IDEAS home Printed from
   My bibliography  Save this book chapter

The Impact of Insolvency Law on Financial Stability

In: CNB Financial Stability Report 2005


  • Tomas Rydl


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 facilitates rapid exit of problem entities from the economic system and reduces the impacts of the losses incurred by insolvents on other businesses, households and financial institutions. Insolvency law therefore has an important role in terms of credit and systemic risk and directly affects the conditions for financial stability in the Czech economy. Moreover, it is a highly topical issue, because after many years of preparation the legislative process of adopting the new insolvency act is nearing an end.

Suggested Citation

  • Tomas Rydl, 2006. "The Impact of Insolvency Law on Financial Stability," Occasional Publications - Chapters in Edited Volumes,in: CNB Financial Stability Report 2005, chapter 0, pages 93-101 Czech National Bank, Research Department.
  • Handle: RePEc:cnb:ocpubc:fsr05/3

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cnb:ocpubc:fsr05/3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Babecky). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.