EBRD blog European Bank for Reconstruction and Development

Tag: Hungary

Hungarian Deleveraging: What Do Bank CEOs Tell Us?

Hungary has been hit hard by the recent wave of bank deleveraging: credit to households and enterprises contracted more than in most other EBRD countries. Why? Three reasons spring to mind.

First, recent BIS data show that –together with banks in Slovenia and Croatia– Hungarian banks experienced the most severe reductions in funding from foreign creditors, including their own parents.… Read more

Can preferential lending programmes be the magic bullet to revive lending?

Earlier this month the Hungarian National Bank (MNB) announced a preferential Funding for Growth Scheme (FGS) and an FX swap facility, less than one month after Mr Matolcsy’s appointment as governor. It was presented as being inspired by the Funding for Lending Scheme launched by the Bank of England last year.… Read more

Measures to support lending in Hungary: will it reverse the credit crunch?

Finding ways to revive stagnant or contracting corporate and retail lending has been a key policy challenge across the transition region. 

Hungary, for instance, has experienced a contraction in corporate lending by about 1.6 per cent of GDP over the past year, and surveys of credit conditions indicate a continued reluctance of credit officers to extend fresh funds.… Read more

In defense of foreign banks

‘Banker’ has recently become somewhat of a dirty word and ‘foreign banker’ a most reviled sub-species. Over the last months foreign banks have, amongst other things, been accused of abandoning some of the emerging markets that have contributed so much to their profitability over the last decade.… Read more