Transformation, Development, and Characteristics of the Hungarian Banking Sector

Abstract

The dissertation is based on a research that was aimed at defining the most important features of the transformation of the Hungarian banking sector that began in the 1980’s, and accelerated after the regime change by the opening of the market, reinforcement of fiscal discipline, and privatization. Moreover, the thesis examines the consequences of this transformation as it relates to the competitiveness of the banking sector and social welfare. The research focused on a comprehensive examination of the question whether the path taken by the Hungarian banking reform had a successful effect on the sector’s performance. The most important findings of the dissertation are summarized as follows.