Deposits in the Czech Banking Sector: Bank Deposits and their Development in 90`s
|Author:||Mgr. Ilona Katzová|
|Year:||2002 - summer|
|Leaders:|| † prof. Ing. Karel Kouba DrSc.
|Work type:|| Finance and Banking
|Awards and prizes:||M.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good masters diploma thesis
|Abstract:||The paper explores the development of deposits in the Czech banking sector during 90ties. Three main hypotheses are analysed based on macroeconomic, institutional, social and other non-economic factors. The first hypothesis deals with the exceptionally high volume of deposits at the beginning of 90ties. This is explained mainly by the long tradition of the Czech banking sector, initial macroeconomic conditions and conservatism of Czech nation. Second hypothesis focuses on the crisis of the subsector of small Czech bank in mid 90ties and on the role of banking supervision, deposit insurance system and government in solving the crisis. The reaction of supervising bodies and government seems to be inadequate to the extent of the crisis, which did not apparently jeopardy the Czech banking sector as a whole. The author finds the reason of the government and central bank's reaction in the feeling of partial accountability for the situation. Third hypothesis deals with the consequences of the crisis to the Czech banking sector in the second half of 90ties, when temporal strengthening of the banking sector could have been observed. There were other strong factors influencing Czech banking sector such as macroeconomic development, development of non-banking financial services, world trends and new technologies in finance, ongoing consolidation and privatisation of Czech banking sector, etc. Even though the volume of deposits stayed quite stable during this period, these recent trends raise the competition and pressures on efficiency of individual banks within the Czech banking sector.