Financial system development in transition economies

This paper provides an overview of the major issues with respect to financi al system development in transition economies, which were discussed at a co nference in Groningen, the Netherlands, December 1997. After a brief remark on the role of financial system design during economic transition, the pap er focuses on the role of stock markets in the process of financial interme diation with emphasis on the role of regulations in these markets, the role of deposit insurance to improve bank system stability, and the importance of an independent central bank, measurement issues relating to central bank independence and its impact on inflation and growth. (C) 2000 Elsevier Sci ence B.V. All rights reserved. JEL classification: G20; G28; G33; E58; P34.