The Institutional Framework for the Supervision of the Financial Intermediary System in Hungary

Kálmán, János (2015) The Institutional Framework for the Supervision of the Financial Intermediary System in Hungary. Public Finance Quarterly = Pénzügyi Szemle, 60 (1). pp. 125-138.

PDF - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader


The economic crisis unfolding in 2007 had significant implications in terms of reinterpreting the role and responsibility of central banks. This paper presents a set of criteria for a “good” institutional framework and based on that it examines the reform of the Hungarian supervisory system. Political implications have integrated the powers of the Hungarian Financial Supervisory Authority within the organisation of the National Bank of Hungary (MNB); however, policy coherence has not been fully achieved. While capability is provided, the supervisory system may become overloaded, potentially affecting the capacity of MNB. The operations of the financial supervisory function are not fully independent. The resilience of regulation has been achieved; however, in some cases it may come into conflict with the principle of an independent supervisory authority. The new Hungarian financial supervisory system basically meets the criteria of a “good” institutional framework; however, in respect of several of these criteria, certain “risks” may arise.

Item Type:Article
Uncontrolled Keywords:financial intermediary system, supervision, monetary policy, operational independence, central bank
JEL classification:E58 - Central Banks and Their Policies
G18 - General Financial Markets: Government Policy and Regulation
ID Code:8855
Deposited By: Alexa Horváth
Deposited On:18 Sep 2023 11:36
Last Modified:18 Sep 2023 11:36

Repository Staff Only: item control page


Downloads per month over past year

View more statistics