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Potential Attitudes Solving the Problems of Banking Stability

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Author Info
Lib?na Èernohorsk? () (University of Pardubice, Faculty of Economics and Administration)
Jan Èernohorsk? () (University of Pardubice, Faculty of Economics and Administration)
Abstract

The aim of this paper is to introduce the evaluation of the Czech banking sector and banking stability based on discriminant analysis and cluster. The model is devised on the basis of financial indicators analysis of selected banking institutions based on the Czech Republic in the period from 1995 until 2005. The banks were divided into two groups – the group of operating banks and the group of bankrupted banks. This division was done according to the real development of the Czech banking sector based on data provided by the Czech National Bank. All banks providing services in the Czech Republic in the period of 1995-2005 were analysed in the model except for building societies (due to their different activities compared to commercial banks) and foreign banks’ subsidiaries (strongly influenced by their foreign owners). Data for calculation of financial indicators were taken from bank’s financial statements.

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Publisher Info
Paper provided by School of Economics and Business Administration, Tallinn University of Technology in its series Working Papers with number 164.

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Length: 16
Date of creation: 2007
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Publication status: Published in Working Papers in Economics.School of Economics and Business Administration,Tallinn University of Technology (TUTWPE), Pages 25-40
Handle: RePEc:ttu:wpaper:164

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Related research
Keywords: bank; stability; financial indicators; discriminant analysis; cluster analysis;

Find related papers by JEL classification:
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

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