Apparent characteristics of the Hungarian banking market such as large profits and high margins suggest weak competitive pressures. Weak competition in turn, may reduce efficiency in a lack of pressures to converge to marginal cost and to stimulate managerial efforts to reduce X-inefficiency.
This working paper is part of the OECD's 2004 Economic Survey for Hungary and is one of a series of reviews on competition issues across OECD member countries.
English, , 619kb
A major challenge of economic transition in central and eastern European countries is creating the institutional framework crucial to market operation. OECD Economic Studies No. 25.