Analysis Of Total Corporate Loans Of OTP Bank

Abstract

The two-tier banking system in 2017 was 30 years old in Hungary. More than 10 years after the economic crisis, it is definitely useful to conduct an analysis of a leading bank and its corporate clientele.

Our research are conducted with quarterly data from 2011 to release our analysis from potentially data-distorting data after the 2008 world crisis. The current study covers the period between 2011 and 2016, and applies linear correlation analysis to examine the effect of changes in loan policy on total outstanding corporate loans.

Micro-businesses, small businesses, medium-size businesses and large businesses are analysed separately. The former two categories react to all changes in economic conditions and policies more sensitively than larger corporations in any time period.

The analysis covered the correlation between total corporate deposits and the national base rate, and showed that they are reversely proportional. The statistics also examined the relationship between total loans outstanding, and changes in interest rates and terms and conditions. It is again revealed that micro and small businesses show stronger correlation than medium-sized and large corporations. It is also proven that interest rates have a stronger impact than terms and conditions, showing that the corporate sector is very susceptible to changes in interest rates.