Poland, 1989-1995

Abstract

The Polish Socialist Central Planning System was abolished in 1989 to be replaced with a Capitalist Market System. In 1993 Poland embarked upon a comprehensive restructuring programme, which combined restructuring of formerly state owned banks with that of their most prominent clients, state owned enterprises. In terms of its objectives of transferring capital from inefficient uses to more efficient uses, the programme seems to have been quite successful. The standard according to which progress is measured are much too high, however. Furthermore, the objectives of the programme did not take into consideration social complications such as increased unemployment resulting from restructuring of banks and enterprises