BANK PRIVATIZATION IN POLAND - THE CASE OF BANK-SLASKI

The privatization of Bank Slaski, one of nine regional commercial bank s in Poland, illustrates the benefits of attracting a strategic foreig n investor. Internationale Nederlanden Group has contributed substanti ally to the upgrading of Bank Slaski's credit lending practices, infor mation systems, product and service offerings, and brokerage house ope rations. However, the prolonged ownership of a core-investor stake by the Polish Treasury slowed progress toward improving performance and c reated complications for governance. Furthermore, the Polish governmen t's reaction to this privatization and its subsequent preoccupation wi th precluding a strong presence of foreign banks retarded the developm ent of a dynamic and efficient banking sector in Poland. J. Comp. Econ om., August 1997, 25(1), pp. 31-61. University of Michigan Business Sc hool, Ann Arbor, Michigan 48109 and The William Davidson Institute at the University of Michigan Business School, Ann Arbor, Michigan 48109; and Wesleyan University, Middletown, Connecticut 06459 and The Willia m Davidson Institute at the University of Michigan Business School, An n Arbor, Michigan 48109. (C) 1997 Academic Press.