Chart 1 Outstanding amount of housing loans and …housing market Competitive situation with other...

MAGYAR NEMZETI BANK

1 LENDING SURVEY • MARCH 2017

ANNEX 1: CHARTS ON DEVELOPMENTS IN LOAN PORTFOLIOS AND ANSWERS TO THE

QUESTIONNAIRE

1.1. Lending to households

Chart 1 Outstanding amount of housing loans and the market share of banks completing the questionnaire

Note: The number and scope of banks varied during the periods under review (e.g. as a result of mergers and the inclusion of new banks). As of 2009, stock data also include those for credit institutions and branches.

80

82

84

86

88

90

92

94

96

98

100

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

20

03

H1

H2

20

04

H1

H2

20

05

H1

H2

20

06

H1

H2

20

07

H1

H2

20

08

H1

H2

20

09

Q1

Q2

Q3

Q4

20

10

Q1

Q2

Q3

Q4

20

11

Q1

Q2

Q3

Q4

20

12

Q1

Q2

Q3

Q4

20

13

Q1

Q2

Q3

Q4

20

14

Q1

Q2

Q3

Q4

20

15

Q1

Q2

Q3

Q4

20

16

Q1

Q2

Q3

Q4

per centHUF billion

Total housing loan portfolio

Housing loan portfolio of the respondents

Market share of the respondents (right-hand scale)

MAGYAR NEMZETI BANK

LENDING SURVEY • MARCH 2017 2

Chart 2 Outstanding amount of consumer loans and the market share of banks completing the questionnaire

Note: The number and scope of banks varied during the periods under review. The chart only plots market shares of the banks surveyed; it does not plot market shares of financial enterprises. As of 2009, stock data also include those for credit institutions and branches.

60

65

70

75

80

85

90

95

100

0

500

1000

1500

2000

2500

3000

3500

40002

00

3 H

1H

22

00

4 H

1H

22

00

5 H

1H

22

00

6 H

1H

22

00

7 H

1H

22

00

8 H

1H

22

00

9 Q

1Q

2Q

3Q

42

01

0 Q

1Q

2Q

3Q

42

01

1 Q

1Q

2Q

3Q

42

01

2 Q

1Q

2Q

3Q

42

01

3 Q

1Q

2Q

3Q

42

01

4 Q

1Q

2Q

3Q

42

01

5 Q

1Q

2Q

3Q

42

01

6 Q

1Q

2Q

3Q

4

per centHUF billion

Total consumer loan portfolio

Consumer loan portfolio of the respondents


MAGYAR NEMZETI BANK


Chart 3 Willingness of banks to extend housing loans and consumer loans (net percentage balance of respondents

reporting increased/decreased credit availability weighted by market share)

Chart 4 Credit conditions in the housing loan and consumer loan markets

(net percentage balance of respondents tightening/easing credit standards weighted by market share)

Note: The magnitude of tightening/easing is not shown in the chart.

-100

-80

-60

-40

-20

0

20

40

60

80

100

-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per centper cent

Consumer loans Housing loans

INC

REA

SED

ECR

EASE

INC

REA

SED

ECR

EASE

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Housing loans

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Consumer loans

TIG

HTE

NIN

GLO

OSE

NIN

G

MAGYAR NEMZETI BANK


Chart 5: Credit conditions in the housing loan market – non-pricing conditions

(net percentage balance of respondents tightening/easing credit conditions weighted by market share)


-100-80-60-40-20

020406080

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Maximum maturity

-100-80-60-40-20

020406080

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Required credit score

-100-80-60-40-20

020406080

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)per cent

Maximum loan-to-value ratio

-100-80-60-40-20

020406080

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent

Maximum monthly installment to income

MAGYAR NEMZETI BANK


Chart 6: Credit conditions in the housing loan market – pricing conditions



-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Spread on average loans

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Loan origination fees

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Premium on riskier loans

MAGYAR NEMZETI BANK


Chart 7 Factors contributing to changes in credit conditions in the case of housing loans

(net percentage balance of banks indicating a contribution of individual factors to tightening or easing weighted

by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Changes in the creditworthiness

of clients

Changes in bank’s current

or expected capital position

Changes in bank’s current or

expected liquidity position

Economic outlook Outlook of housing market

Competitivesituation

with other banksor non-banks

Changes in risk tolerance

Market sharegoals

per cent

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 H1 (e.)

Co

ntr

ibu

tin

g to

tig

hte

nin

gC

on

trib

uti

ng

to e

asin

g

MAGYAR NEMZETI BANK


Chart 8 Perceived demand for loans in the household segment

(net percentage balance of respondents reporting increase/decrease in demand weighted by market share)

Chart 9 Credit conditions in the consumer loan market –non-pricing conditions



-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Housing loans

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Consumer loans

WEA

KER

STR

ON

GER

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent

Maximum loan-to-value ratio

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent

Required credit score

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent

Maximum monthly installment to income

MAGYAR NEMZETI BANK


Chart 10 Credit conditions in the consumer loan market – non-pricing conditions



Chart 11 Credit conditions in the consumer loan market – pricing conditions



-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e

.)

per cent

Maximum maturity

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e

.)

per cent

Minimum downpayment

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

201

0 Q

1Q

32

01

1 Q

1Q

32

012

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent

Spread on average loans

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

201

2 Q

1Q

32

01

3 Q

1Q

32

01

4 Q

1Q

32

01

5 Q

1Q

32

01

6 Q

1Q

32

01

7 H

1 (e

.)

per cent

Loan origination fees

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent

Premium on riskier loans

MAGYAR NEMZETI BANK


Chart 12 Factors contributing to changes in credit conditions in the case of consumer loans

(net percentage balance of banks indicating a contribution of individual factors to tightening or easing weighted

by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Changes in the creditworthiness

of clients

Changes in bank’s current

or expected capital position

Changes in bank’s current or

expected liquidity position

Economic outlook Outlook of housing market

Competitivesituation

with other banksor non-banks

Changes in risk tolerance

Market sharegoals

per cent

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 H1 (e.)

Contr

ibuti

ng

to t

ighte

nin

gContr

ibuti

ng t

o e

asi

ng

MAGYAR NEMZETI BANK


Chart 13 Willingness to lend and credit conditions for different consumer loan products

(net percentage balance of respondents weighted by market share)


Chart 14 Credit conditions for different consumer loan products



-100

-80

-60

-40

-20

0

20

40

60

80

100

-100

-80

-60

-40

-20

0

20

40

60

80

100

Credit availability2016 Q4

Credit availabilty(expected) for 2017

H1

Credit conditions2016 Q4

Credit conditions(expected) for 2017

H1

per centper cent

Home equity loans Other Vehicle-financing loans

INC

REA

SED

ECR

EASE

TIGH

TENIN

GLO

OSEN

ING

-100

-80

-60

-40

-20

0

20

40

60

80

100

Max

imu

m m

atu

rity

Loan

ori

gin

atio

n f

ees Sp

read

Pre

miu

m o

n r

iski

er lo

ans

Min

imu

m d

ow

np

aym

ent

Max

imu

mLT

V r

atio

Max

imu

m r

atio

of

rep

aym

ent

/ in

com

e

Req

uir

ed c

red

it s

core

per cent


TIGH

TENIN

GLO

OSEN

ING

MAGYAR NEMZETI BANK


Chart 15 Demand for different consumer loan products (net percentage balance of banks reporting increase or

decrease weighted by market share)

Chart 16 Default rate of loans to households and loss given default

(net percentage balance of banks reporting increase or decrease weighted by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Perceived demandin 2016 Q4

Anticipated demandfor 2017 H1 (e.)

per cent


INCREASE

DECREASE

-100

-80

-60

-40

-20

0

20

40

60

80

100

Default rate in 2016Q4

Default rateanticipation for 2017

H1 (e.)

Loss given defaultin 2016 Q4

Loss given defaultanticipation

for 2017 H1 (e.)

per cent

Housing loans Consumer loans Home equity loans Other Vehicle-financing loans

DETER

IOR

ATIO

NIM

PR

OV

EMEN

T

MAGYAR NEMZETI BANK


1.2. Lending to the corporate sector

Chart 17 Outstanding amount of corporate loans and the market share of banks completing the questionnaire

Note: As of 2009, stock data also include those for credit institutions and branches.

0

10

20

30

40

50

60

70

80

90

100

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

20

03

H1

H2

20

04

H1

H2

20

05

H1

H2

20

06

H1

H2

20

07

H1

H2

20

08

H1

H2

20

09

Q1

Q2

Q3

Q4

20

10

Q1

Q2

Q3

Q4

20

11

Q1

Q2

Q3

Q4

20

12

Q1

Q2

Q3

Q4

20

13

Q1

Q2

Q3

Q4

20

14

Q1

Q2

Q3

Q4

20

15

Q1

Q2

Q3

Q4

20

16

Q1

Q2

Q3

Q4

per centHUF billion

Total corporate loan portfolioCorporate loan portfolio of the respondentsMarket share of the respondents (right-hand scale)

MAGYAR NEMZETI BANK


Chart 18 Outstanding amount of commercial real estate loans and the market share of banks completing the

questionnaire

Note: As of 2009, stock data also include those for credit institutions and branches. As of 2011 the data includes loans for

commercial real estate purchase, not just for development.

80

82

84

86

88

90

92

94

96

98

100

0

200

400

600

800

1000

1200

1400

1600

1800

2000

20

03

H1

H2

20

04

H1

H2

20

05

H1

H2

20

06

H1

H2

20

07

H1

H2

20

08

H1

H2

20

09

Q1

Q2

Q3

Q4

20

10

Q1

Q2

Q3

Q4

20

11

Q1

Q2

Q3

Q4

20

12

Q1

Q2

Q3

Q4

20

13

Q1

Q2

Q3

Q4

20

14

Q1

Q2

Q3

Q4

20

15

Q1

Q2

Q3

Q4

20

16

Q1

Q2

Q3

Q4

per centHUF billion

Total commercial real estate loan portfolio

Commercial real estate loan portfolio of the respondents


MAGYAR NEMZETI BANK


Chart 19 Willingness of banks to extend corporate loans

(net percentage balance of respondents reporting increased/decreased credit availability weighted by market

share)

Chart 20 Credit conditions by corporate category and for commercial real estate loans

(net percentage balance of respondents reporting tightening/easing weighted by market share)


-100

-80

-60

-40

-20

0

20

40

60

80

100

-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per centper cent

Non-financial corporations Large and medium-sized enterprisesSmall and micro-sized enterprises Commercial real estate

INCREASE

DECREASE

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Non-financial corporations

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Commercial real estate

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Small- and micro-sized enterprises

LOO

SEN

ING

TIG

HTE

NIN

G

MAGYAR NEMZETI BANK


Chart 21 Credit conditions in the corporate segment (net percentage balance of respondents reporting

tightening/easing weighted by market share)


Chart 22 Maximum maturities by corporate category



-100

-80

-60

-40

-20

0

20

40

60

80

100

Max

imu

m m

atu

rity

Max

imu

m s

ize

of

cre

dit

lin

e

Co

sts

of

cred

it li

ne

Spre

ad

Pre

miu

ms

char

ged

on

ris

kier

loan

s

Loan

co

ven

ants

Co

llate

ral

req

uir

emen

ts

Min

imu

m r

equ

ire

d c

red

it s

core

Mo

nit

ori

ng/

dat

a r

epo

rtin

g re

qu

irem

ent

per cent

2016 Q4 2017 H1 (e.)

TIGH

TENIN

GLO

OSEN

ING

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

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20

10

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11

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12

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20

13

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Q3

20

14

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Q3

20

15

Q1

Q3

20

16

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20

17

H1

(e.

)

per cent


-100

-80

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-40

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0

20

40

60

80

100

20

09

Q1

Q3

20

10

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11

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12

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20

13

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Q3

20

14

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Q3

20

15

Q1

Q3

20

16

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Q3

20

17

H1

(e.

)

per cent

Smalll- and micro-sized enterprises

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

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11

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12

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13

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20

14

Q1

Q3

20

15

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Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Large- and medium-sized enterprises

TIG

HTE

NIN

GLO

OSE

NIN

G

MAGYAR NEMZETI BANK


Chart 23 Maximum size of loans/credit lines by corporate category



Chart 24 Fee(s) charged for extending loans/credit lines by corporate category



-100

-80

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0

20

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100

20

09

Q1

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20

10

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11

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12

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13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

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20

12

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Q3

20

13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

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11

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Q3

20

12

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Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

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20

11

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20

12

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Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

MAGYAR NEMZETI BANK


Chart 25 Spread between lending rates and cost of funds by corporate category



Chart 26 Premium on higher risk loans by corporate sector



-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1Q

32

01

0 Q

1Q

32

01

1 Q

1Q

32

01

2 Q

1Q

32

01

3 Q

1Q

32

01

4 Q

1Q

32

01

5 Q

1Q

32

01

6 Q

1Q

32

01

7 H

1 (

e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

MAGYAR NEMZETI BANK


Chart 27 Covenant requirements by corporate category



Chart 28 Collateral requirements by corporate category



-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1Q

32

01

0 Q

1Q

32

01

1 Q

1Q

32

01

2 Q

1Q

32

01

3 Q

1Q

32

01

4 Q

1Q

32

01

5 Q

1Q

32

01

6 Q

1Q

32

01

7 H

1 (e

.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

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Q3

20

12

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Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

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20

10

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20

11

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Q3

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12

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13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

MAGYAR NEMZETI BANK


Chart 29 Minimum required credit score by corporate category



Chart 30 Monitoring/reporting requirements by corporate category



-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1Q

32

01

0 Q

1Q

32

01

1 Q

1Q

32

01

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1Q

32

01

3 Q

1Q

32

01

4 Q

1Q

32

01

5 Q

1Q

32

01

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1Q

32

01

7 H

1 (

e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

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Q3

20

12

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Q3

20

13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

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Q3

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12

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13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e

.)

per cent


TIG

HTE

NIN

GLO

OSEN

ING

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

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11

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Q3

20

12

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20

13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

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20

13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

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20

12

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13

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Q3

20

14

Q1

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20

15

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16

Q1

Q3

20

17

H1

(e.

)

per cent


TIG

HTE

NIN

GLO

OSE

NIN

G

MAGYAR NEMZETI BANK


Chart 31 Factors contributing to changes in credit conditions on corporate loans (net percentage balance of banks

indicating a contribution of individual factors to tightening or easing weighted by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Changes in bank’s current or expected

capital position

Changes in bank’s current or expected

liquidity position

Economic outlook Industry-specificproblems

Competititivesituation with otherbanks or non-bank

lenders

Changes in risktolerance

Market share goals

per cent

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 H1 (e.)

Co

ntr

ibu

tin

g to

tig

hte

nin

gC

on

trib

uti

ng

to e

asin

g

MAGYAR NEMZETI BANK


Chart 32 Perceived demand for corporate loans


Chart 33 Perceived demand for corporate loans by maturity


-100

-80

-60

-40

-20

0

20

40

60

80

1002

00

9 Q

1Q

32

01

0 Q

1Q

32

01

1 Q

1Q

32

01

2 Q

1Q

32

01

3 Q

1Q

32

01

4 Q

1Q

32

01

5 Q

1Q

32

01

6 Q

1Q

32

01

7 H

1 (

e.)

per cent


-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Commercial real estate

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

Q1

Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Small- and micro sized enterprises

WEA

KER

STR

ON

GER

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

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11

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20

12

Q1

Q3

20

13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Short term loans

-100

-80

-60

-40

-20

0

20

40

60

80

100

20

09

Q1

Q3

20

10

Q1

Q3

20

11

Q1

Q3

20

12

Q1

Q3

20

13

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Q3

20

14

Q1

Q3

20

15

Q1

Q3

20

16

Q1

Q3

20

17

H1

(e.

)

per cent

Long term loans

STR

ON

GER

WEA

KER

MAGYAR NEMZETI BANK


Chart 34 Factors contributing to corporations’ demand for loans based on banks’ perceptions

-100

-80

-60

-40

-20

0

20

40

60

80

100

Change in customerinventory financing

needs

Change in customeraccounts receivable

financing needs

Change in customerinvestment in plant or

equipment

Change in customer'sown liabilities

Change ofattractiveness of other

bank or non-bank creditsources

Change in the level ofinterest rates

per cent

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 H1 (e.)

Co

ntr

ibu

tin

g to

str

on

ger

dem

and

Co

ntr

ibu

tin

g to

wea

ker

dem

and

MAGYAR NEMZETI BANK


Chart 35 Changes in loan portfolio quality by sector

(net percentage balance of respondents reporting improvement/deterioration weighted by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Agr

icu

ltu

re, f

ore

stry

an

d f

ish

ery

Man

ufa

ctu

rin

g

Ener

gy, p

ub

lic s

ervi

ces

Co

nst

ruct

ion

Wh

ole

sale

an

dre

tail

trad

e, r

epai

r

Cat

erin

g se

rvic

es

Tran

spo

rt, s

tora

ge,

po

st a

nd

tel

com

m.

IT, c

om

mu

nic

atio

n

Fin

anci

al in

term

ed

iati

on

Rea

l est

ate

and

bu

sin

ess

serv

ices

per cent

2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 H1 (e.)

DETERIO

RATIO

NIM

PRO

VEM

EN

T

MAGYAR NEMZETI BANK


Chart 36 Credit availability (Willingness to lend) and credit conditions in the commercial real-estate segment (net

percentage balance of respondents reporting an increase/decrease and tightening/easing weighted by market

share)


Chart 37 Demand for loans in specific segments of the commercial real-estate market

(net percentage balance of respondents reporting an increase/decrease in demand weighted by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Credit availability 2016Q4

Credit availability(expected) 2017 H1 (e.)

Credit conditions 2016Q4

Credit conditions(expected) 2017 H1 (e.)

per cent

Residential Logistics Retail (shopping centres) Offices

INC

REA

SED

ECR

EASE

TIGH

TENIN

GLO

OSEN

ING

-100

-80

-60

-40

-20

0

20

40

60

80

100

Perceived demandin 2016 Q4

Anticipated demand for2017 H1 (e.)

per cent

Residential Logistics Retail (shopping centres) Offices

INCREASE

DECREASE

MAGYAR NEMZETI BANK


Chart 38 Developments in perceptions of risk associated with corporate loans based on answers provided on

default rate and loss given default (net percentage balance of respondents reporting increased/decreased

risk (weighted by market share)

Chart 39 Changes in the quality of the commercial real estate loan portfolio

(net percentage balance of respondents reporting improvement/deterioration weighted by market share)

-100

-80

-60

-40

-20

0

20

40

60

80

100

Default rate in 2016 Q4 Default rate forecast2017 H1 (e.)

Loss given defaultin 2016 Q4

Loss given defaultforecast 2017 H1 (e.)

per cent

Non-financial corporations Large-and medium-sized enterprises


DETER

IOR

ATIO

NIM

PR

OV

EMEN

T

-100

-80

-60

-40

-20

0

20

40

60

80

100

Commercial realestate

Residential Logistics Retail (shoppingcentres)

Offices

per cent

Portfolio quality 2016 Q4 Portfolio quality 2017 H1 (e.)

DETER

IOR

ATIO

NIM

PR

OV

EMEN

T

MAGYAR NEMZETI BANK


ANNEX 2: METHODOLOGICAL NOTES

In terms of methodology − starting from January 2010 − the survey consists of the standard questionnaire in each segment, and we might also ask ad hoc questions of current concerns related to the lending segment. The retrospective questions in the questionnaire refer to the previous quarter year (previous quarter in the past), (e.g. to 2016 Q4 in January 2017), whereas forward-looking questions contain projections for the upcoming half year (e.g. for 2017 Q1 and Q2 in January 2017), relative to the trends of the previous quarter year (previous half year in the past).

To indicate changes, the survey used the so-called net change indicator, expressed as a percentage of respondents. This indicator is calculated as follows: market share-weighted ratio of respondents projecting a change (tightening/increasing/strengthening) minus market share-weighted ratio of respondents projecting a change in the opposite direction (easing/decreasing/weakening).

The standard part of the questionnaire asked respondents for changes in willingness to lend (volume of loans), credit standards and credit/disbursement conditions, as well as changes in demand (observed in the last quarter and, as expected for the next half year, seasonally adjusted changes in new credit applications) and in portfolio quality as perceived by the respondent, and changes in the risk assessment of different sectors in the case of the corporate questionnaire. The survey applied a five-step scaling to assess changes in the willingness to lend, demand, standards/conditions, risk parameters, however on the charts we only show the direction, excluding magnitude:

• A rating of 1 reflects a considerable increase in demand and in willingness to lend, a considerable tightening in credit standards/credit conditions, a considerable increase in housing prices and risk parameters and, in the case of the risk assessment of sectors, a score of 1 indicates a considerable increase in risk perception relative to the half year preceding the survey, or relative to the current half year or for the upcoming half year in the case of a forecast.

• A rating of 3 indicates an unchanged assessment, both for the current half year and for the forecast pertaining to the upcoming half year.

• A rating of 5 reflects a considerable decrease in demand and in willingness to lend, a considerable loosening of credit standards/credit conditions, a considerable decline in housing prices and risk parameters and, in the case of the risk assessment of sectors, a rating of 5 indicates a significantly safer climate relative to the half year preceding the survey, or relative to the current half year or for the upcoming half year in the case of a forecast.

Ratings of 2 and 4 allow for an intermediate assessment between two extremes (e.g. demand increasing to some extent).

Keywords used for the purposes of the questionnaire are defined as follows:

Credit availability (willingness to lend) reflects the respondent’s intention to expand and increase its portfolio in the specific segment.

In terms of credit conditions,1 there is a distinction between price-related and non-price related factors. Non-price

related credit conditions (such as collateralisation requirements, loan covenants, maximum size of loans/credit lines, etc.) represent specific contractual terms; the bank will not disburse the loan unless these conditions are met. Regarding the non-price related factors, the survey queried respondents on items such as the spread between the interest rate level and the cost of funds, and risk premium.

1 As credit standards and credit conditions are interrelated concepts, we surveyed overall changes in credit conditions and standards, followed by

a separate query on individual credit conditions.

Chart 1 Outstanding amount of housing loans and …housing market Competitive situation with other...

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Transcript of Chart 1 Outstanding amount of housing loans and …housing market Competitive situation with other...