Civic Review· VOL 17. Special Issue, 2021, 41–59., DOI: 10.24307/psz.2021.0004
The study analyses the reasons for and extent of the differences in lending trends in Hungary in the wake of the 2008 financial crisis and the Covid-19 crisis. In 2008, the lack of monetary and fiscal room for manoeuvre, coupled with the lack of a macroprudential framework and the unhealthy lending structure exacerbated the banking sector’s procyclical behaviour and caused a credit crunch, deepening the economic downturn. When the Covid-19 crisis occurred, however, Hungary had a significantly sounder macroeconomic and lending structure, and a complex, developed macroprudential framework. All of this helped to underpin credit dynamics during the economic downturn. The large volume of guarantee and loan programmes and the payment moratorium played a pivotal role in this positive outcome, which was also supported by macroprudential measures maintaining the lending capacity of banks.
Journal of Economic Literature (JEL) codes: G20, H12
Keywords: coronavirus crisis, lending, crisis management