CBA: Czech banks are well-prepared for crisis

Published: 17.06.2020 Related countries:  New Zealand New Zealand, Australia Australia

They are much stronger and better prepared than they were e.g. 2008 and this allows banks to support the economy recovery.

Czech banks have been conservative in the last two decades, systematically creating large capital buffers. They are now much stronger and better prepared than they were e.g. in 2008, when the last big crisis broke out. Pavel Štěpánek, the executive director of the Czech Banking Association (CBA), said in response to the results of stress tests published by the Czech National Bank (CNB) that this allows banks to support the economic recovery. He added that a further reduction of the countercyclical capital buffer by 0.5% is the right step at the right time and creates additional space for banks both to provide loans to support companies' working capital and their investments.

Source: Daily news | ČIA news

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