EFFECTIVENESS OF BANK PRIVATIZATION IN ECONOMICALLY BACKWARDS COUNTRIES: A COMPREHENSIVE ANALYSI

Abstract

This paper depicts a comprehensive analysis of the effectiveness of bank privatization in both developing and under-developed countries. This study tries to portray the alignment of bank privatization with its positive impact on the financial sector in economically backward countries. First, this study examines the actual effect of transferring ownership of public banks into the hands of private entities. Secondly, it tries to navigate the performance of the private bank in a long-run phenomenon. The regression and descriptive analysis of the time series and cross-sectional data indicate that the changing ownership of the public banks to the private sector increases economic activities, societal movements and political stability in economically backward countries.