Template-Type: ReDIF-Article 1.0

Author-Name: Barna Fömötör
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: fomotorb@mnb.hu

Author-Name: Anett Parádi-Dolgos
Author-Workplace-Name: University of Kaposvár
Author-Email: dolgos.anett@ke.hu

Author-Name: Zoltán Sipiczki
Author-Workplace-Name: PhD candidate at the University of Kaposvár
Author-Email: sipiczki.zoltan@ke.hu


Title: Behavioural Finance and Consumer Loan
Contracts

Abstract: Due to the situation that has emerged in the wake of retail lending, particularly
foreign currency lending, every circumstance that leads to excessive systemic risks
must be taken into consideration, namely the absence of consumer self-control,
under- and overreactions and the risks stemming from intertemporal retail consumer
decisions. The authors attempt to make consumer decisions understandable by
analysing biased intertemporal models. Based on the relevant literature, the authors
use a behavioural science approach to shed light using on the underlying factors of
action or passivity, the factors that introduce bias into consumer rationality and their
potential management, in particular asset regulation and the fair bank acts, deeper
and more comprehensive regulation of legal relationships, keeping in mind not only
the key interest of consumer protection, but also the predictable and sustainable
long-term functioning of financial institutions.

Classification-JEL: D18, D90, L15
Keywords: retail indebtedness, intertemporal decisions, systemic risk, regulation
Pages: 156–169
Volume: 16
Issue: 2
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/behavioural-finance-barna-fomotor-anett-paradi-dolgos-zoltan-sipiczki.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:2:p:156-169