Hungary: Selected Issues

International Monetary Fund

No 2017/124, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; PWS worker; bank; worker; wage; grey economy; PWS wage; PWS participant; PWS program; PWS contract; Bank credit; Credit; Tax return filing compliance; Global financial crisis of 2008-2009; Global; Europe (search for similar items in EconPapers)
Pages: 46
Date: 2017-05-12
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