Estonia's banking system consists of the Bank of Estonia and the network
of commercial banks, of which each year is steadily decreasing, both by unions
and mergers, as well as deprivation of licenses for their activities.
In 1998, the merger of the four
largest banks: Hansabank and Sberbank Ühispank and Tallinn bank. United as
Foreksbank and Investment Bank. Bankrupt Maabank (Land Bank). Thus, the number
of commercial banks in Estonia by the end of the year was 7. In general,
according to experts - is improving the process leading to the strengthening of
the banking system.
Main Bank of Estonia has developed and implemented a number of measures
to tighten requirements for reliability and streamline the banking system (capital
adequacy requirements to improve liquidity, the transition to a more
conservative policy). As a result, there has been some slowdown in credit
growth and higher interest rates on loans and deposits. Overall, the banking
system is stable with sufficient reliability.
In the late 90s, the Law on the protection of deposits, related
primarily to small and medium investors. Some of the fundamental provisions of
the Act have been early adopted by the Government and the Bank of Estonia in
the aftermath of the bankruptcy Maabanka this summer. In the transition to a
single European currency "Euro" at the Bank of Estonia is working on
possible scenarios entering the Estonian kroon in a single currency system. At
the same time, during the stock market crisis Estonian Kroon confirmed its
stability.
Foreign study on the evaluation of foreign direct investors Estonian
banking sector based on data for 1996-1997. Demonstrate their credibility and
very favorably on its performance in general, compared with other factors conducive
to investment, and in the general use of the services of the Estonian
commercial banks (taking deposits, transactions iostrannoy currency payments
and others.
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