Banking sector of the Czech Republic: development in crisis period and present

Bankovní sektor České republiky: vývoj v krizovém období a současnost

Zbyněk Revenda

Český finanční a účetní časopis, 2017, vol. 2017, issue 3, 39-55

Abstract: The author analyzes the development of the Czech banking sector over the past ten years, focusing on selected assets and liabilities to assess the liquidity and solvency situation and development. Banks did not have any more serious problems even in the years of economic downturn 2009 and 2012-2013, they did not need assistance from the central bank or from the state. A potential and paradoxical problem may be the high level of free reserves at the central bank. It is a risk-free and highly liquid asset, but also a low-yielding asset. This also leads to virtually nil state of bank lending from the central bank. The main reason for the dramatic growth of reserves was foreign exchange intervention against the koruna. Banks as a whole are also solvent, the average capital adequacy considerably exceeds the level of minimum requirements. Severe financial crises are not connected with the Czech banking system in the analyzed period.

Keywords: Bank assets; Bank liabilities; Bank Reserves; Capital adequacy; Crisis; Liquidity; Solvency; Aktiva bank; Pasiva bank; Rezervy bank; Kapitálová přiměřenost; Krize; likvidita; Solventnost (search for similar items in EconPapers)
JEL-codes: E5 G21 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.18267/j.cfuc.500

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