Template-Type: ReDIF-Article 1.0
Author-Name: Ádám Balog
Author-Name: György Matolcsy
Author-Name: Nagy Márton
Author-Name: Balázs Vonnák
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: baloga@mnb.hu
Title: Credit crunch in Hungary between 2009 and 2013: is the creditless period over?
Abstract: This article provides a review of the Hungarian credit crunch between 2009 and 2013,
including its causes and its nature, with particular regard to a factor playing a crucial role
in growth: SME-lending. It is argued that, although the indebtedness of the corporate
sector was much less excessive and unhealthy in structure than that of the household
and the public sectors, the disruptions of the financial intermediary system resulted, to a
large degree, in the decline in corporate lending. The article then goes on to present the
Funding for Growth Scheme (FGS) and the economic logic behind its operating mechanism.
Finally, it assesses the impact of the first phase of the programme on lending and economic
growth, and it concludes that the FGS helped the Hungarian economy extricate itself from
the downward spiral of the credit crunch.
Classification-JEL: E44, E58, G01, G21
Keywords: Credit crunch, Unconventional monetary policy, Funding for Growth Scheme
Journal: Financial and Economic Review 
Pages: 11-34
Volume: 13
Issue: 4
Year: 2014
File-URL: http://english.hitelintezetiszemle.hu/letoltes/1-balog-en.pdf
Handle: RePEc:mnb:finrev:v:13:y:2014:i:4:p:11-34