Hungarian Bank Research Articles

Empirical analysis of the market structure of the Hungarian bank market

This paper analyzes the market structure of the Hungarian bank market and the effects of the financial crisis of 2008 on it. With a static and a dynamic panel model we estimate the elasticity of total revenues with respect to changes in input prices so that we can determine the market structure based on the Panzar and Rosse methodology for the period between 2003 and 2020. We test the input price elasticity according to the balance sheet and profit and loss data of the top 13 companies. The results show that the Hungarian bank market was a monopolistic competition or a monopoly market in long run equilibrium. To see the effects of the financial crisis we use three subsamples, furthermore we estimate and test the H-statistic with a fixed effect model. During the examined period the level of factor price elasticity increased in time.

Effect of introduction of German and Hungarian bank levies on banks’ risk-taking behavior

Policymakers introduce bank levies (BLs) to reduce the probability of crises. In this study, we evaluate the effects of the Hungarian and German BLs implemented in 2010 and 2011, respectively, on the banks’ risk-taking behavior. Our analysis compares two completely different BL designs. The German BL is designed to increase as banks’ total liabilities increase, while the Hungarian BL is assessed on total assets. The results unambiguously demonstrate that a BL on assets increases banks’ credit risk. The results of analyzing the influence that introducing BLs has had on the German banking sector demonstrate that BL on liabilities decreases banks’ credit risk. An improved understanding of the impact of regulation on the risky activity of EU banks is very important for a wide range of financial market participants, including borrowers, shareholders regulators and supervisors, especially during turbulent times caused by the COVID-19 pandemic and the Russian war in Ukraine.

Supervision without regulation: Discount limits at the Austro–Hungarian Bank, 1909–13

AbstractWe show that nineteenth century central banks could use credit limits for discount loans as a means to enforce supervisory standards long before they had any formal regulatory powers. Drawing on novel microdata from the Austro–Hungarian Bank's archives, we document that credit limits were continuously monitored and that their size was contingent on counterparties’ liquidity and capital position. Counterparties had an economic motive to abide by informal prudential ‘rules of the game’: higher credit limits enabled counterparties to streamline their day‐to‐day liquidity management. We exploit the heterogeneous exposure of counterparties to an exogenous liquidity shock to evidence that the Bank relaxed credit limits during crises to fulfil its role as a lender of last resort.

Incidence of Bank Levy and Bank Market Power

This is the first analysis of the incidence of a bank tax that is imposed on banks’ balance sheets. Within the framework of an oligopolistic version of the Monti-Klein model, the pass-through of a bank tax levied on loans is stronger when elasticity of credit demand is low. To test this hypothesis, we investigate the incidence of the Hungarian bank tax that was introduced in 2010 on banks’ assets. This case is well suited for our analysis because the tax rate is much higher for large banks than for small banks, which allows relying on difference-in-difference methodology to disentangle the impact of the tax from any other shock that might have occurred simultaneously. In line with model predictions, our estimations show that the tax is shifted to customers with the smallest demand elasticity, such as households. In terms of economic policy implications, our results suggest that enhanced borrower mobility could reduce the ability of banks to shift taxes to customers.

Incidence of Bank Levy and Bank Market Power

This is the first analysis of the incidence of a bank tax that is imposed on banks’ balance sheets. Within the framework of an oligopolistic version of the Monti-Klein model, the pass-through of a bank tax levied on loans is stronger when elasticity of credit demand is low. To test this hypothesis, we investigate the incidence of the Hungarian bank tax that was introduced in 2010 on banks’ assets. This case is well suited for our analysis because the tax rate is much higher for large banks than for small banks, which allows relying on difference-in-difference methodology to disentangle the impact of the tax from any other shock that might have occurred simultaneously. In line with model predictions, our estimations show that the tax is shifted to customers with the smallest demand elasticity, such as households. In terms of economic policy implications, our results suggest that enhanced borrower mobility could reduce the ability of banks to shift taxes to customers.

A német vállalatok terjeszkedésének földrajzi jellemzői – Magyarország mint célterület

Közismert, hogy Németország évtizedek óta a világgazdaság meghatározó áru- és tőkeexportőr országa, míg Magyarországon a rendszerváltás utáni exportvezérelt gazdaságfejlesztési modell a külföldi működő tőke importjára épül, amelyben Németországnak – mint hazánk első számú befektetőjének – kulcsfontosságú szerep jut.A cikk a német működőtőke-befektetések felől közelítve elemzi Magyarországot mint telephelyet a német vállalati rendszerben. Választ keres az elmúlt évtizedek dinamikus német vállalati terjeszkedésének okaira, földrajzi jellegzetességeire, Magyarországnak mint célterületnek a megítélésére, kiemelve, hogy Magyarország – mint telephely – milyen előnyökre építhet a jövőben, és melyek azok a kritikus tényezők, amelyek hátráltatják a további német beruházások megjelenését, bővülését.A cikk megállapítja, hogy a német befektetések motivációjában mind a piacszerzés, mind pedig a költségcsökkentés fontos szerepet játszik. Utóbbi jelentőségének újbóli növekedése is a német termelési hálózat nemzetköziesedését jelzi, határokon átívelő termelésoptimalizálási célokat követve.A német vállalatok terjeszkedésének célterületei jelentősen átalakultak az elmúlt évtizedekben: A világgazdasági erőterek hagyományos képének megfelelően Kelet-Közép- Európa a német vállalatok fontos bázisát jelenti. Főként a 2008-as gazdasági válságot követően azonban erőteljessé vált a német expanzió a BRIC (Brazília, Oroszország, India, Kína) országokban.Hazánk pozíciója a kelet-közép-európai térségben az ezredfordulót követően meggyengült, majd az utóbbi években kis mértékben javul. Legfontosabb lokalizációs előnyünk a szakképzett munkaerő, amely főként a magasabb hozzáadott értéket jelentő tevékenységeknél (a hagyományosnak számító járműgyártáson kívül a K+F vagy az egyre növekvő számú szolgáltatóközpontok esetében is) kulcskérdés. Éppen ezért problematikus, hogy a megfelelően képzett munkaerő kínálatával egyre kevésbé elégedettek a német befektetők. Szintén figyelmet érdemel az a tény, hogy a német beruházók számára a kiszámítható gazdaságpolitika rendkívül fontos szempont. Ennek megítélése javul ugyan, de még így is elég kedvezőtlen.

A cross-national comparative study of blood pressure levels and hypertension prevalence in Canada and Hungary

Hungary has one of the highest cardiovascular (CV) mortality and stroke rates compared to other countries in Europe and North America. Data from two recent blood pressure (BP) screening projects in Hungary and Canada provided us with the opportunity to compare potential differences in the prevalence of hypertension between these countries. From the Ontario Blood Pressure Survey, 880 white Canadians between 20 and 62 years old with white-collar occupation were selected and compared with a total of 1000 Hungarian bank employees in the same age range. Identical methods were employed for CV risk factor screening and BP measurements using the BpTRU instrument. Hypertension was defined by elevated BP measurement (SBP ≥140 mmHg and/or DBP ≥90 mmHg) or current intake of antihypertensive medication. Canadian participants were on average 10 years older with a higher rate of obesity, diabetes and high cholesterol. Smoking was more prevalent among Hungarians (29.4 vs. 22.5%, P < 0.001). Despite being younger, Hungarians exhibited significantly higher SBP (121.3 ± 4.3 vs. 111.6 ± 14.1, P < 0.001) and DBP (78.5 ± 10.5 vs. 70.8 ± 9.5, P < 0.001), which remained significant after adjustment for age and use of antihypertensive medication as well as sex and CV risk factors. Age-adjusted prevalence of hypertension was significantly higher and poorly controlled among Hungarians (P < 0.001). The increased prevalence of hypertension among young and middle-aged Hungarians compared with Canadians could represent an essential contributor to the high CV mortality and stroke rates in Hungary. BP awareness, treatment and control require improved medical attention and should be addressed early among young Hungarians.

Austro-Hungarian Bank building in Subotica

During the negotiations between Austria and Hungary in 1867 when dual Austro-Hungarian Monarchy was formed, the question of the central bank was not touched to prevent further complications. In 1878, after years of prolonged negotiations, the central bank was successfully transformed into an institute in which Austria and Hungary had an equal share. The 'Austro- Hungarian Bank' acted as a central bank for both parts of the Empire. The dualistic character of the institute was characterized by two managements and two head offices in Vienna and Budapest. During first decade of 20th century it was built few dozens of bank buildings in Hungary and the most important: the central Austro-Hungarian Bank building in Budapest on Szabadsbg tjr 8. Bank building in Budapest was built according to the design made by Ignbc Alpbr who won the competition. Most of the other bank buildings built throughout Hungary were designed by architect Juzsef Hubert, but Austro-Hungarian bank building in Subotica was designed by architect Ferenc Juzsef Raichl in 1901. Main topic of this paper is research of architecture of Austro-Hungarian Bank Building in Subotica. It is obvious, although smaller in size, that the building was designed according to the main concept of the central bank building in Budapest. Compositions of the both facade applied similar architectural elements, like pillars, projections, attics, plinth and also decorative elements that symbolizes the function of a building. Inner organization of space also corresponds to each other, in both buildings: beside offices there were several apartments for renting. In contrast to other bank buildings in Hungary designed by Juzsef Hubert, bank building in Subotica, although made according to the concept of Central Bank building in Budapest represents remarkable and unique architectural masterpiece including all: architectural composition, decorative elements and function of a building.

Markets from Interactions: The Technology of Mass Personalization in Consumer Banking

This paper explores the interactional foundations of markets as it examines a puzzle in banking technology. Customer Relationship Management was introduced at a Hungarian bank to personalize clerks’ interactions with clients. The software assembles customer profiles and calculates individualized sales offers, yet the outcome in face-to-face use is standardized. To explain this result the paper asks how the process of buyer-seller interaction accomplishes market exchange, complementing structural economic sociology, particularly its sampling bias and concept of social relationships as independent variables. Based on ethnographic methods—observation and interviews at a bank—the paper provides finegrained analysis of the interaction process, finding that bank clerks try to smoothly interact simultaneously with the software-generated client profile and with the client in person, which limits their capacity to personalize. The paper contributes to the theory of markets in two ways. First, interaction dynamics structure market exchange. The specific spatial and temporal order of interacting enables and constrains how products can be offered and accepted. Exchange unfolds as actors negotiate and exploit the social and technical demands of interaction. Second, social relationships and fleeting impersonal transactions are not mutually exclusive ways of doing exchange. Interaction between buyer and seller completely blends anonymous calculative and familiar-trusting elements. Strategic market action may be oriented towards turning strangers into relationships and vice versa by reconfiguring how interactions are accomplished.

P008 Characterization of umbilical cord blood hematopoietic stem, progenitor cell subsets and mesenchymal stem cell lines: a Hungarian cord blood bank report

P008 Characterization of umbilical cord blood hematopoietic stem, progenitor cell subsets and mesenchymal stem cell lines: a Hungarian cord blood bank report

Secrets to the successful Hungarian bank privatization: the benefits of foreign ownership through strategic partnerships

This paper reviews and assesses the privatization of the banking sector in Hungary that took place during the 1990s. The policy choices made by Hungarian policy makers reflect both internal constraints stemming from the end of central planning to the adoption of market-determined mechanisms as well as external macroeconomic shocks at the time. Hungary chose a path that has led to a relatively large degree of foreign ownership in the banking sector. While there is a growing literature on the question of foreign ownership in a nation’s banking sector there has been relatively little thought given to whether the manner in which foreign ownership is allowed to proceed matters. The Hungarian experience is particularly interesting in this regard, since, policy makers chose not to follow some of the recommendations made by western financial institutions. Instead, the vehicle that led to foreign ownership operated through “strategic foreign partners”. Under certain conditions, this approach has much to be recommended for emerging market economies more generally.

Molecular cloning and characterization of low-molecular-weight glutenin sequences from an old Hungarian wheat variety, Bánkúti 1201

The old Hungarian wheat variety Bank´uti 1201 was widely grown in Hungary mainly because of its outstanding breadmaking quality. In order to isolate and preserve the genes of this remarkable variety a cDNA library wascreated from the immature kernels of a selected line of Bank´uti 1201.When the library was screened a large number of LMW glutenin-specific clones were isolated and of these eight genes were finally sequenced. The sequence alignments revealed several new LMW glutenin genes. The results obtained so far suggest that this old variety may carry many other unknown storage protein genes of either theoretical or commercial importance.

Hungarian bank pioneers e-banking

Hungarian bank pioneers e-banking

Practice and Experiment in the Equipment Development Process within the Model of the Hungarian World Bank Project for the New Vocational Education

Abstract This article looks at the setting up, operation and areas of interest of the Media Group within the Hungarian World Bank project for the new vocational education.

Pauer v. Hungarian People’s Republic.

Recognition of Acts of Foreign States — Foreign Confiscatory Legislation — Extraterritorial Effect of — The Law of Italy.Jurisdiction — Territorial Limits of — Foreign Confiscatory Legislation — The Law of Italy.Jurisdiction — Exemptions from — Foreign States — Action against Hungarian People’s Republic for Debt Owed by Hungarian Bank Nationalized by Hungarian Legislative Enactment — Whether Italian Courts Competent to Exercise Jurisdiction — The Law of Italy.

The Articles of agreement of the International Monetary Fund and the unenforceability of certain exchange contracts

In 1947 there came before the Court of Appeals of Amsterdam a case concerning a claim by a resident of the Netherlands against a Hungarian Bank, which claim was based on a contract governed by the law of the State of New York. One of the questions to be decided by the Court was whether the fact that Hungarian exchange control regulations prohibited the Bank from effecting that payment to a non-resident would necessitate the rejection of the plaintiff's claim.