 The COVID-19 pandemic and discouraged borrowers among Hungarian companiesZsolt Szabó Public Finance Quarterly, 2023, vol. 69, issue 4, 45-61 Abstract: An increasing attention has been paid since the millennium to companies who have loan demand but are afraid of refusal. The self-rationing of loan demand is also affected by the coronavirus pandemic according to the economic literature, however, there are only a few empirical studies regarding this topic. Based on the corporate surveys of the Hungarian Development Bank (MFB-INDIKÁTOR) we analyse that to what extent and to which direction did the latent loan demand of the Hungarian companies change as a consequence of the pandemic, which corporate segments reacted more sensitively to the crisis, and whether there is a measurable effect of the negative perception towards the banks to the lending decisions of the companies. On the basis of the results of cross-tabulation analyses the pandemic moderated the fear of loan application only temporarily; the behaviour of older firms, larger companies and the agricultural sector can be considered relatively stable regarding this issue; finally the role of the experiences and in many cases the negative preconceptions about the banks having a long history together play important roles in self-restraint. Keywords: discouraged borrowers; latent demand for credit; COVID pandemic; corporate behaviour (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pfq:journl:v:69:y:2023:i:4:p:45-61 Access Statistics for this article More articles in Public Finance Quarterly from Corvinus University of Budapest Contact information at EDIRC. |
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