The role of MNB bills in domestic financial markets. What is the connection between the large volume of MNB bills, bank lending and demand in the government securities markets?

The two-week MNB bill is a central component of Hungary’s monetary policy instruments; it is a key instrument of the central bank, the interest rate of which is identical to the central bank base rate. By mid-2009, the outstanding amount of MNB bills reached HUF 3,000 billion, which – in addition to representing one third of the central bank’s liabilities – accounts for a significant part of the domestic banking sector’s liquid assets. By using the two-week bill to absorb the excess liquidity of the banking sector, the central bank ensures that developments in banks’ interest rates will be driven by the MNB bill as an opportunity cost. The volume of these liquid assets builds up gradually, regardless of banks’ willingness to lend. Indeed, the growth observed in the holdings of MNB bills helped to relieve the liquidity tensions of credit institutions and contributed to gradually reducing the role of this factor in the decline in lending activity in 2009. Nonetheless, lending remained restrained despite the ample liquidity, which primarily reflects banks’ deteriorating risk appetite. One of the major correlations in the central bank’s balance sheet is the fact that, while credit institutions are free to decide on the volume of two-week MNB bills they purchase at the individual level, they are unable to affect the volume of bills in the overall banking sector. The accelerated growth rate in the volume of two-week bills observed in the previous year resulted from the use of foreign currency loans to finance the general government, which implies that the large volume of two-week bills is a consequence of poor demand in the government securities market, rather than the reason for this. In a regional comparison, however, the relatively high central bank base rate does not affect the volume of the key instrument, as the central bank interest rate has no direct impact on the liquidity of the banking sector.central banks' monetary policy instruments, open market operations, determining interest rates.

Secondary market trading infrastructure of government securities

The subject of our study is the trading infrastructure of government securities markets, which has undergone fundamental changes driven by the appearance of non-exchange electronic platforms and the rapid rise of their share in the trading volume of developed markets. The summary of the relevant literature indicates that improved trading transparency clearly increases the efficiency of the market (its role in price discovery). Its effect on market liquidity, however, is less clear-cut. While the loss of anonymity most likely decreases liquidity, transparency on the quantity and price of concluded transactions enhances liquidity. The emergence of electronic trading on developed government securities markets has not changed the fundamental structure of trading, which continues to take place in two segments: between dealers (B2B) and between dealers and clients (B2C). There is, however, no interbank trading platform on the Hungarian government securities market, although data vendors and other platforms serving clients have sprung up. Nonetheless, more than 90 per cent of trading takes place through traditional OTC channels. Consequently, actors which are interested in market processes and prices, but do not actively trade on the Hungarian market have trouble accessing high-standard, quasi-real-time price information. The MiFID initiative – launched at the European level – may contribute to improving the Hungarian market’s transparency by engendering the regulation of the bond market similar to that of the equity market. Introduction of the euro in Hungary will fundamentally change the country’s market structure. The sovereign debt manager’s leeway will increase, and the key direct actors on the government securities market are expected to be the major international actors, which are interested in the centralisation of government securities trading by currencies. Based on the broad electronisation of the euro-denominated government securities market, it is likely that electronic platforms will also gain ground on the Hungarian market, following the introduction of the single currency at the latest.government securities market, secondary trading, transparency, efficiency, market liquidity.

The Interbank Money Market Past and Future Trends

This paper analyses the development of the three segments of the interbank money markets in Hungary and the euro area: unsecured lending/deposit transactions, sale and repurchase agreements (repos) and FX swaps. Reviewing the experiences of some eurozone members the authors draw conclusions on the expected future development of the money market segments. The analysis of the Hungarian money market is based on regular reports by banks and on a survey covering 11 domestic commercial banks, which was conducted by the National Bank of Hungary in May 2003.financial liberalization, financial markets

A siker elemzése a vállalatok akvizíciós és fúziós tranzakcióinál

Az akvizíciók és fúziók slágerjellegét beárnyékolják a nagyarányú sikertelenségről beszámoló kutatások és felmérések eredményei. Ahhoz, hogy tudományos nézőpontból elfogadható módon interpretálhassuk az egyes kutatások M&A tranzakciók sikerességére vonatkozó eredményeit, előbb szükséges néhány fontos kérdés tisztázása. Mit értünk siker alatt? Milyen időtávon mérjük a sikert? Kinek a szempontjából értelmezzük a sikert? Milyen mintán végezzük az elemzést? Milyen módszert alkalmazunk az elemzéshez? A tanulmány a felsorolt kérdésekre adható válaszlehetőségeket elemzi

The stele of YHWH in Egypt: the prophecies of Isaiah 18-20 concerning Egypt and Kush

This is a study of Isaiah 18-20, three chapters in the so-called Isaianic prophecies concerning the nations, Isaiah 13-23 (24-27). Beyond being located close to each other in this literary corpus, there is at least one common element that ties these three chapters together: Isaiah 18-20 deal with two neighbouring countries of the Nile, Kush and Egypt respectively. The two lands were politically closely related in the era of the prophet Isaiah, so that addressing them in proximity to each other should not be surprising in a book set in the period of Uzziah, Jotham, Ahaz, and Hezekiah (Isaiah 1:1). Through a detailed analysis of the three chapters I hope to contribute to a better understanding of the collection of prophecies on the nations in the book of Isaiah and, more remotely, of the wider phenomenon of prophecies concerning the nations, so prevalent in the Hebrew Bible. Sections of these three chapters captured the attention of scholars writing with various concerns, differing focus, adopting a diversified methodology. But a comprehensive study concentrating on Isaiah 18-20 has not yet been made. Insofar as Isaiah 18-20 is part of a collection of prophecies concerning various nations, the analysis of these chapters necessitates a survey of previous research on Isa 13-23 as a whole. At the same time, the methodological divergences in the background of studies devoted to Isa 13-23 can barely be understood without a concise assessment of the larger frame of this collection, the book of Isaiah