Wolf, Holger2012-03-192012-03-192011-10-01https://hdl.handle.net/10986/3597This paper surveys the debate on arms-length and relationship-based financial systems with a special focus on the Eastern Europe and Central Asia region. The paper argues that while the initial dominance of relationship-based systems in the region is consistent with the implications of the theoretical literature, the subsequent improvements in supporting institutions coupled with structural changes suggests a greater scope for arms-length elements going forward.CC BY 3.0 IGOACCESS TO EXTERNAL FINANCEACCOUNTINGACCOUNTING STANDARDSALTERNATIVE FUNDINGBANK POLICYBANK SECURITIESBANKING MARKETBANKING SYSTEMBANKRUPTCYBONDBOND MARKETSBORROWINGBUSINESS PRACTICESCAPITAL MARKETSCENTRAL BANKINGCO-OPERATIVE BANKSCOMMON LAWCONSOLIDATIONCONTRACT DISPUTESCONTRACT ENFORCEMENTCORPORATE DEBTCORPORATE DEBT MARKETSCORPORATE GOVERNANCECORPORATE GOVERNANCE STANDARDSCOUNTRY COMPARISONSCREDIT GROWTHDEPOSITSDISCLOSURE REQUIREMENTSDISCLOSURE STANDARDSDISPUTE RESOLUTIONDOMESTIC BANKSDOMESTIC CURRENCYDOMESTIC FINANCIAL MARKETSDURABLEECONOMIC CHARACTERISTICSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEECONOMICSECONOMIES OF SCALEEQUITY MARKETSEQUITY STAKESEXTERNAL FINANCEEXTERNAL FINANCINGEXTERNAL FUNDINGFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL RELATIONSHIPSFINANCIAL SECTORFINANCIAL SECTOR POLICIESFINANCIAL SERVICESFINANCIAL STRUCTUREFINANCIAL STRUCTURESFINANCIAL SYSTEMFINANCIAL SYSTEM DEVELOPMENTFINANCIAL SYSTEMSFINANCIAL TRANSACTIONSFIRM GROWTHFOREIGN BANKSFOREIGN CURRENCYFOREIGN CURRENCY DEPOSITSFOREIGN FINANCIAL INSTITUTIONSFUNDING SOURCESGOVERNANCE STANDARDSHOME COUNTRIESHOST COUNTRYHOUSEHOLDSINFORMATION ACQUISITIONINFORMATION ASYMMETRYINFORMATION DISCLOSUREINSTITUTIONAL INFRASTRUCTUREINSURANCEINTANGIBLEINTANGIBLE ASSETSINTERNATIONAL BANKINTERNATIONAL FINANCIAL INTEGRATIONINVESTMENT PROJECTSINVESTOR PROTECTIONLEGAL DISPUTELEGAL SYSTEMLEGAL SYSTEMSLENDERSLIQUIDITYLOCAL CURRENCYLONG-TERM FUNDINGLONG-TERM INSTRUMENTSLONG-TERM INVESTMENTMARKET ECONOMIESMARKET EFFICIENCYPERMANENT SHOCKSPRIVATE BONDPRODUCTIVITYPROTECTION OF MINORITY SHAREHOLDERRETURNSSAVINGSSECURITIESSECURITIES HOLDINGSSMALL BUSINESSSPECIALIZED BANKSSTART-UPSSTOCK MARKETSTOCK MARKET DEVELOPMENTSTRUCTURAL ADJUSTMENTSUBSIDIARIESTAXTAX LAWSTRANSACTIONTRANSITION ECONOMIESUNIONUNIVERSAL BANKSVALUATIONVENTURE CAPITALWorld Bank10.1596/1813-9450-5833