Abstract (may include machine translation)
From 1st January 1987 the Hungarian banking system has been transformed. Five new, generally authorized commercial banks started operation. Nevertheless, there exist considerable obstacles to creating competition in the banking sector that would force to a veritable business behaviour. A definite sector of clients was assigned to every new bank and this has disadvantageous consequences by reducing the equality of chances and by preserving monopolistic features. The differences in the structure of liabilities might lead to differences in profitability, independent of the activities of the banks. That type of central bank regulation which, in the field of refinancing policy and practice retains the previous, direct credit distribution system, can also become a serious setback in forming the business character of the new banks.
Original language | American English |
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Pages (from-to) | 49-60 |
Number of pages | 12 |
Journal | Acta Oeconomica |
Volume | 38 |
Issue number | 1-2 |
State | Published - 1987 |