Czech Republic: Financial System Stability Assessment Update
IMF Staff Country Reports, July 17, 2012
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- Canonical URL
- Czech Republic: Financial System Stability Assessment Update
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Bibliographic details
- Published: July 17, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475506235.002
Overview
- This paper presents a financial system stability assessment update for the Czech Republic.
- The financial system is confronted with a number of growing risks.
- Owing to a high reliance of the Czech economy on exports to European Union (EU) countries, the main risk stems from negative developments in EU countries.
Key findings
- The results of stress tests show that Czech banks can withstand substantial shocks.
- The regulatory and supervisory framework for financial institutions is generally sound.
- Inadequate resources within the regulatory and supervisory framework are identified as a major weakness.
Stress testing and resilience
- Stress tests indicate Czech banks can withstand substantial shocks.
Regulatory and supervisory framework
- Framework assessment: generally sound.
- Major weakness: inadequate resources for regulatory and supervisory authorities.