Work detail

Transformation costs of the banking sector consolidation in

Author: Mgr. Petr Čuda
Year: 2004 - summer
Leaders: † doc. Ing. Jiří Havel CSc.
Work type: Finance and Banking
Language: Czech
Pages: 120
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 objective of my thesis is to analyse and specify costs connected to the transformation and consolidation of the banking sector in the Czech Republic. High credit activitity was typical for companies during the initial period of the transition process. In particular, companies used loans to finance their capital needs and investment activities. A stable and healthy banking sector was a core factor for the future economic development of the Czech Republic during the transition process. The State was therefore directly involved in the support of the banking sector.
The direct costs incurred by the State were those expenses connected to the operations of transformation institutions or the State itself to improve the situation of individual banks or to mitigate the losses of their creditors. Typical operations of the State to help the banking sector included recapitalization, work-out of assets, provision of guarantees and pay-off of bank depositors over the limit set by law. The thesis analyses the total costs which were connected to State operations and instruments connected with helping the banks.
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