In early 1992, both liquidity problems and structural weakness stemming from the communist era precipitated a banking crisis.
As a result, effective bankruptcy legislation was enacted and privately owned; well-managed banks emerged as market leaders.
[citation needed] Today, near-ideal conditions for the banking sector exist.
Foreigners are not restricted from buying bank shares or acquiring majority holdings.
[citation needed] On 20–22 June, the monetary reform of Estonia took place.