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Competition and performance in the Hungarian second pillar

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  • Impavido, Gregorio
  • Rocha, Roberto

Abstract

The performance of the Hungarian second pillar since inception has been mixed. This is partly due to a less than satisfactory support for the 1997 pension reform, conservative fund portfolio distributions, the hybrid nature of the mandatory pension fund system, the segmented nature of the market in terms of costs, and a less than aggressive commitment on the part of the Hungarian Financial Supervisory Authority to a low-cost, transparent, and competitive equilibrium. In the accumulation phase, the authorities would need to further promote transparency and comparability of information on costs and investment performance, facilitate migration to lower cost funds, and more generally promote competition. The regulatory framework of the payout phase needs to be overhauled before the first cohort of workers retires.

Suggested Citation

  • Impavido, Gregorio & Rocha, Roberto, 2006. "Competition and performance in the Hungarian second pillar," Policy Research Working Paper Series 3876, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3876
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    Cited by:

    1. Gregorio Impavido, 2008. "Efficiency and Performance of Bulgarian Private Pensions," IMF Working Papers 2008/268, International Monetary Fund.
    2. Meiram Zhandildin, 2015. "Pension System Reform in Emerging Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 7(1), pages 65-88, January.
    3. Ms. Hélène Poirson, 2007. "Financial Market Implications of India’s Pension Reform," IMF Working Papers 2007/085, International Monetary Fund.
    4. Heinz Rudolph & Hela Cheikhrouhou & Roberto Rocha & Craig Thorburn, 2007. "Financial Sector Dimensions of the Colombian Pension System," World Bank Publications - Books, The World Bank Group, number 6785.
    5. Andras Simonovits, 2009. "Hungarian Pension System and its Reform," CERS-IE WORKING PAPERS 0908, Institute of Economics, Centre for Economic and Regional Studies.

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    Keywords

    Investment and Investment Climate; Economic Theory&Research; Economic Stabilization; Financial Intermediation; Settlement of Investment Disputes;
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