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World Bank - Czech Republic: capital market review

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Analyzing the efficiency of capital markets is a useful exercise for any country, as a well-functioning capital market can contribute significantly to better resource mobilization and ultimately to a better growth performance. The Czech Republic implemented major reforms in the early 1990s and achieved impressive economic results. However, macroeconomic performance started faltering in 1996. Although the reforms contributed to the Czech economys early successes, the regulatory framework for enterprises and financial institutions contained several flaws that limited the potential gains from privatization and reduced the overall efficiency of the economy. The weak protection of minority shareholder rights and the absence of other important elements of internal governance proved to be another important obstacle to sound management and active restructuring. Weaknesses in the external mechanisms of governance also opened room for abuse by large shareholders and managers. This report makes a detailed assessment of the regulatory and institutional framework in the major sectors of the Czech capital market, identifies the deficiencies that still remain, and provides recommendations for further improvements.

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title Czech Republic Capital Market Review World Bank Country Study - photo 1

title:Czech Republic : Capital Market Review World Bank Country Study
author:
publisher:World Bank
isbn10 | asin:0821345052
print isbn13:9780821345054
ebook isbn13:9780585164700
language:English
subjectCapital market--Czech Republic.
publication date:1999
lcc:HG5470.3.A3C94 1999eb
ddc:332/.0414
subject:Capital market--Czech Republic.
Page i
A World Bank Country Study
Czech Republic
Capital Market Review
Czech Republic capital market review - image 2
Page ii
Copyright 1999
The International Bank for Reconstruction
and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing May 1999
World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member countries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for the use of governments and the academic, business and financial, and development communities. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly.
Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use is granted by the World Bank provided that the appropriate fee is paid directly to Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, U.S.A., telephone 978 750 8400, fax 978 750 4470. Please contact Copyright Clearance Center prior to photocopying items.
For permission to reprint individual articles or chapters, please fax your request with complete information to the Republication Department, Copyright Clearance Center, fax 978 750 4470.
All other queries on rights and licenses should be addressed to the World Bank at the address above, or fax no. 202 522 2422.
Library of Congress Cataloging-in-Publication Data
Czech Republic: capital market review.
p. cm. - (A World Bank country study)
Includes bibliographical references (p. ).
ISBN 0-8213-4505-2
1. Capital market-Czech Republic. I. World Bank. II. Title:
Capital market review. III. Series.
HG5470.3.A3C94 1999
332'.0414-dc21 99-23305
CIP
Page iii
Contents
Abstract
vi
Currency and Equivalent Units
vii
Acronyms and Abbreviations
vii
Executive Summary
viii
Picture 3
Macroeconomic Performance After Independence
viii
Picture 4
Structural Deficiencies in the Czech Capital Market
ix
Picture 5
Recent Efforts to Strengthen the Regulatory Framework
xi
Picture 6
An Overview of the Current Status of Capital Market Reforms
xii
Picture 7
Identifying Remaining Gaps in the Regulatory and Institutional Framework
xiii
Picture 8
Policy Recommendations
xiv
Chapter I: Introduction
1
Picture 9
Macroeconomic Performance after Independence
1
Picture 10
The Status of Structural Reforms
4
Picture 11
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