State Aid to the Czech Banking Sector in the Context of Transition and EU Accession
|Author:||Mgr. Libor Čech|
|Year:||2004 - summer|
|Leaders:|| † Ing. Zdeněk Hrubý CSc.
|Work type:|| Finance and Banking
|Awards and prizes:||Josef Hlávka Award
M.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance and for an extraordinarily good masters diploma thesis
|Abstract:||The first part of this thesis is concerned with triggers, causes and resolution of the banking sector crisis as well as with international comparison of adopted solutions and current performance of the banking sector. The author has concluded that on the contrary to crises of banks in well-functioning market economies, where the reasons for the bank's losses are generally specific to each particular bank (and related to a large extent to its aggressive commercial and credit policy), the crisis in the Czech banking sector was caused mainly by factors not only specific to each bank, but specific also to the economy in transition.
In the second part, the author analyzes effects of aid measures on the level of competition in the banking sector. The analysis concludes that incurrence of adequate (i.e., not excessive) aid measures to overcome deficiencies presented in the first part of this thesis has been inevitable for the transition countries and in principle should not be viewed as state aid distorting competition in the financial market. On the contrary, such aid has contributed to creation of a level playing field allowing just competition between both domestic and foreign banking institutions. In addition, the author focuses on background, legal framework and outcome of the review of pre-accession aid measures by the European Commission within the framework of so-called interim procedure, which has been initiated in the context of accession of the Czech Republic into the European Union.
|Downloadable:|| Diploma Thesis - Čech