Hungary: Selected Issues

Publication Date:

May 12, 2017

Electronic Access:

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Summary:

This Selected Issues paper reviews the relationship between real GDP growth and domestic bank lending to the private sector in Hungary after the global financial crisis, It draws on a cross-country analysis of European countries. The recessions that followed the crisis were deeper and lasted longer than the average recession. Hungary, like some other countries, experienced a creditless recovery. Although it is difficult to disentangle the causes, this analysis concludes that (1) both credit demand and supply were hurt by the crisis; (2) key factors influencing credit developments include loan quality, deposit funding, and bank capital, as well as the macroeconomic environment; and (3) lending by Hungarian banks to the private sector finally seems to be picking up.

Series:

Country Report No. 2017/124

Subject:

English

Publication Date:

May 12, 2017

ISBN/ISSN:

9781484300473/1934-7685

Stock No:

1HUNEA2017002

Pages:

46

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