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An Impact of Institutional Environment on the Czech Banking Sector Petr Budinský Vice-rector VŠFS Conference H uman Capital & F inancial M anagement Prague, September 2012. SOLUTION OF DEBT CRISIS. Political Union Fiscal Union Banking Union. ECB. Decrease of interest rates
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An Impact of Institutional Environment on the Czech Banking SectorPetr BudinskýVice-rector VŠFSConferenceHuman Capital& Financial ManagementPrague, September 2012
SOLUTION OF DEBT CRISIS • Political Union • Fiscal Union • Banking Union
ECB • Decrease of interest rates • LTRO 1 trln EUR • Unlimited buy-out of bonds • Banking union - 1 regulator - sharing risks
BANKING ASSETS in trln % of GDPEurozone 33 (EUR) 350CR 4,7 (CZK) 125
BANKING LOANS% of banking assets % of GDPEurozone33 124CR 44 57
BANKS • Worsening of loans • Holding of bonds • Losing deposits • Capital requirements • Fundings problems
DELEVERAGING+ … Restructuring of assets Capital increase- … Restricting new loans
BANKS BEHAVIOUR • Bonds purchases • Stricter conditions for granting of loans • Lower demand for loans