IDEAS home Printed from https://ideas.repec.org/a/mnb/bullet/v1y2006i1p27-33.html
   My bibliography  Save this article

Fast credit growth: equilibrium convergence or risky indebtedness?

Author

Listed:
  • Gergely Kiss

    (Magyar Nemzeti Bank (central bank of Hungary))

Abstract

This article is of relevance from an economic policy point of view – it attempts to answer a question of current economic relevance raised in many member states of the European Union. Is the fast credit growth witnessed in recent years part of an equilibrium process or rather an excessive rise in lending involving risks? The analysis prepared by the MNB suggests that in the new EU member states, the macroeconomic trends explain in great depth the rapid growth in lending witnessed since the transition to a market economy. It is important to note, however, that there are signs of excessive growth in lending in the region, particularly in the Baltic states. Stability risks may arise in Hungary in relation to the increase in household lending experienced in recent years.

Suggested Citation

  • Gergely Kiss, 2006. "Fast credit growth: equilibrium convergence or risky indebtedness?," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 1(1), pages 27-33, June.
    • Handle: RePEc:mnb:bullet:v:1:y:2006:i:1:p:27-33
    as

    Download full text from publisher

    File URL: http://www.mnb.hu/letoltes/mnb-bull-2006-06-gergely-kiss.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katalin Bodnár & Zsolt Kovalszky & Emese Hudák, 2014. "Recovery from crises and lending," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 13(4), pages 57-85.
    2. Nicolae Dardac & Iustina Boitan, 2009. "The Impact Of Household Sector Risks To The Soundness Of The Romanian Banking System," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-59.

    More about this item

    Keywords

    financial deepening; credit growth; transition economies; panel econometrics; endogeneity bias;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:bullet:v:1:y:2006:i:1:p:27-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maja Bajcsy (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.