The Czech Banking Association’s (ČBA) research arm has published a telling study focusing on competition in the financial sector and how it contributes to the health of the economy as a whole. The study could hardly be timelier — the capability of national economies to succeed in the era of globalization and systematic strengthening is the cornerstone of efforts to lead the European Union out of the ongoing financial crisis.
The domestic counter-intelligence service BIS is looking to expand its powers in the area of combatting corporate crime and corruption in public tenders. In this regard, it is lobbying the government to amend laws on banking and taxation secrecy, the server Novinky.cz reports.
Czech National Bank (ČNB) stress tests show the domestic banking sector is resilient to potential adverse shocks — such as a deeper recession in the European Union due to the eurozone debt cirsis — thanks to good capitalization, profitability and balance sheet liquidity, the central bank said in a report on Tuesday.
Zdeněk Tůma has been named to an advisory committee which should propose what reforms to make to the EU's banking sector. The advisory group has been put together to advise interventionist French Commissioner Michel Barnier, although Tůma has not been noted in the past for favoring too much central or local regulatory measures.
Komerční banka, one of the big four Czech retail banks, has reported a net profit of Kč 7.041 billion for the third quarter of 2011, a 29.3% year-on-year drop. In Q3 Komerční banka wrote off 60%, or Kč 2.64 billion, of the value of its Greek bonds.
The latest Czech National Bank (ČNB) stress tests about how the banking sector would weather an economic crisis gives banks the all clear based on the high capital reserve cushion they have amassed. Even in a crisis sparked by debt-burdened euro-zone countries, banks' reserves would not fall below minimum levels, it says.
ING Bank Czech Republic saw a net profit of Kč 671 million in 2010, compared with a record Kč 925 million a year earlier. With the positive yearly revaluations of bond portfolios (in the amount of Kč 116 million) the net comprehensive income was Kč 787 million, down some 3 percent year-on-year.
Lawmakers claim that Act 254/2004 Col. — better known to the public as the “Money Laundering Act” — obliges for payments of €15,000 or more to be made by credit transfer so as to prevent money laundering and corruption. It is often said that such a law is a necessity in the Czech Republic, in particular, but is this really the case? Ultimately, John Q. Public will be paying for it while the banks will be raking in the fees, write Patrik Nacher and Aleš Rod.
German savings bank Ostsächsische Sparkasse Dresden (OSD) is now the front runner to take over the Czech division of Landesbank Baden-Württemberg (LBBW), which is up for sale after operating only a little more than two years on the Czech market, informed sources in Czech financial circles have told Czech Position.
The differences between the Czech economic situation and Ireland’s are vast, according to top level managers polled by Czech Position. There are some voices, however, that say the situation could in fact be likened to the problem in Greece and that there is a risk factor in the proposal for next year’s budget.