Categorising the Central Bank's Credit Incentive Programs by Targeting and Intensity

The global financial crisis that broke out in 2007–2008 substantively set back activity in the credit market. Several central banks reacted to this by implementing credit incentive programs. Based on the program parameters, our study evaluated 14 international and Hungarian credit incentive programs launched by central banks in terms of targeting and intensity (strength of incentives). After the outbreak of the crisis, there was a clear trend for credit incentive programs becoming increasingly targeted and highly incentivised, without any clear trends in terms of sizing. The shift from less targeted and less highly incentivised programs towards more targeted, higher-intensity ones was typical both internationally and within Hungary. The Hungarian credit incentive programs introduced after 2013 show extensive targeting and intensity levels, even on an international scale.