Template-Type: ReDIF-Article 1.0
Author-Name: András László
Author-Workplace-Name: MA student at the Corvinus University of Budapest
Author-Email: laszloandr@gmail.com


Title: Impact of the Funding for Growth Scheme on
the Hungarian economy

Abstract: In this paper, I examine the efficiency of the Funding for Growth Scheme (hereinafter
FGS or Scheme), based on the loans disbursed until the end of 2015. The FGS is an
unconventional instrument of the Magyar Nemzeti Bank, launched in 2013, the
purpose of which is to provide micro, small- and medium-sized enterprises (SME)
sector with loans on favourable terms. The efficiency of the Scheme means, on
the one hand, to what extent the problem addressed by the Scheme was relevant,
and on the other hand, the type of solution provided by it, and whether it did
not involve excessive cost and risk compared to the anticipated results. I regard
these as the two main pillars based on which its efficiency can be judged. I also
present the Scheme’s descriptive data and practical implementation. According
to the conclusions, the Scheme offered an adequate solution for a problem of
national economy significance, it has set lending to SMEs on a growth path and
also contributed to economic growth, with relatively low costs and risks compared
to the achievements.

Classification-JEL: E43, E50, E52, E59
Keywords: Funding for Growth Scheme, unconventional monetary policy, credit
crunch
Journal: Financial and Economic Review  
Pages: 65–87
Volume: 15
Issue: 4
Year: 2016
File-URL: http://english.hitelintezetiszemle.hu/letoltes/andras-laszlo.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:15:y:2016:i:4:p:65-87