Skip to main content

Short description of the project

The special management and financing situation of local governments and the rising risk of this sector need continuous attention in the course of positioning banking services. By our year-end survey in 2007 it became possible to estimate the market potential of this segment. Our detailed analysis, which was based on a survey including a representative sample by settlement type and county, we produced information in the following topics: 

  • For which purposes and in which (loans, bond issues, etc?) do local authorities intend to obtain external financial resources?
  • What kind of bank market potential does the local government sector have?
  • What kind of management structure do local governments have? What is typical for the management of local governments, which are in better or worse situation (by territorial unit and by settlement type)?
  • In which cases can the theory of financial sustainability be questioned?
  • What are the expectations and preferences of local governments towards financial institutions?
  • What types of other banking services can be demanded by local governments? 

    Based on the results of the report financial institutions can elaborate their business plan for this sector more accurately. 

    Research methodology 

    In the research we obtained information through primary data collection on the preferences and management characteristics of Hungary?s all local governments (about 3150), the results are helpful for banks in positioning their services and assessing their risks in this specific market segment. 

    Relying on the results of the empirical survey a better view can be obtained on long-term trends. The representative sample enables us to carry out comparisons based on the territorial divisions of banks (for example regarding differences in risk). 

  • Elemzés szerzője