The Conditions of the Development of Businesslike Behavior in a 2-tier Banking System (An "ex-ante" Evaluation of the Hungarian Banking Reform)

Research output: Contribution to journalArticlepeer-review

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 languageAmerican English
Pages (from-to)49-60
Number of pages12
JournalActa Oeconomica
Volume38
Issue number1-2
StatePublished - 1987

Fingerprint

Dive into the research topics of 'The Conditions of the Development of Businesslike Behavior in a 2-tier Banking System (An "ex-ante" Evaluation of the Hungarian Banking Reform)'. Together they form a unique fingerprint.

Cite this