This article takes as its central theme the development of insolvency law in relation to financial stability. While insolvency law does not constitute direct regulation of the financial market, it significantly affects the market and the way its participants behave. Quality insolvency law...

This article sets out to discuss instruments for reducing procyclical bank lending behaviour. Special attention is given to how much the regulatory framework contributes to the procyclicality of the financial system. The main subject of the article is the dynamic provisioning regime currently...

This article focuses on the macroeconomic default rate model in the Czech economy. The aim is to produce a model allowing us to estimate the expected proportion of bad loans in the total loan portfolio of banks in response to the evolution of key macroeconomic indicators. The proportion of bad...

This article presents a financial scoring model estimated on Czech corporate accounting data. Seven financial indicators capable of explaining business failure at a 1-year prediction horizon are identified. Using the model estimated in this way, an aggregate indicator of the creditworthiness of...

This article illustrates the nature and significance of operational risk with regard to financial stability, using specific examples of major operational risk events in the Czech Republic and in other countries, and identifies the impacts of the newly introduced capital regulation of operational...

This article presents the results of an analysis of data on individual bank loans of non-financial corporations in the Czech Republic taken from the CNB’s Central Register of Credits. It focuses on the question of how firms obtain financing from domestic banks. The results show that the...

This article deals with the structure and evolution of tender offers, takeover prices and the effects of tender offer announcements in the Czech Republic in 2001-2005. Semi-strong form efficiency is examined by means of the traditional event study methodology. Based on the results it is...

This article offers empirical evidence on the evolution of competition in the banking sector and its relationship to the cost efficiency of banks in the Czech Republic between 1994 and 2005. First, we measured the level and evolution of competition and cost efficiency. Competition was measured...

The purpose of the paper is to introduce the new “g3†structural model of the Czech National Bank and illustrate how it is used for forecasting and policy analysis. As from January 2007 the model was regularly used for shadowing official forecasts, and in July 2008 it became the core...

The Czech Republic is facing a population ageing phenomenon. In addition, its demographic structure is expected to change dramatically over the next 50 years. We apply a stylised overlapping generation model in order to analyse the potential effects of the expected demographic changes on...