The Latest Volume of PFQ is published

2019-01-25 10:38   |   Author: Gergely Szabolcs
Last updated: 2019-02-13 08:21

The latest volume of PFQ focuses on Economy and Cash Flow, which topics is presented through three studies. Our readers may find out from our current issue what is the connection between the central bank base rate, the retail deposits, the credit transfer and the seigniorage, what kind of trends prevail in the Hungarian population's payment behaviours, and what kind of new opportunities appear in expanding the local financial services. Further studies analyse such topics which are in the focus of public interest, such as the integrity situation of publicly owned business associations, the validity of value-based consumer behaviour models in terms of financial awareness generation Z and Y, the challenges of strengthening the domestic small enterprises, the trends of the securities post-trading infrastructure, and the link between the non-debt tax shileds and the investment opportunities.


Focus - Economy and Cash Flow


In his essay Ernő Huszti higlights how and with what efficiency the central bank and the business banking activities are connected under the conditions of the two-level bank system. The author reveals the changes occurred in the ownership of financial institutions created novel relationships, with not only domestic but also foreign banks. The competition for clients has become natural, their relationship with the central bank strengthened and changed. These connections can be demonstrated through the special relations between interest, cash, deposits, the budget and the central bank. According to the author in the next years, the financial government will have to develop a toolkit that is able to ensure the appropriate compatibility of deposit creation, savings, lending and interest policy in the long run.


The main purpose of the study of Tamás Végső - Ágnes Illés Belházyné - Anikó Bódi-Schuert is to explore the payment patterns and cash usage behaviour of the Hungarian public and examine the effects of age, income, education and other socio-demographic factors on these habits. In this regard, the authors focus especially on the public's general attitude towards cash and their subjective payment preferences. Base on the findings the Hungarian population is clearly pro-cash. Not only a significant proportion of the population uses cash only out of necessity due to the deficiencies of the payment infrastructure, but they are outnumbered by those who would not want to give up banknotes and coins in the future, for a variety of, typically, subjective reasons.


The paper of Csaba Lakócai - Zoltán Gál - Zsolt Kovács Sándor examines local complementary currencies, a type of economic money substitute, as one of the local responses to financial globalisation. The most recent wave of local currencies implies that their operation is independent of the processes of financial globalisation, i.e. financialization, and this is substantiated by the examples found both in developed and developing countries. This doesn't mean that local currencies have similar features in different social and political environments; alternative financial services meant to decrease financial exclusion, which include local currencies, have different mechanisms of operation in regions with different levels of wealth underline the authors.





From the essay of Gyula Pulay and Anikó Lucza our readers may get to know more about the integrity survey of publicly owned business association conducted in 2017, and its results. Survey data of the State Audit Office of Hungary show that the degree of corruption risks at these companies depends essentially on objective factors. On the other hand, the strength of the integrity control systems put in place to prevent these risks primarily depends on the owner and/or management of the business association, i.e. on subjective factors. The business associations with the best level of integrity stood out from the rest by carrying out systemic risk analyses and risk management, which also included surveying corruption risks.


Mónika Garai-Fodor and Ágnes Csiszárik-Kocsir investigate in their analyses whether theories on value-based consumer behaviour are also relevant with regard to money-related decisions. Based on the results obtained, the authors found that the values and mindset of the selected generations exhibit differences compared to previous generations, and because of their malleable value judgements, their purchase and consumer choices, including financial decisions, can be influenced by appropriate means. When characterising the individual segments, it became clear in which groups financial knowledge needs to be improved, and the members of which groups may serve as reference people and opinion leaders in the promotion of conscious spending.



László Árva - Magdolna Csath - András Giday analyse the problem, how the small enterprises (SME-s) of semi-periphery countries can survive in the shadow of the transnational companies (TNCs). In this regard the authors examined 'neo-globalization', and were mainly focusing on wage levels. They found that local small enterprises generally are not able to increase their prices and their wages, but on the other hand, transnational companies can easily pay higher wages for their workers, as transnational companies are realizing extra profits due to their specific business model. In this globalized model, TNCs are interested to maintain income differences between periphery and centrum regions, that is the reason why the government should embrace small and medium companies, which are producing for the local markets.



Mobeen Ur Rehman and his co-authors aim to provide empirical evidence of cross-sectional relationship among accounting policy changes, investment opportunities, accounting policy sensitive non-debt tax shields, financial leverage, size and profitability of the firms listed on Pakistan stock exchange thus providing implications regarding size and leverage hypotheses. Results of the study suggest that these variables share significant relationship and influence managerial discretion in changing the depreciation and inventory valuation policies in response to variations in such dimensions.


Dániel Béres in his essay highlights that following the 2008 financial crisis the importance of regulatory institutions has increased significantly since they have fundamental role in ensuring safe and sound financial markets and crossborder capital flows. A fundamental change in the role of central counterparty (CCP) and of the central securities deposit (CSD) was driven by the need of increasing market efficiency by securitization and capital flows. Both institutions was developed by market needs, but later on, all around the world strict regulatory regimes are formulated regarding CCPs and CSDs. As a consequence trade repositories (TR) are established in order to store OTC derivative transaction data. The author in his article concludes that in the future, due to the technological development, the post-trading landscape may change. One direction may be to introduce real spot markets (without settlement cycle) and the other one may be to implement distributed ledger technology to replace the current post-trading framework.


Get to know our articles published in 2018!


The full text studies are available and downloadable by clicking on the following links.


2018/3 - Sustainability and Trust

2018/2 - Focus on Public Finances

2018/1 - The Theory and Practice of Financial Consolidation



Erzsébet Németh PhD, Senior Editor

Szabolcs Gergely auditor