THE BANKING AND FINANCIAL MARKET

Since the establishment of the two-tier bank system fifty years ago, the Hungarian commercial banking sector has not only formed in its institutions but it has even strengthened. The consolidation period followed by the stabilization period has meant both the improvement of the credit society and supervisory control, and even the formation of the more cautious credit processes, which was followed by the western investors in the banking sector. The fusions of the financial institutions in the privatised Hungarian banking sector were followed by the concentration of capital and centralization launching good bases for the further stabilization in the Hungarian financial sector. On the one hand the advanced state level has become one of the key factors of the economic growth in Hungary, on the other hand the control of the participants in the financial and capital market meaning the suppression of the grey and black market. The significant participants of this process are the adequately working credit societies, which can promote the economic growth by their basic activities and the most effective outlay of the sources they had gained and their role in the financing of the national debt is getting more and more important. In the scope of the harmonization the control system of the national bank control follows the system formed by the EU. In terms of the financial types of the institutions and the financial service activities the European model has a significant role in the Hungarian experience