||The aim of my thesis is to show how has the Czech banking system dealt with the transformation process and what is its today’s performance compared to other European countries. At first, I describe the development of banking system in territory of present Czech Republic (or Czechoslovakia) from the time of First World War to present. At the end of the first chapter, I am concentrating on description of the banks, I am going to compare to other chosen European banks. I have got the data at disposal form the year of 1999 to 2005 that make comfortable way to cover up the post-transformation process (or let me say the period of modern banking). I have chosen three European countries to be compared. Two of them have very similar history to the Czech one, Poland and Hungary, and the other one, representing modern countries, which do not carry a communism burden, Austria. Subsequently, I have chosen two banks (from every chosen European country), that are closest to the Czech ones in the way of bank’s total assets (i.e. between 10 to 35 billion USD). Consequently, I am analyzing banks from the financial side and finally, I am comparing those banks firstly from the bank’s total performance point of view and at last, by the Risk index and probability of insolvency.