Work detail

Czech Banking in 1990 - 1996

Author: Mgr. Jan Chmelík
Year: 1997 - summer
Leaders: prof. Ing. Michal Mejstřík CSc.
Work type: Finance and Banking
Language: Czech
Pages: 110
Awards and prizes: Economics Foundation AwardM.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good masters diploma thesis
Abstract: The master thesis deals with the development of the Czech banking sector during seven years period since year 1990 and analyses this development.

The first chapter describes development of the Czech banking sector from year 1990 till the beginning of year 1997. The fundamental aim of the Czech banking sector transformation was reached. The created system of mutually competing universal banks significantly improved the allocation of the sources within the economy. Unfortunately the creation of the functional and standard capital market was by far less successful and thus the banking sector has been playing too dominant role in the sources allocation process. The problems of small Czech banks, which are playing insignificant role on the market now, were expensively solved by the end of year 1996 when the banking sector could be marked as a relatively stable from banks health point of view.

The second chapter analytically describes with the support of the antimonopoly policy instruments the process of de-concentration of the Czech banking sector and of its particular segments. Following the initial quick de-concentration of the banking sector the concentration stabilised since 1993 and it even increased in selected segments of the market during last two years. The stagnation of the market de-concentration is accompanied with the increased competition among banks and increased quality of the offered services and products.

The third chapter describes changes in the shareholders structures of the individual banks, quick increase of a number of new Czech private banks during the first half of 90s as well as cohesion of individual banks and continual important role of the state as the largest owner of the banks. At spring of 1997, the Czech banking sector is dominated by a group of financial institutions (KB, ČS, IPB, ČSOB, Group of Česká pojišťovna, Konsolidační banka and Union banka) which all are to a different extent (co)owned by the Czech state.

The fourth chapter compares individual types of banks operating in the Czech Republic. The fifth chapter characterises and analyses in details six largest Czech banks with a focus on theirs strengths and weaknesses. The special attention is paid to the group surrounding IPB and the analyses of the ownership cohesions within this group.

Downloadable: Diploma Thesis - Chmelík


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