Hungary implemented its banking reform on January 1, 1987. The essence of the reform consisted in transferring the competences for domestic currency operations with the domestic enterprise sector from the National Bank to commercial banks. The National Bank restricted its activities to operations in foreign currencies, and to its functions as a Central Bank. The commercial banks are to compete with each other and to be profit-oriented. A number of non-specialized commercial banks, which are planned to be independent and profit-oriented, were established in Bulgaria in 1987. Reforms in Soviet banking have gained new momentum. A reform was implemented per January 1, 1988 which basically consists in transferring the operations of the State Bank (GOSBANK) with the enterprise sector and with the population to sectoral commercial banks and in increasing the freedom of the commercial banks in extending credits.