Czech Republic: Technical Note on Stress Testing the Banking Sector

July 17, 2012

Summary

This technical note summarizes stress tests undertaken for the Czech banking system as part of the Financial Sector Assessment Program (FSAP) Update. The tests were tailored to capture the specificities of the Czech banking system, characterized by a high share of foreign-owned banks. The program addressed current market developments and medium-term structural trends. All banks were assessed against solvency, liquidity, and contagion risks. The solvency tests revealed that the Czech banking system is robust even against substantial shocks on a standalone basis.

Subject: Banking, Basel III, Commercial banks, Credit, Financial institutions, Financial regulation and supervision, Financial sector policy and analysis, Money, National accounts, Personal income, Stress testing

Keywords: bank assets, bank datum, bank stress, banking system, Basel III, capitalization buffer, Commercial banks, CR, Credit, Czech bank, Europe, ISCR, liquidity position, maturity mismatch, Personal income, risk management framework, Stress testing

Pages:
44
Volume:
2012
DOI:
https://doi.org/10.5089/9781475506204.002
Issue:
174
Series:
Country Report No. 2012/174
Stock No:
1CZEEA2012004
ISBN:
9781475506204
ISSN:
1934-7685

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