How to Identify Domestic Systematicaly Important Institutions (D-SIFI)
|Author:||Bc. Matěj Melichar|
|Year:||2014 - summer|
|Leaders:|| PhDr. Jakub Seidler Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The 2007 financial crisis has highlighted the problem of so-called “too-big-to-fail” financial
institutions. These institutions are so large, interconnected and complex that their failure can
cause significant distress in the financial system or even trigger a systemic crisis. In order to
address the systemic risk posed by these institutions it is first necessary to identify them. BCBS
has proposed a methodology to assess the systemic importance of global banks. This paper
presents a methodology for identification of Czech domestic systemically important banks. The
method is based on balance sheet indicators of banks. The assessment is using the data for years
2008-2012 and identifies four banks as systemically important for the Czech banking sector.