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Resolving Conflicts in Measuring Banking System Competitiveness – MNB Banking System Competitiveness Index

Author

Listed:
  • Péter Asztalos

    (Magyar Nemzeti Bank)

  • Gábor Horváth

    (Magyar Nemzeti Bank)

  • Štefan Krakovský

    (Magyar Nemzeti Bank)

  • Tamás Tóth

    (Magyar Nemzeti Bank)

Abstract

The competitiveness of a national economy structurally depends on the efficiency and quality of financial intermediation, which is in a close relationship with the competitiveness of the banking system. In our opinion, banking system competitiveness can best be captured through the sustained supportive role of the banking system in economic growth, which in practice is implemented through the efficient allocation of financial resources. In the course of our research we developed an index designed to measure the competitiveness of European banking systems which, in our understanding, is the first of its kind. It models competitiveness from two different or even conflicting perspectives – from the consumer and from the investor side alike – and synthesizes the results received. Our analysis points out that the Hungarian banking system lags significantly behind its peers with respect to the price-setting of loans to households, digitalisation and operational efficiency, and presents the sources of competitive advantage in national economies with a competitive banking system in place.

Suggested Citation

  • Péter Asztalos & Gábor Horváth & Štefan Krakovský & Tamás Tóth, 2017. "Resolving Conflicts in Measuring Banking System Competitiveness – MNB Banking System Competitiveness Index," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 16(3), pages 5-31.
    • Handle: RePEc:mnb:finrev:v:16:y:2017:i:3:p:5-31
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    finance; capital attractiveness; stability; growth; competitiveness;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

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