Macroeconomic impacts of capital adequacy
AbstractThe paper reviews capital requirements in some developed countries and in the Czech Republic. Capital requirements in the Czech Republic was introduced in 1994. Capital ratio of the group of foreign banks permanently exceeds 13 % while the group of large and small banks has problems. There is excessive volume of credits in the Czech banking sector. Many developing countries and emerging markets decided to follow inflationary solution of bad credits, but not Czech Republic. Due to the lowering of inflation (or even deflation) in the Czech Republic bad credits have not been solved yet. It seems that they will be transferred into some state agency. The reduction of bank credits seems necessary in the near future. In this sense credit crunch can be seen as useful for long-term prosperity of the Czech economy. Capital requirements introduced by the Czech National Bank support desirable credit crunch.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Economics, Prague in its journal Politická ekonomie.
Volume (Year): 1999 (1999)
Issue (Month): 6 ()
Postal: Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vaclav Subrta).
If references are entirely missing, you can add them using this form.