The MNB defines the scope of special purpose entities in conjunction with the HCSO. For the compilation of the SPE register, we use the available indicators that capture the main characteristic of these enterprises, i.e. that they predominantly operate abroad and have minimum links to the domestic economy. The following criteria are used in practice for the identification of resident SPEs: In their balance sheets, the ratio of non financial assets is negligible as compared to financial assets, with the latter consisting mainly of equity, long-term loans and securities. Their turnover derives primarily from export revenue and does not exceed HUF 500 million annually. The number of staff tends to be very low (1-3 persons). They typically have high registered capital (capital reserve), which they lend immediately or they purchase equity participations abroad or establish branches abroad. They have no subsidiary in Hungary. If, however, the SPE criteria are satisfied both for a resident enterprise and its resident subsidiary, i.e. their operations dominantly relate to the rest of the world, the two enterprises together are considered to be an SPE. Their material cost is negligible. The name of the enterprise refers to the off-shore nature of the activity.