Czech banks and insurance companies remain able to withstand the worsening economic conditions. This follows from the results of the Czech National Bank's (ČNB) supervisory stress tests. The capital ratio of the tested part of the banking sector reached 20.2% at the  end of 2022 on a consolidated level and would decrease to 17.5% in the case of an adverse scenario. Despite this, the overall capital adequacy ratio remained above the regulatory minimum of 8%. The results of the insurance companies' test also showed that the sector  was adequately capitalised at the end of 2022. The overall solvency  ratio would be 156% after the application of shocks for both market and insurance risks (regulatory minimum 100%).

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