 Credit Crisis in View of Return on LoanLuboš Smrčka Ekonomika a Management, 2010, vol. 2010, issue 2 Abstract: The paper sums up various data from the Czech economy concerning the issue of the current so-called credit crisis, i.e. the situation when financial institutions are lending money to businesses only with a considerable amount of distrust and much more prudence than in the past. Based on specific figures, the author proves that the banks' unwillingness to lend stems especially from the state of demand in the local economy and among foreign customers, and from the fact that the ratio of default loans to the total number of loans has been increasing in the long term, threatening the stability of banks. Apart form other issues, however, the author sees as the key factor the decreasing gross value added to one crown of credit provided to businesses. Moreover, on the figures from the Czech Statistical Office, he proves that this process had started even before the outbreak of the crisis of 2007 to 2010. In conclusion, he considers the irresponsible growth of costs in businesses and investment into projects with poor return to be decisive reasons for the drop in gross value added. Keywords: úvěrová krize; hrubá přidaná hodnota; banky; Credit crisis; Gross value added; Banks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:prg:jnleam:v:2010:y:2010:i:2:id:93 Ordering information: This journal article can be ordered from Access Statistics for this article Ekonomika a Management is currently edited by Eva Kislingerová More articles in Ekonomika a Management from Prague University of Economics and Business Contact information at EDIRC. |
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