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The role of household portfolio restructuring in financing of the general government

Author

Listed:
  • Zsuzsa Kékesi
  • Balázs Kóczián
  • Balázs Sisak

    (Magyar Nemzeti Bank)

Abstract

Following the crisis, up until the end of 2014, net financial savings of households’ had been gradually increasing, reflected also in the ever greater expansion in financial assets. Since the beginning of 2012, in the course of households’ portfolio allocations, securities have been gaining ground: first government securities, and later mutual funds. During 2013 portfolio restructuring started: households have started to use their savings previously accumulated in bank deposits as well for purchasing government securities and mutual funds. As a result of the above mentioned trends, financing of the general government by households has increased significantly, and according to most recent figures, it is considered to be high even when compared to other members of the European Union. In recent years the increase of household financing has been even more considerable if indirect financing – mutual funds, pension funds – is also taken into account. Present article analyses the impact of households’ savings on the financing structure of the general government in a descriptive way.

Suggested Citation

  • Zsuzsa Kékesi & Balázs Kóczián & Balázs Sisak, 2015. "The role of household portfolio restructuring in financing of the general government," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 14(1), pages 79-110.
    • Handle: RePEc:mnb:finrev:v:14:y:2015:i:1:p:79-110
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    References listed on IDEAS

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    More about this item

    Keywords

    savings; households; government securities; financing;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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