Banai, Ádám and Király, Júlia and Nagy, Márton (2012): „Home high above and home deep down below?” Lending in Hungary. Published in: Crisis Aftermath: Economic policy changes in the EU and its Member States, Conference Proceedings, Szeged, University of Szeged , Vol. ISBN 9, (2012): pp. 36-62.
Download (766Kb) | Preview
In Hungary in the pre-crisis period the bank sector initiated private credit boom significantly contributed to the accumulation of economic imbalances. Nevertheless, before the 2008 crisis no special regulatory measure was taken to mitigate the FX lending to unhedged borrowers, which was one of the main moving force of the credit boom. Depreciation of the HUF and the increased risk premium significantly deteriorated the customers’ positions and resulted rocketing NPL-s. Recession, deteriorating portfolios, lack of efficient workout and the introduced strict regulation did freeze banking activity and the danger of recovery without lending did emerge. The paper compares the pre- and post-crisis lending activity and analyse both the lack of regulation in the pre-crisis and the inefficient regulation in the post-crisis period.
|Item Type:||MPRA Paper|
|Original Title:||„Home high above and home deep down below?” Lending in Hungary|
|Keywords:||FX lending; macro prudential measures; credit growth; financial stability|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Beata Farkas|
|Date Deposited:||06. Aug 2012 13:59|
|Last Modified:||12. Feb 2013 10:35|
Banai, Á. – Király, J. – Nagy, M. (2010a): The demise of the golden days in Hungary. (“Foreign” and “local” banks – before and after the crisis). BIS Papers no. 54. December.
Banai, Á. – Király, J. – Várhegyi, É. (2010b): A rendszerváltás 20 évének egy egyedi fejezete: külföldi bankok dominanciája a kelet-közép-európai régióban, különös tekintettel Magyarországra (A unique chapter in the 20 years since the transition: the predominance of foreign banks in the Central and East European region, particularly Hungary). MNB Occasional Papers no. 89.
Basso, H. S. – Calvo-Gonzalez, O. – Jurgilas, M. (2007): Financial dollarization: The role of banks and interest rates. European Central Bank Working Paper no. 748.
Csajbók, A. – Hudecz, A. – Tamási, B. (2010): Foreign currency borrowing of households in New EU Member States. MNB Occasional Papers no. 87.
de Haas, R. – van Lelyveld, I. (2009): Internal capital markets and lending by multinational bank subsidiaries. MPRA Paper no. 13164. February. http://mpra.ub.uni-muenchen.de/13164/.
Hilbers, P. – Otker-Robe, I. – Pazarbasioglu, C. – Johnsen, G. (2005): Assessing and managing rapid credit growth and the role of supervisory and prudential policies. IMF Working Paper 2005/151.
IMF (2004): Are credit booms in emerging markets a concern? in IMF World Economic Outlook. April.
Kiss, G. – Nagy, M. – Vonnák, B. (2006): Credit growth in Central and Eastern Europe: Convergence or boom? MNB Working Paper. October.
MNB (2004): Report on Financial Stability. December. http://english.mnb.hu/Kiadvanyok/mnben_stabil.
MNB (2006): Report on Financial Stability. April. http://english.mnb.hu/Kiadvanyok/mnben_stabil.
MNB (2008): Report on Financial Stability. October. http://english.mnb.hu/Kiadvanyok/mnben_stabil.
MNB (2009): Report on Financial Stability. April. http://english.mnb.hu/Kiadvanyok/ mnben_stabil.
MNB (2010): Report on Financial Stability. November. http://english.mnb.hu/Kiadvanyok/ mnben_stabil.
MNB (2011): Report on Financial Stability. May. http://english.mnb.hu/Kiadvanyok/ mnben_stabil.
Móré, Cs. – Nagy, M. (2004): Competition in the Hungarian banking market. MNB Working Paper. September.
Sóvágó, S. (2011): Identifying supply and demand in the Hungarian corporate loan market. Mimeo. Budapest