The Resolution Fund: Is behaviour of the contributing institutions affected by the applied methodology?
|Author:||Bc. Daniel Hykl|
|Year:||2020 - summer|
|Leaders:|| Mgr. Magda Pečená Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||The thesis provides theoretical analysis of the Resolution Fund contributions determination policy – the
contributions are calculated based on end of year data – and its effects on banks and the financial sector.
Several theoretical examples are used to demonstrate the problem of the top-down approach to
distribution of the sectoral contributions on the particular institutions. A hypothesis is drawn – do the
banks lower their reported liabilities as of end of the year to achieve decreased contributions? Total
liabilities of the 7 largest banks in the Czech Republic are analysed and theoretical end of year
developments of total liabilities of the banks under no optimisation condition are calculated. Basic
annual contributions of the banks are estimated and compared to implied contributions calculated from
the theoretical liabilities.