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From Berlin to the Bering Strait, the business of banking has sprung to life. This analysis considers the impact of banking reform on macroeconomic stabilization and the suitability of universal banks, the role of banking regulation and the advantages of 'narrow banks' during transition, the cleaning up of bad debts, and the reform of the payments system. The book assesses the lessons which can be drawn from reforms in Central Europe for the later reformers in the former Soviet Union and the Balkans. It considers the impact of banking reform on macroeconomic stabilization and the suitability of German-type universal banks; the role of banking regulation and the advantages of 'narrow banks' during transition; the cleaning-up of bad debts; bank privatization and reform of the payments system. Five chapters follow which review the experience of some of the 'second-wave' countries: Estonia, Georgia, Romania, Russia and Ukraine.