## Hungary: Selected Issues

_IMF Staff Country Reports, May 12, 2017_

## Source details

**Canonical URL:** [Hungary: Selected Issues](https://www.imf.org/en/publications/cr/issues/2017/05/12/hungary-selected-issues-44909)

## Other formats

- [Markdown version](/en/publications/cr/issues/2017/05/12/hungary-selected-issues-44909/index.md)
- [Structured JSON version](/en/publications/cr/issues/2017/05/12/hungary-selected-issues-44909/index.json)
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## Bibliographic details
- Published: May 12, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484300473.002

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### Summary of paper
- Title: Hungary: Selected Issues
- Publication date: May 12, 2017
- Series: Country Report No. 2017/124
- Issue: 124
- Pages: 46
- Volume: 2017
- DOI: https://doi.org/10.5089/9781484300473.002
- Stock No: 1HUNEA2017002
- ISBN: 9781484300473
- ISSN: 1934-7685
- Subjects: Bank credit, Banking, Credit, Financial crises, Global financial crisis of 2008-2009, Money, Revenue administration, Tax return filing compliance
- Keywords: bank, Bank credit, CR, Credit, Europe, Global, Global financial crisis of 2008-2009, grey economy, ISCR, PWS contract, PWS participant, PWS program, PWS wage, PWS worker, Tax return filing compliance, wage, worker

### Major findings and characterization of the post-crisis period
- The paper reviews the relationship between real GDP growth and domestic bank lending to the private sector in Hungary after the global financial crisis.
- The analysis 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 experienced a creditless recovery, similar to some other countries.
- Lending by Hungarian banks to the private sector finally seems to be picking up.

### Core analytical conclusions
- Both credit demand and credit supply were hurt by the crisis.
- Key factors influencing credit developments include:
  - loan quality
  - deposit funding
  - bank capital
  - the macroeconomic environment

### Implicit policy-relevant implications (as reflected in the analysis)
- Addressing loan quality, deposit funding, and bank capital is central to restoring robust private-sector lending.
- Improving the macroeconomic environment supports the recovery of credit supply and demand.
- Monitoring and supporting the nascent pick-up in lending by Hungarian banks is important for sustaining the recovery.

*International Monetary Fund. European Dept. "Hungary: Selected Issues", IMF Staff Country Reports 2017, 124 (2017).*

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2017/cr17124.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2017/cr17124.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2017/05/12/hungary-selected-issues-44909_