Home High Above and Home Deep Down Below : Lending in Hungary
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 fo...
| Main Authors: | , , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005153617 http://hdl.handle.net/10986/3600 |
| id |
okr-10986-3600 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASSET PRICES BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK FINANCING BANKING MARKET BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BRANCH NETWORK BROKERS BUDGET DEFICIT CAPITAL ADEQUACY CAPITAL MARKET CAPITAL MARKETS CAPITAL REGULATION CAPITAL REQUIREMENTS CASH OUTFLOW CENTRAL BANK COLLATERAL COMMERCIAL BANKING COMMERCIAL BANKS CONFLICT OF INTEREST COOPERATIVE CREDIT CREDIT BOOM CREDIT BOOMS CREDIT EXPANSION CREDIT FLOW CREDIT FLOWS CREDIT GROWTH CREDIT HISTORY CREDIT INSTITUTIONS CREDIT RISK CREDITORS CREDITWORTHINESS CRISIS LENDING CURRENCY CRISES CURRENT ACCOUNT DEFICIT DEBT DEBT SERVICE DEBT SERVICING DEBTORS DEBTS DEFAULT RATES DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRECIATION DERIVATIVES DEVALUATION DISBURSEMENT DISBURSEMENTS DOMESTIC BANKING DOMESTIC BANKING SYSTEM DOMESTIC BANKS DOMESTIC CURRENCY DOMESTIC MARKET ECONOMIC IMBALANCES ECONOMIC MODEL ECONOMIC RISKS EIB EMERGING MARKETS ENTRY BARRIER EQUILIBRIUM EQUILIBRIUM LEVEL EQUILIBRIUM LEVELS EQUILIBRIUMS EUROPEAN CENTRAL BANK EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATE RISK EXCHANGE RATES EXCHANGE-RATE EXPLANATORY VARIABLES EXTERNAL FUNDING EXTERNAL INDEBTEDNESS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL STABILITY FINANCING REQUIREMENT FLOW OF CREDIT FORECLOSURE FOREIGN ASSETS FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY LENDING FOREIGN CURRENCY LOAN FOREIGN CURRENCY LOANS FOREIGN CURRENCY REVENUES FOREIGN EXCHANGE FOREIGN FUNDS FOREIGN INTEREST FOREIGN INTEREST RATES FOREIGN LOANS GOVERNMENT BONDS GOVERNMENT PAPERS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROWTH RATE HOLDING HOME CURRENCY HOME EQUITY HOME EQUITY LOANS HOUSING INDEBTEDNESS INDIVIDUAL LOAN INFLATION INFORMATION ASYMMETRY INSURANCE INSURANCE COMPANIES INTERBANK MARKETS INTEREST RATE DIFFERENTIAL INTEREST RATE VOLATILITY INTEREST RATES INTEREST RATES ON LOANS INTEREST-RATE INTERNAL SAVINGS INTERNATIONAL BANK INTERNATIONAL FINANCIAL INSTITUTIONS ISSUANCE LABOR MARKET LACK OF TRANSPARENCY LEGISLATION LENDER LENDER OF LAST RESORT LENDERS LEVIES LEVY LIABILITY LIABILITY SIDE LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY CRISIS LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY PROBLEMS LIQUIDITY RATIO LIQUIDITY RATIOS LIQUIDITY RISKS LOAN LOAN AGREEMENTS LOAN CONTRACT LOAN MARKET LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN VOLUME LOANS FROM BANKS LOCAL BANKS LOCAL CURRENCY LONG-TERM LOANS MACROECONOMIC VARIABLES MARKET ENVIRONMENT MARKET PLAYERS MARKET SEGMENT MARKET SHARE MATURITY MATURITY MISMATCH MATURITY MISMATCHES MONETARY FUND MONETARY POLICY MONETARY REGIME MORTGAGE MORTGAGE BOND MORTGAGE BOND MARKET MORTGAGE BONDS MORTGAGE LENDING MORTGAGE LOAN MORTGAGE LOANS MORTGAGES MULTINATIONAL BANK MUNICIPAL BONDS NOMINAL INTEREST RATES NONPERFORMING LOANS OPEN ECONOMY OUTSTANDING AMOUNT PORTFOLIO QUALITY PORTFOLIOS PREPAYMENT PRIVATE CREDIT PRIVATIZATION PROBABILITY OF DEFAULT PROFITABILITY PRUDENTIAL SUPERVISION PUBLIC DEBT RAPID GROWTH REAL INTEREST REAL INTEREST RATE RECESSION REGULATORY AUTHORITIES RESERVE RESERVE RATIOS RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN RISK EXPOSURE RISK FACTOR RISK MANAGEMENT RISK PREMIUM SECONDARY MARKETS SECURITIES STATE GUARANTEE STATE GUARANTEES STATE INTERVENTION STATE LOAN STOCK MARKET SUBSIDIARIES SUPERVISORY AUTHORITY SUPERVISORY POWER SWAP SWAP MARKET SWAPS SYSTEMIC RISK TAX TRADING TRANSACTION TRANSITION ECONOMY TRANSPARENCY UNCERTAINTY UNDERDEVELOPED CAPITAL MARKET UNSECURED LOANS VARIABLE INTEREST RATES |
| spellingShingle |
ASSET PRICES BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK FINANCING BANKING MARKET BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BRANCH NETWORK BROKERS BUDGET DEFICIT CAPITAL ADEQUACY CAPITAL MARKET CAPITAL MARKETS CAPITAL REGULATION CAPITAL REQUIREMENTS CASH OUTFLOW CENTRAL BANK COLLATERAL COMMERCIAL BANKING COMMERCIAL BANKS CONFLICT OF INTEREST COOPERATIVE CREDIT CREDIT BOOM CREDIT BOOMS CREDIT EXPANSION CREDIT FLOW CREDIT FLOWS CREDIT GROWTH CREDIT HISTORY CREDIT INSTITUTIONS CREDIT RISK CREDITORS CREDITWORTHINESS CRISIS LENDING CURRENCY CRISES CURRENT ACCOUNT DEFICIT DEBT DEBT SERVICE DEBT SERVICING DEBTORS DEBTS DEFAULT RATES DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRECIATION DERIVATIVES DEVALUATION DISBURSEMENT DISBURSEMENTS DOMESTIC BANKING DOMESTIC BANKING SYSTEM DOMESTIC BANKS DOMESTIC CURRENCY DOMESTIC MARKET ECONOMIC IMBALANCES ECONOMIC MODEL ECONOMIC RISKS EIB EMERGING MARKETS ENTRY BARRIER EQUILIBRIUM EQUILIBRIUM LEVEL EQUILIBRIUM LEVELS EQUILIBRIUMS EUROPEAN CENTRAL BANK EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATE RISK EXCHANGE RATES EXCHANGE-RATE EXPLANATORY VARIABLES EXTERNAL FUNDING EXTERNAL INDEBTEDNESS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL STABILITY FINANCING REQUIREMENT FLOW OF CREDIT FORECLOSURE FOREIGN ASSETS FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY LENDING FOREIGN CURRENCY LOAN FOREIGN CURRENCY LOANS FOREIGN CURRENCY REVENUES FOREIGN EXCHANGE FOREIGN FUNDS FOREIGN INTEREST FOREIGN INTEREST RATES FOREIGN LOANS GOVERNMENT BONDS GOVERNMENT PAPERS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROWTH RATE HOLDING HOME CURRENCY HOME EQUITY HOME EQUITY LOANS HOUSING INDEBTEDNESS INDIVIDUAL LOAN INFLATION INFORMATION ASYMMETRY INSURANCE INSURANCE COMPANIES INTERBANK MARKETS INTEREST RATE DIFFERENTIAL INTEREST RATE VOLATILITY INTEREST RATES INTEREST RATES ON LOANS INTEREST-RATE INTERNAL SAVINGS INTERNATIONAL BANK INTERNATIONAL FINANCIAL INSTITUTIONS ISSUANCE LABOR MARKET LACK OF TRANSPARENCY LEGISLATION LENDER LENDER OF LAST RESORT LENDERS LEVIES LEVY LIABILITY LIABILITY SIDE LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY CRISIS LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY PROBLEMS LIQUIDITY RATIO LIQUIDITY RATIOS LIQUIDITY RISKS LOAN LOAN AGREEMENTS LOAN CONTRACT LOAN MARKET LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN VOLUME LOANS FROM BANKS LOCAL BANKS LOCAL CURRENCY LONG-TERM LOANS MACROECONOMIC VARIABLES MARKET ENVIRONMENT MARKET PLAYERS MARKET SEGMENT MARKET SHARE MATURITY MATURITY MISMATCH MATURITY MISMATCHES MONETARY FUND MONETARY POLICY MONETARY REGIME MORTGAGE MORTGAGE BOND MORTGAGE BOND MARKET MORTGAGE BONDS MORTGAGE LENDING MORTGAGE LOAN MORTGAGE LOANS MORTGAGES MULTINATIONAL BANK MUNICIPAL BONDS NOMINAL INTEREST RATES NONPERFORMING LOANS OPEN ECONOMY OUTSTANDING AMOUNT PORTFOLIO QUALITY PORTFOLIOS PREPAYMENT PRIVATE CREDIT PRIVATIZATION PROBABILITY OF DEFAULT PROFITABILITY PRUDENTIAL SUPERVISION PUBLIC DEBT RAPID GROWTH REAL INTEREST REAL INTEREST RATE RECESSION REGULATORY AUTHORITIES RESERVE RESERVE RATIOS RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN RISK EXPOSURE RISK FACTOR RISK MANAGEMENT RISK PREMIUM SECONDARY MARKETS SECURITIES STATE GUARANTEE STATE GUARANTEES STATE INTERVENTION STATE LOAN STOCK MARKET SUBSIDIARIES SUPERVISORY AUTHORITY SUPERVISORY POWER SWAP SWAP MARKET SWAPS SYSTEMIC RISK TAX TRADING TRANSACTION TRANSITION ECONOMY TRANSPARENCY UNCERTAINTY UNDERDEVELOPED CAPITAL MARKET UNSECURED LOANS VARIABLE INTEREST RATES Banai, Adam Kiraly, Julia Nagy, Marton Home High Above and Home Deep Down Below : Lending in Hungary |
| geographic_facet |
Europe and Central Asia Europe and Central Asia Europe Eastern Europe Hungary |
| relation |
Policy Research working paper ; no. WPS 5836 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Banai, Adam Kiraly, Julia Nagy, Marton |
| author_facet |
Banai, Adam Kiraly, Julia Nagy, Marton |
| author_sort |
Banai, Adam |
| title |
Home High Above and Home Deep Down Below : Lending in Hungary |
| title_short |
Home High Above and Home Deep Down Below : Lending in Hungary |
| title_full |
Home High Above and Home Deep Down Below : Lending in Hungary |
| title_fullStr |
Home High Above and Home Deep Down Below : Lending in Hungary |
| title_full_unstemmed |
Home High Above and Home Deep Down Below : Lending in Hungary |
| title_sort |
home high above and home deep down below : lending in hungary |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005153617 http://hdl.handle.net/10986/3600 |
| _version_ |
1764387386649739264 |
| spelling |
okr-10986-36002021-04-23T14:02:11Z Home High Above and Home Deep Down Below : Lending in Hungary Banai, Adam Kiraly, Julia Nagy, Marton ASSET PRICES BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK FINANCING BANKING MARKET BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BRANCH NETWORK BROKERS BUDGET DEFICIT CAPITAL ADEQUACY CAPITAL MARKET CAPITAL MARKETS CAPITAL REGULATION CAPITAL REQUIREMENTS CASH OUTFLOW CENTRAL BANK COLLATERAL COMMERCIAL BANKING COMMERCIAL BANKS CONFLICT OF INTEREST COOPERATIVE CREDIT CREDIT BOOM CREDIT BOOMS CREDIT EXPANSION CREDIT FLOW CREDIT FLOWS CREDIT GROWTH CREDIT HISTORY CREDIT INSTITUTIONS CREDIT RISK CREDITORS CREDITWORTHINESS CRISIS LENDING CURRENCY CRISES CURRENT ACCOUNT DEFICIT DEBT DEBT SERVICE DEBT SERVICING DEBTORS DEBTS DEFAULT RATES DEPOSIT DEPOSIT INSURANCE DEPOSITS DEPRECIATION DERIVATIVES DEVALUATION DISBURSEMENT DISBURSEMENTS DOMESTIC BANKING DOMESTIC BANKING SYSTEM DOMESTIC BANKS DOMESTIC CURRENCY DOMESTIC MARKET ECONOMIC IMBALANCES ECONOMIC MODEL ECONOMIC RISKS EIB EMERGING MARKETS ENTRY BARRIER EQUILIBRIUM EQUILIBRIUM LEVEL EQUILIBRIUM LEVELS EQUILIBRIUMS EUROPEAN CENTRAL BANK EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATE RISK EXCHANGE RATES EXCHANGE-RATE EXPLANATORY VARIABLES EXTERNAL FUNDING EXTERNAL INDEBTEDNESS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL STABILITY FINANCING REQUIREMENT FLOW OF CREDIT FORECLOSURE FOREIGN ASSETS FOREIGN BANKS FOREIGN CURRENCY FOREIGN CURRENCY LENDING FOREIGN CURRENCY LOAN FOREIGN CURRENCY LOANS FOREIGN CURRENCY REVENUES FOREIGN EXCHANGE FOREIGN FUNDS FOREIGN INTEREST FOREIGN INTEREST RATES FOREIGN LOANS GOVERNMENT BONDS GOVERNMENT PAPERS GOVERNMENT SECURITIES GROSS DOMESTIC PRODUCT GROWTH RATE HOLDING HOME CURRENCY HOME EQUITY HOME EQUITY LOANS HOUSING INDEBTEDNESS INDIVIDUAL LOAN INFLATION INFORMATION ASYMMETRY INSURANCE INSURANCE COMPANIES INTERBANK MARKETS INTEREST RATE DIFFERENTIAL INTEREST RATE VOLATILITY INTEREST RATES INTEREST RATES ON LOANS INTEREST-RATE INTERNAL SAVINGS INTERNATIONAL BANK INTERNATIONAL FINANCIAL INSTITUTIONS ISSUANCE LABOR MARKET LACK OF TRANSPARENCY LEGISLATION LENDER LENDER OF LAST RESORT LENDERS LEVIES LEVY LIABILITY LIABILITY SIDE LIQUID ASSET LIQUID ASSETS LIQUIDITY LIQUIDITY CRISIS LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY PROBLEMS LIQUIDITY RATIO LIQUIDITY RATIOS LIQUIDITY RISKS LOAN LOAN AGREEMENTS LOAN CONTRACT LOAN MARKET LOAN PORTFOLIO LOAN PORTFOLIOS LOAN PRODUCT LOAN PRODUCTS LOAN VOLUME LOANS FROM BANKS LOCAL BANKS LOCAL CURRENCY LONG-TERM LOANS MACROECONOMIC VARIABLES MARKET ENVIRONMENT MARKET PLAYERS MARKET SEGMENT MARKET SHARE MATURITY MATURITY MISMATCH MATURITY MISMATCHES MONETARY FUND MONETARY POLICY MONETARY REGIME MORTGAGE MORTGAGE BOND MORTGAGE BOND MARKET MORTGAGE BONDS MORTGAGE LENDING MORTGAGE LOAN MORTGAGE LOANS MORTGAGES MULTINATIONAL BANK MUNICIPAL BONDS NOMINAL INTEREST RATES NONPERFORMING LOANS OPEN ECONOMY OUTSTANDING AMOUNT PORTFOLIO QUALITY PORTFOLIOS PREPAYMENT PRIVATE CREDIT PRIVATIZATION PROBABILITY OF DEFAULT PROFITABILITY PRUDENTIAL SUPERVISION PUBLIC DEBT RAPID GROWTH REAL INTEREST REAL INTEREST RATE RECESSION REGULATORY AUTHORITIES RESERVE RESERVE RATIOS RESERVE REQUIREMENT RESERVE REQUIREMENTS RESERVES RETURN RISK EXPOSURE RISK FACTOR RISK MANAGEMENT RISK PREMIUM SECONDARY MARKETS SECURITIES STATE GUARANTEE STATE GUARANTEES STATE INTERVENTION STATE LOAN STOCK MARKET SUBSIDIARIES SUPERVISORY AUTHORITY SUPERVISORY POWER SWAP SWAP MARKET SWAPS SYSTEMIC RISK TAX TRADING TRANSACTION TRANSITION ECONOMY TRANSPARENCY UNCERTAINTY UNDERDEVELOPED CAPITAL MARKET UNSECURED LOANS VARIABLE INTEREST RATES 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. 2012-03-19T18:05:18Z 2012-03-19T18:05:18Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111005153617 http://hdl.handle.net/10986/3600 English Policy Research working paper ; no. WPS 5836 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Europe and Central Asia Europe and Central Asia Europe Eastern Europe Hungary |