In addition to credit, market and liquidity risk, measuring and managing operational risk (risk associated with people, systems, processes and external events) is a great challenge for banks. In 2010, around HUF 35 billion in operational risk losses were reported in the banking sector overall,...

This article explores the risks that arise as local governments become indebted. The article is based on interviews conducted with the heads of the local government business branches of the most important credit institutions in terms of local government financing, as well as related data, such...

The high dependency of the domestic banking sector on foreign funds and its open on-balance-sheet foreign exchange position, as well as the considerable increase in sovereign and parent bank credit risk premia due to the sovereign debt crisis, warrant a more accurate mapping of the pricing...

The capital adequacy regulation which came into force on 1 January 2008 for the Hungarian banking sector, in line with the Basel II directives and generally applied in the European Union, brought the novelty of distinct management of operational risk. Operational risk is defined as the risk of...

This article briefly presents the general practice of lending surveys aimed at revealing loan supply behaviour, as well as the literature analysing their usability. The focus of our analysis is the so-called Lending Survey (SLO), conducted by the MNB since 2003. In the context of our backtesting...

Over the past one and a half years, the amount of credit granted by banks to Hungarian local governments has doubled, and the gap between their cash deficit and net additional indebtness has increased. This borrowing boom is not the result of a drastic change in the financial management of local...

Nowadays financial institutions due to regulation and internal motivations care more intensively on their risks. Besides previously dominating market and credit risk new trend is to handle operational risk systematically. Operational risk is the risk of loss resulting from inadequate or failed...

During the financial and economic crisis, non-price type restrictive factors came to the fore in financial markets as well; these mainly consist of limits and margin requirements. Specific relevant signs were observed in the domestic financial markets in late 2011 and early 2012: following the...

Our paper explores the risks that arise due to indebtedness of Hungarian local governments. Our analysis relies on interviews conducted with the heads of the local government business branches of the credit institutions most important in terms of local government financing and on the related...

Japan is going through a transformation, yet it is difficult to judge which model should be chosen as a direction to go in with corporate reforms. Badly needed initiatives seeking to replace outdated managerial habits by new best practices in Japanese firms are being jeopardized by...