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Categorising the Central Bank's Credit Incentive Programs by Targeting and Intensity

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  • Kolozsi, Pál Péter
  • Parragh, Bianka
  • Pulai, György

Abstract

The global financial crisis that broke out in 2007–2008 substantively set back activity in the credit market. Several central banks reacted to this by implementing credit incentive programs. Based on the program parameters, our study evaluated 14 international and Hungarian credit incentive programs launched by central banks in terms of targeting and intensity (strength of incentives). After the outbreak of the crisis, there was a clear trend for credit incentive programs becoming increasingly targeted and highly incentivised, without any clear trends in terms of sizing. The shift from less targeted and less highly incentivised programs towards more targeted, higher-intensity ones was typical both internationally and within Hungary. The Hungarian credit incentive programs introduced after 2013 show extensive targeting and intensity levels, even on an international scale.

Suggested Citation

  • Kolozsi, Pál Péter & Parragh, Bianka & Pulai, György, 2017. "Categorising the Central Bank's Credit Incentive Programs by Targeting and Intensity," Public Finance Quarterly, Corvinus University of Budapest, vol. 62(4), pages 502-523.
    • Handle: RePEc:pfq:journl:v:62:y:2017:i:4:p:502-523
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    File URL: https://unipub.lib.uni-corvinus.hu/8758/
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    References listed on IDEAS

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    1. Olena Havrylchyk, 2016. "Incentivising Lending to Smes with the Funding for Lending Scheme: Some Evidence from Bank-Level Data in the United Kingdom," EconomiX Working Papers 2016-24, University of Paris Nanterre, EconomiX.
    2. Ádám Balog & György Matolcsy & Nagy Márton & Balázs Vonnák, 2014. "Credit crunch in Hungary between 2009 and 2013: is the creditless period over?," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 13(4), pages 11-34.
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    More about this item

    Keywords

    credit incentives; monetary policy; crisis management;
    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
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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