Template-Type: ReDIF-Article 1.0

Author-Name: Tamás Szücs
Author-Workplace-Name: University of Pécs
Author-Email: tomi@ktk.pte.hu

Author-Name: József Ulbert
Author-Workplace-Name: University of Pécs
Author-Email: ulbert@ktk.pte.hu

Title: Role and Measurement of Fair Valuation in the Hungarian Credit
Institution Sector

Abstract: The crisis demonstrated that the role of the accounting standards applicable to
fair valuation may be particularly important in the credit institution sector. The
paper examines the influence exerted on the balance sheets of the Hungarian
credit institutions by the fair valuation and the international and the Hungarian
economic policy regulatory changes relating to valuation. We place special emphasis
on examining whether the foreign-owned credit institution subsidiaries operating
in Hungary and their parent banks responded differently to the challenges posed
by the crisis. We elaborated a method for the measurement of the real involvement
and using this we examine how the fair value involvement of the Hungarian credit
institution sector has changed before, during and after the crisis. Generalising the
problem, we found that the degree of the fair value involvement may represent an
additional risk factor upon assessing the credit institutions’ operational efficiency
and that the Hungarian subsidiaries followed a slightly different path than their
parent banks.

Classification-JEL: G01, M40, M41
Keywords: crisis, fair value accounting, fair value hierarchy
Pages: 51–73
Volume: 16
Issue: 3
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/tamas-szucs-jozsef-ulbert.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:3:p:51-73