Click here for search results
Home high above and home deep down below -- lending in Hungary, Volume 1
 
Author:Banai, Adam; Kiraly, Julia; Nagy, Marton ; Country:Hungary;
Date Stored:2011/10/05Document Date:2011/10/01
Document Type:Policy Research Working PaperSubTopics:Bankruptcy and Resolution of Financial Distress; Currencies and Exchange Rates; Emerging Markets; Debt Markets; Banks & Banking Reform
Language:EnglishRegion:Europe and Central Asia
Report Number:WPS5836Collection Title:Policy Research working paper ; no. WPS 5836
Volume No:1  

Summary: 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 foreign exchange lending to unhedged borrowers, which was a main moving force of the credit boom. Depreciation of forint-denominated subsidized housing loans and the increased risk premium significantly deteriorated customers' positions and resulted in rocketing nonperforming loans. A recession, deteriorating portfolios, and lack of efficient workout. The introduction of strict regulation froze banking activity and the danger of recovery without lending emerged. This paper compares the pre- and post-crisis lending activity and analyzes the lack of regulation in the pre-crisis period and the inefficient regulation in the post-crisis period.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 34 pagesOfficial version*2.38 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/E90L4XO4S0