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Master's thesis - Natural Catastrophes and Financial Development Pavla Mikul'ıkov'a Academic year 2022/2023 Natural disasters affect lives of many people every year. Using a panel dataset of 214 countries from 1970 to 2021, this thesis analyses the impact of disasters on financial development, namely on depth, efficiency, access, and sta- bility, using fixed effects and system GMM estimators. The main findings imply that depth and stability are negatively affected by disasters, and the impact is more pronounced for lower-income countries. On the other hand, efficiency and access provide no consistent results. There is no type of disasters, e.g., biologi- cal or geophysical, that would have a significant impact on all types of financial development. The effect probably varies due to the different characteristics of disaster types. 1

This thesis analyses the role of non-bank financial intermediaries in the Czech financial market, with the emphasis on comparison of efficiencies of banks and non-bank financial corporations engaged in lending. This paper addresses their influence on the financial market both in the global and in the Czech environ- ment. The evaluation of the performance of the individual parts of the Czech financial sector is conducted using the Data Envelopment Analysis, which yields specific efficiency scores. Based on these values, aggregated data on banks and non-bank financial corporations engaged in lending are compared against each other and over the time period from 2013 to 2021.

This dissertation thesis consists of three chapters devoted to analyzing residential and commercial real estate prices, assessing risks related to residential real estate exposures for financial stability, and calibrating borrower-based macroprudential measures to address those risks. Each chapter presents a general approach(es), which can be used - after certain adjustments - for similar analyses across countries and application to the Czech Republic or the CEE countries. In Chapter 1, we first show the application of a standard inverted demand model of the equilibrium house prices, which we extend to take into account the population ageing in the Czech Republic with potential impact on the effective demand for owner- occupied housing. Then, we present an alternative model that considers possible amplification between house prices, mortgage credit, and the real economy and investigates whether non-linearities in the short-term house price dynamic are present in the Czech Republic. By this, we extend the scarce empirical literature on non-linearities in house prices. Next, we abstract from economic determinants of house prices, which may lead to biased results if procyclical, and analyze the interaction between asking and transaction prices as a kind of revealed expectations of buyers and sellers...

The dramatic increase in popularity of cryptocurrencies like Bitcoin has motivated central banks to research central bank digital currencies (CBDC). The key central bank R-CBDC experiments are reviewed. It is found that central banks of advanced economies like the Federal Reserve, European Central Bank and Swiss National Bank are relatively less motivated to issue R-CBDC. This is because current retail payment systems and settlements are already fast and efficient and the advantages of R-CBDC may not be as large as initially expected. Financial inclusion and need for traceable payment systems is less attractive in advanced economies and central banks would lose credibility if CBDC were implemented unsuccessfully. A scenario analysis is used to explore the implications of R-CBDC on financial stability and monetary policy. The results show that CBDC implementation in all scenarios is expected to positively impact financial stability and monetary policy. Results from the scenario analysis are more optimistic than the literature and urges central banks to continue their research. Finally, it is found that ECB's ability to issue CBDC is uncertain. The risks to traditional monetary policy tools and banking system should encourage both to become more efficient and focus on the needs of users.

This thesis aims to describe stress testing in the Czech banking sector focusing on the most significant banking risk, which is credit risk. The thesis examines the difference between regulatory and internal stress testing, compares their assumptions, outcome quality and usability. It deals with the regulation of stress tests, which banks must fulfil. Further, it uses the current Covid-19 crisis as a test of whether the adverse scenarios used are sufficiently severe to cover the risks for and impacts on the actual negative development of the economy. This analysis assesses the Czech banking sector's readiness and resilience and includes the reactions of banks and the Czech authorities to increasing risks.

This thesis examines the effectiveness of macroprudential policies on reducing housing price growth in the international database of 56 countries with the use of GMM and fixed effects between 2000 and 2017. The macroprudential index is added to the dynamic panel data model where the housing price index is regressed on housing price determinants as the economic growth or unemployment rate. The analysis is also conducted on the sample of countries with a higher market share of owners with a mortgage as there is a higher opportunity to control the housing market through the credit channel. Nevertheless, results show that we do not have enough evidence to state that macroprudential policies curb house price booms. Contrarily, the effect seems to work in the opposite direction which is probably caused by a reverse causality between the growth of real estate prices and the implementation of macroprudential tools. The debt-to-income restriction is the only tool that decreases housing price growth according to the fixed effects model. Detailed counterfactual analysis of the Czech market proposes only a slight impact of the loan-to-value measure on the apartment price development according to one out of four predictions. 1

This dissertation consists of three research papers dealing with selected issues relevant for central banks after the global financial crisis. The post-crisis world has seen a significant strengthening of the role of central banks with regard to the financial system as well as the real economy. Correspondingly, agendas of some central bankers have grown substantially, encompassing among others monetary policy, financial stability (macro- and microprudential policies) as well as resolution mechanisms. This dissertation thesis reflects the broad focus of some contemporary central banks in three original research articles that concern current unexplored issues for monetary policy and financial stability in the European Union, the Czech Republic, and the United States, potentially bringing policy implications for the relevant authorities. The first article analyzes inflation convergence in the whole European Union (EU) over 1999-2017 and provides comprehensive and robust evidence that the process of inflation convergence among the countries of the EU was not permanently disrupted during the global financial crisis, the European sovereign debt crisis, or the period of zero lower bound interest rates. Specifically, the convergence process did not noticeably weaken after the crisis and the occurrence of...

Článek se zaměřuje na problematiku ring-fencingu v oblasti makroobezřetnostní politiky a jeho důsledky pro vývoj finanční integrace v EU. Makroobezřetnostní ring-fencing chápe jako omezení pohybu regulatorního kapitálu v rámci přeshraničních bankovních skupin v důsledku zavedení makroobezřetnostních opatření. Identifikujeme dva hlavní faktory, které stojí za pozorovanou heterogenitou nastavení makroobezřetnostní politiky s potenciálem k ring-fencingu – projevy úvěrového rizika a podíl aktiv bank v zahraničním vlastnictví související s postupným náběhem kapitálových rezerv. Heterogenitu rizikových vah by mělo částečně omezit přijetí regulatorního balíčku CRD V/CRR II a dalších obezřetnostních pojistek (např. požadavku na pákový poměr nebo výstupový práh). Na druhou stranu, nový regulatorní balíček obsahuje limity pro nastavení strukturálních rezerv, které mohou vést k situaci, kdy regulace zabraňuje nastavení makroobezřetnostních nástrojů v rozsahu, který by odpovídal úrovni systémového rizika. This paper aims to focus on capital-related macroprudential policies in the context of recent policy discussions on the removal of barriers to the mobility of capital and liquidity of cross-border banks in the European Union (EU). This study first discusses the link between financial stability and internal resource mobility of cross-border banks. Then, it examines past heterogeneity in structural capital buffers as key macroprudential capital instruments applied in the EU and relate them to costs of policy action, degree of foreign penetration and membership in the Banking Union. Observed phase-in patterns of structural capital buffers in the EU are broadly consistent with costs of policy action, degree of foreign penetration and membership in the Banking Union as potential factors. The process of financial integration could be further enhanced through reduced uncertainty in the application of macroprudential policies that constrain capital mobility of cross-border banks. This paper anchors macroprudential policies into a wider discussion on the mechanism and implications of ring-fencing in the EU over time. It discusses two policy areas, macroprudential policies and proposals for deeper financial integration, that share the same financial stability objective but tend to emphasize different implications of the mobility of capital and liquidity of cross-border banks in the EU. The study provides a discussion of potential implications of the recent adoption of the CRRII/CRDV legislation for future heterogeneity of macroprudential policies in the EU.

The topic of this diploma thesis is to measure and investigate the clarity of Financial stability reports from 27 European central banks. Using unbalanced panel data from 2004 to 2017 we found out variables that determine the level of clarity of Financial stability reports. Clarity indices are calculated by Flesch-Kincaid readability tests. Based on our results, we claim that the clarity of the Financial stability report is affected by the level of independence of the central bank and by non-housing macroprudential policy index. Furthermore, the clarity of Financial stability reports changes among years and especially during the financial crisis. According to spatial models, the distance between central banks really matters in the terms of the clarity of Financial stability reports.

This dissertation consists of four empirical papers analysing and discussing central bank policies in the post-crisis period. After the global financial crisis central bankers and other regulators have faced many new challenges, including a prolonged period of acommodative monetary policy, side effects of monetary policy easing on financial stability and interaction of macroprudential, microprudential and monetary policy. On top of that, policy makers must deal with uncertainty surrounding the transmission and the effectiveness of newly introduced macroprudential measures. The empirical analyses focus primarily on the Czech Republic and its banking sector, with an exception of the first essay. Using data for the Czech Republic and five euro area countries, the first essay shows that monetary tightening has a negative impact on the credit-to-GDP ratio and banks' capital-to-asset ratio, while these effects have strengthened considerably since mid-2011. This supports the view that accommodative monetary policy contributes to a build- up of financial vulnerabilities, i.e. it boosts the credit cycle. The second essay assesses the transmission of higher additional capital requirements stemming from capital buffers and Pillar 2 add-ons on banks' capital ratio, capital surplus and implicit risk weights. The results...

ROSIPAL, F. Financial analysis of chosen accounting unit. Bachelor thesis. Brno: Mendel University, 2018. Theoretical part contains brief history of financial analysis, users, sources of data used and methods to elaborate one. Practical part consists of application of theory and financial analysis of TON a.s. is executed. Horizontal analysis describes changes in financial statements over time while vertical analysis interprets asset and financial composition. Using ratio indicators are reviewed various areas of company such as indebtedness, rentability or liquidity. Bankruptcy models monitor overall company situation. In conclusion, several possible measures are offered to ameliorate insecure areas.

The subject of this work is to evaluate the efficiency of an investment project in an agricultural company. The intended investment is the construction of a biogas station. Two investment options are analysed. Because the company has a possibility to ask for drawing a subsidy from the Program of the countryside development, the first option is without drawing a subsidy, and the second option is with a subsidy. Evaluation of investment efficiency is carried out by static and dynamic methods. Then the impact of the project on the financial stability is rated using financial analysis. Based on performed calculations, though the option with the subsidy generates better results, it is detected that both variants are effective, and both reinforce stability of the company

The diploma thesis deals with an increasing demand for real estate loans, which support the increase of prices on the housing market. As a consequence of this, systemic risk grows, which causes that financial stability is unstable. By means of regressive analysis of panel data we try to find out the efficacy of macro-prudential tolls on increasing demand for real estate loans. Increase of real estate loans was chosen as a described factor, as well as macro-prudential tools and macro-economic indicators. The analysed data in the research come from the first quarter of 2006 until the fourth quarter of 2017. Time series are covered quar-terly. Eight countries of the European union were chosen as a sample for the analysis.

This thesis investigates the impact of foreign currency lending on financial stability for the case of Balkans, CEE and Balkans and CEE together. Such investigation has been carried out by identifying the impact of foreign currency lending across 3 main channels, which are: 1) households, 2) non-financial corporations, and 3) central government. This thesis was able to prove the foreign currency lending relevance, significance, main impact, and remarkable heterogeneity characterizing the Balkans and CEE samples. With respect to each of the subsamples and the full sample, the results can be summarized in 3 main points. For the case of Balkans, the financial instability has been identified to be transmitted through the household and government channels. Regarding the CEE, the dynamics are completely different as household channel provides mixed evidence, while the non-financial corporation one serves as the main transmission channel. When investigating the full sample, it has been pointed out that the prevailing dynamics reveal the non-financial corporation and government channels as the ones with the largest contribution to financial instability. JEL Classification C33, C36, F34, G20, G21, G32 Keywords Financial stability, foreign currency lending, household, non-financial corporation, central...

This study provides an empirical analysis of Shadow banking as a factor influencing cross- border financial flows. It builds upon emerging literature on Shadow banking and empirical literature on global imbalances and global financial flows. The aim of the thesis is to test three hypotheses, which relate global financial flows to lending, change in cross-border bank liabilities, and shadow banking, respectively. The second and third hypotheses are tested on gross capital flows, which, in contrast to net flows, better reflect financing activities. The results suggest that Shadow banking activities are related to higher gross capital flows in periods, when this sector is growing. These flows, however, tend to dry up when Shadow banking activities level off or decline. Among other important factors is the output growth differential and global risk aversion. JEL Classification E44, G20, G23, F32, F34, F21, F65 Keywords Shadow Banking, Global Imbalances, Capital Flows, Financial Stability Author's e-mail tomas.vaclavicek@gmail.com Supervisor's e-mail petr.teply@fsv.cuni.cz

In reaction on existence of economic cycles, the period of economic growth is changed with the economic recession, which can grow in the crisis eventually. In such a case, the task of economic policy is to direct the economy in the right direction, back to the boom. The thesis focuses on monetary policy and its ability to achieve this task. The aim of the thesis is to analyze the influence of foreign exchange interventions used in the period of 2013-2017 on the restoration of financial and (macro)economic stability of the Czech Republic. For this purpose, time series of indices describing the stability, the financial stress index and the economic stress index are constructed. A comparative analysis proves that the financial and (macro)economic situation in the Czech Republic has started to stabilize shortly before the unilateral exchange rate commitment to the euro and the impact of foreign exchange interventions cannot be certainly confirmed.

After the recent world financial crisis, macroprudential policy tools have started to play an important role in maintaining financial stability. In many countries, the tools have been extensively used only in recent years and their effectiveness is often difficult to assess. Using an index as a proxy for policy tools is one of ways to measure their impact. In this thesis, a new index capturing, in contrast with other studies, also an intensity factor, is constructed. Results are mostly in accordance with economic intuition and existing studies and suggest that indices constructed in an equivalent way can help to understand the impact of policies on changes in housing prices and credit volumes. JEL Classification F12, F21, F23, H25, H71, H87 Keywords macroprudential policy, systemic risk, house prices growth, credit growth Author's e-mail Lucie.Wdowyczynova@hotmail.com Supervisor's e-mail Simona.Malovana@gmail.com

This bachelor thesis deals with evaluation of financial intermediation and its influence on Irish and Icelandic economy. For this purpose, the following indicators of financial intermediation have been defined: financial depth, access to finance, effectiveness and stability. Their dependency and influence on the indicator of macroeconomic environment are examined by means of correlation and regression analysis. The thesis is also concerned with characteristics of macroeconomic and banking environment, economic recovery evaluation of both countries and their comparison. Keywords

The diploma thesis deals with stress testing as a specific tool which is used by European Banking Association for banking sector financial stability assessment. The main aim is to provide reader with analysis of EBA stress testing. Both the EBA methodology and 2016 results are analyzed in second part. Due to high costs spend on stress testing process I consider practical usage from the bank point of view as very important. This issue is discussed in fourth part of this thesis.

With the aim of supporting the hypothesis that financial law regulation is significantly influenced by both the environment (economy) in which it exists and its development, the authors consider a countercyclical capital buffer as a particular example of macroprudential instrument. Pozn. autorů: Jedná se článek, který vyšel již v roce 2016 v časopisu Sovreměnnoje pravo, Moskva, Novyj inděks, 2016, 1991-6027 (viz zde: https://is.muni.cz/auth/publication/1355539/cs?deuco=12547?). Tentokrát editor sborníku upravil název článku. Z důvodu opakované publikace neuplatňujeme RIV. Ve snaze potvrzení či vyvrácení hypotézy, že finančněprávní regulace je ovlivněna jak prostředím, ve kterém existuje (ekonomickou), tak jeho vývojem, autoři zkoumali proticyklickou kapitálovou rezervu jako nástroj makroobezřetnostní politiky. With the aim of supporting the hypothesis that financial law regulation is significantly influenced by both the environment (economy) in which it exists and its development, the authors consider a countercyclical capital buffer as a particular example of macroprudential instrument.

The introduction of negative interest rates, as an additional tool of unconventional monetary policy in recent years, leads to many, yet largely polarized debates about the implications of the unconventional monetary policy of central banks. The main reason for their introduction in some economies, namely the threat of deflation, is also questioned, as well as the negative side effects of this instrument on financial stability and economic growth, and finally, their limited scope is under scrutiny. Due to the still insufficient research in this field, the aim of the diploma thesis is to evaluate the concerns and the main long-term risks and impacts of the monetary policy using negative interest rates in the context of deflation threats. The analysis of available data confirms both the concerns about the negative effects of negative interest rates on the banking sector, the recovery process of public finances, the possible rise of a price bubble on the financial markets and real estate markets, or on the possibility of excessive risk taking, and on the other hand draws attention to the direct dependence between negative impacts and the duration of monetary policy using negative interest rates.

The bachelor thesis is focused on the topic of credit union sector of the Czech Republic. The theoretical part introduces the historical development of the sector along with the legislative changes. The empirical part follows an analysis of the current situation with an emphasis on the relevant indicators of financial health. The findings point to a deviation from the original principles and the introduction of profitability orientation, which leads to increased risk of credit union market. In response to the sector crisis, an amendment of Act was adopted in 2014, opening up the question of the future of individual market participants. The thesis introduces 3 basic scenarios of the future development - the bankruptcy, the continuation of the activity as a credit union or transformation into a bank.

This bachelor thesis deals with mortgage loans and risks of these instruments for financial stability. In the first part are defined mortgage loans and there is showed current situation on mortgage market. The second part explains systemic risk and financial stability. There is also analysed present Czech national bank´s policy in mortgage loans sphere and a new law. The last part contains research of factors which affect providing mortgages and estimation of final impact on financial stability. The conclusion summarizes obtained knowledge and tries to predict future state on mortgage market and real estate market.

The submitted master thesis is focused on the analysis of the financial condition municipality called Vsetín. Master thesis is divided into two parts. First part is based on theory which should explain issues to reader. The analysis of financial condition of Vsetín is made in second part of master thesis. On the grounds of the ana-lysis is financial condition evaluated and solution for another regional development suggested. Analysis of investment projects is also made in practical part. Impacts which have an important effects on regional development are formulated by author based on familiarity with this territory.

Makroobezřetnostní politika je dynamicky se rozvjející oblastí činnosti centrálních bank. Zejména po tzv. finanční krizi z roku 2008 lze sledovat snahy o prohloubení makroobezřetnostní regulace a dohledu, přičemž do dnešního dne probíhají diskuze o možných nástrojích makroobezřetnostní politiky. V tomto příspěvku autor uvažuje o roli limitů LTV/LTI jako nástrojch makroobezřetnostní politiky. Makroobezřetnostní politika je dynamicky se rozvjející oblastí činnosti centrálních bank. Zejména po tzv. finanční krizi z roku 2008 lze sledovat snahy o prohloubení makroobezřetnostní regulace a dohledu, přičemž do dnešního dne probíhají diskuze o možných nástrojích makroobezřetnostní politiky. V tomto příspěvku autor uvažuje o roli limitů LTV/LTI jako nástrojch makroobezřetnostní politiky. Macroprudential policy is a rapidly developing area of the central banks’ activities. Following the so-called financial crises of 2008, we can identify general efforts to deepen the macroprudential regulation and supervision. These talks often aim at shaping possible instruments of macroprudential policy. In this paper, the author considers the role of LTV/LTI limits as macroprudential tools.

This master's thesis is focused on the issues of stress testing in the context of financial stability. It consists of two major parts. The first part deals with methodology of general stress tests with special regard to stressed indicators and relevant risks. In the second part, the difficulties and shortcomings of general stress tests are analysed with respect to the dynamic expansion of financial instruments and markets. A special attention is paid to integrate liquidity risk and contagion risk into the current stress testing framework. Furthermore, the alternative instruments for increasing the complexity of banks financial soundness analysis are presented. It can be said that the system of financial stability analysis before the crisis was not sufficient because it did not reflect on all risk exposures. The main contribution of this thesis is the organized presentation of possible solutions which would help to enhance the quality of stress testing outputs and to a certain extent unify these outputs as well.

Kralicek´s Quick test is one of the well-known financial diagnostic tests in Europe. This model estimates the financial health of the company using the financial analysis tools with comparison with the created evaluation scale. The model was not created based on the sample of real companies and thus the author (even nobody later) has not tested complexly its informative value. That is why the quantification of informative ability of this model was stated using the tested sample of 1504 Czech companies. Even the model was not created using any statistic method (multiple discriminant analysis, logit analysis, decision trees, support vector machines, neural networks, etc.) it was found that its informative value is comparable to models based on empiric data (77.59% with the variation of one degree and up to 71.43% at the prediction of distress). Kralickův Q-test je jeden z nejznámějších finančních diagnostických testů v Evropě. Tento model odhaduje finanční zdraví podniku za použití nástrojů finanční analýzy a porovnání s vytvořenou hodnotící škálou. Tento model nebyl vytvořen na základě vzorku reálných podniků a proto autor netestoval jeho informativní hodnotu. To je důvodem proč byla provedena kvantifikace informativní schopnosti tohoto modelu za využití testovacího vzorku 1504 českých podniků. Přestože model nebyl vytvořen za využití statistických metod (multidiskriminační analýza, logit analýza, rozhodovací stromy, neuronové sítě, atd.), bylo zjištěno, že informační hodnota je srovnatelná s modely založenými na empirických datech (77.59 % při variantě odchylky 1 stupně a 71,43 % při predikci úpadku).

The thesis focuses on banking regulation and on the nexus between financial sovereign crises. After illustrating the main mechanisms on the recent financial crisis, we construct several multi-agent network models of a financial system for testing its stability under different parameters. In the first part, we focus on the rationale for banking regulation and we describe its development including the recently introduced Basel III measures. The main conclusion of this part is that regulation is to a large extent influenced by the banks and it does not always secure financial system stability. In the second part, we build an agent-based model which enables us to simulate the impacts of various types of negative shocks given various settings of the banking system and the regulatory environment, including the capital and liquidity measures. Our simulations show firstly that sufficient capital buffers are crucial for systemic stability, secondly that the discretionary measures have little effect once a crisis breaks out and thirdly that liquidity measures are a relevant regulatory tool. In the third part, the model is extended so that it allows for testing effects of state support on systemic stability is tested with various parameter settings in Monte Carlo simulations and for testing of feedback loops in which...

The object of this bachelor thesis is the evaluation of the financial situation of the company TOS VARNSDORF a.s. through the financial analysis. This thesis consists of two part: methodical one and practical one. In the methodical part, there are determined methods and techniques of financial analysis, which are applied on the selected company in the practical part. The end of this thesis is donated to additional analysis and complex evaluation of the company situation in the analyzed period (2011-2014).

This thesis studies the interaction between monetary and macroprudential policy using a DSGE model with real and financial frictions under government and financial shock scenarios. Countercyclical capital requirements are used as a macroprudential policy tool combined with a Taylor rule for monetary policy. In the case of the government shock, our findings indicate that policies' coordination reduces the volatility of the output vis-à-vis a "monetary policy only" regime. Analysis of financial shocks indicates that monetary policy alone can suffice to ensure financial stability. Lastly, welfare analysis suggests there is no optimal policy combination for all agents and highlights a redistributive effect of both shocks, showing that policy that is beneficial for one group of agents can decrease welfare for another. JEL Classification E44, E52, E61 Keywords monetary policy, macroprudential policy, capital requirements, financial stability Author's e-mail kateryna.kireichenko@gmail.com Supervisor's e-mail martina.jasova@fsv.cuni.cz

An increasing trend of using macroprudential instrument, caps on loan-to-value (LTV) ratio, requires a full understanding of how the instrument works in practice. As the empirical research is still scant, this thesis attempts to contribute with a new evidence on LTV effectiveness in context of six developed economies, namely Netherlands, Sweden, Ireland, Hungary, Latvia and Lithuania. To achieve this objective we analyse the impact of caps on LTV on credit growth, mortgage credit-to- GDP ratio and price growth. LTV limits are not a harmonised measure and its national-level implementation includes numerous specificities that can hinder cross-country comparisons. As a result, this thesis proposes a construction of LTV index reflecting specific aspects of the measure. Using the LTV Index we confirmed a slowdown of credit, mortgage and price growth. JEL Classification E44, E51, E52, E58, G21 Key words caps on loan-to-value ratio, maximum LTV ratio, macroprudential policy, credit-related instruments, LTV Index, house price growth, credit growth, financial stability.

The thesis deals with the interaction of monetary and macroprudential policy, or with the compatibility of the objectives of these policies in the Czech Republic. The main attention is given to the use of interest rate instruments for the purpose of achieving financial stability during the accumulation phase of cyclical dimension of systemic risk. For this purpose the crucial item is the relationship of financial and price stability in the economy. On the Czech economy data is therefore tested the relationship between credit activity and asset prices, to be subsequently quantified the relationship between the prices of selected assets and consumer prices. The model results open the door to greater use of industrial producer price index for the coordination of monetary and macroprudential policy. The thesis for the same reason also recommends continuing research into the development of the general price level during the financial cycle.

The purpose of this thesis is to provide an overview of risk and vulnerabilities for financial stability of the European Insurance sector. The methods and principles of risk assessment are examined, as well as their application for the insurance sector. The current macroeconomic situation and its impact on insurers' financial stability is described. Downward changes of interest rates are identified as the biggest current risk. This results from a system-wide stress test conducted by EIOPA (European Insurance and Occupational Pensions Authority), analysis of sensitivities published by several big European Insurers published on a yearly basis and finally from an econometric analysis of the relationship between market data and changes in macroeconomic variables. Keywords financial stability, stress testing, insurance sector, insurance risks

The paper surveys the systém of definitions and key concepts used in the EU financial services legislation. In a previous paper (2013), the author reviewed the European Commission´s "Cross-sectoral Study on Terminology as Devined in the EU Financial Services Legislation" and presented his recommendation on how the study may be extended. In this paper, the autor supported the original results, and extended his analysis. Not only did he focus on complexity of the EU financial services terminology, but he also pointed out the issue of legal language and translation of the financial services legislation. "This is a targeted publication on the one topic (Financial Law). It has been requested for inclusion in WOS." Autor ve svém článku zkoumá systém definic a klíčových pojmů užívaných v legislativě EU týkající se finančních služeb. Ve svém předchozím článku (2013) autor zkoumal studii Evropské komise nazvanou "Cross-sectoral Study on Terminology as Defined in the EU Financial Services Legislation" a představil svá doporučení, jak by tato studie mohla být prohloubena. V tomto článku autor rozšířil svá předchozí zjištění a prohloubil svoji analýzu. Vedle terminologie evropské legislativy týkající se finančních služeb se soustředil i na problematiku právního jazyka a překladů zkoumané oblasti legislativy. "Jedná se o zacílenou publikaci na jedno téma (finacial law). Bylo požádáno na zařazení do WOS."

At the end of the 90s the Czech credit union sector passed through the crisis what caused a number of amendments to the Act No. 87/1995 Coll., on Credit Unions. The last important adjustment to the Act on Credit Unions was an amendment of 2014. This bachelor thesis analyzes the current situation of credit union sector and the impact of changes in the legislative framework on the stability of the sector. The credit union sector accounts for only a small fraction of the Czech financial market, although it has developed favorably in recent years. This development was suspended by an amendment to the Act on Credit Unions of 2014, however stricter rules and a number of restrictions led to the strengthening of financial stability of the credit union sector. One of the consequences of the amendment is forthcoming transformation of the two largest credit unions into banks.

Financial Stability Transparency and Interest Rates Petr Pařízek Abstract This paper examines the relationship between financial stability transparency and nominal interest rates on a panel data with more than 50 countries in years 2000 to 2010, controlling for macroeconomic conditions. We investi- gate the same relationship using monetary policy transparency, we compare the results and based on the existing literature we check for non-linear ef- fects of transparency. Moreover, we examine how this relationship changes in financially good and bad times in terms of financial stress. We find nega- tive relationship between both financial stability and monetary policy trans- parency and short-term interest rates. Especially in the case of monetary policy transparency our results suggest non-linear relationship and the exis- tence of an intermediate optimal level of transparency. For financially good and bad times our findings are miscellaneous, some in accordance and some in contradiction with the literature. Generally, our results suggest that the effect of financial stability transparency on short-term interest rates is weaker than the effect of monetary policy transparency. For the long-term interest rates, we find no evidence of the effect of financial stability nor monetary policy transparency. Examining the data in...

The central issue of this thesis is investigating the eventuality of systemic break- downs in the international financial system through examining systemic depen- dence between bank and insurance sectors. Standard models of systemic risk often use correlation of stock returns to evaluate the magnitude of intercon- nectedness between financial institutions. One of the main drawbacks of this approach is that it is oriented towards observations occurring along the central part of the distribution and it does not capture the dependence structure of outlying observations. To account for that, we use methodology which builds on the Extreme Value Theory and is solely focused on capturing dependence in extremes. The analysis is performed using the data on stock prices of the EU largest banks and insurance companies. We study dependencies in the pre- crisis and post-crisis period. The objective is to discover which sector poses a higher systemic threat to the international financial stability. Also, we try to find empirical evidence about an increase in interconnections in recent post- crisis years. We find that in both examined periods systemic dependence in the banking sector is higher than in the insurance sector. Our results also in- dicate that extremal interconnections in the respective sectors increased,...

This thesis studies interconnections between macroeconomic environment and non-performing loans ratio (NPL) of banking loans provided to households in the Czech Republic in years 2005-2014. This analysis serves as tool for macroprudential policy to detect potential risks before negative consequences occur. The thesis examines mutual relations between households' non-performing loans ratio and variables capturing macroeconomic environment such as GDP growth, unemployment rate, CPI, interest rate and exchange rate. For purposes of this analysis, vector autoregressive approach and vector error correction model are applied. Based on impulse response analysis, most of expected relations are confirmed. Generally, favorable macroeconomic conditions increase payback capacity of households and reduce share of non-performing loans. According to forecast variance decomposition, increase in unemployment rate is the most serious threat for financial stability of the country from the perspective of non-performing rate increase. JEL Classification C32, C52, E21, G21 Keywords Households, indebtedness, financial stability, non-performing loans, Czech Republic, VAR, VECM Author's e-mail h.kroupa@seznam.cz Supervisor's e-mail seidler@email.cz

This bachelor's thesis is focused on financial analysis of the company Sapeli and it compares financial health between 2008 and 2012. The thesis is divided into four parts - introduction, theoretical part, practical part and conclusion. Introduction contains basic information about the work. The used methods and practices of financial analysis are summarized in the methodological section. This section is followed by the practical part, which contains calculated and commented ratio indicators and evaluation of value models and bankruptcy models. In conclusion of this bachelor's thesis are summed up results of financial analysis and proposed recommendations.

This thesis focuses on the link between financial system and sovereign debt crises through sovereign support to banks on one hand and banks' exposures to weak sovereigns on the other. After illustrating the main relationships on the recent financial crisis, we construct an agent-based network model of an artificial financial system allowing us to analyse the effects of state support on systemic stability and the feedback loops of risk transfer back into the financial system. First, the model is tested with various parameter settings in Monte Carlo simulations and second, it is calibrated to the real world data using a unique dataset put together from various sources. Our analyses yield the following key results: Firstly, in the short term, all the support measures improve the systemic stability. Secondly, in the longer run, the effects of state support depend on several parameters but still there are settings in which it significantly mitigates the systemic crisis. Finally, there are differences among the effects of the different types of support measures.

We analyze systemic risk of banks in countries of the so-called Visegrad Group (V4). Particularly, we focus on the relationship between a foreign mother and its local subsidiary which we compare to the relationship between subsidiaries in a given V4 country. We find that the systemic risk between two subsidiaries is higher than that between a mother and the respective subsidiary. In our analysis, we employ a technique stemming from a nonparametric multivariate Extreme Value Theory which is distribution free. Thus, our results are robust to heavy tails. Keywords Extreme value theory, systemic risk, financial stability, Visegrad Group, mother-subsidiary re- altionship Author's e-mail tomas.fiala@gjn.cz Supervisor's e-mail boril.sopov@gmail.com

This thesis deals with the stress testing of banks in Czech Republic and the EU. The first part discusses the financial stability. Attention is paid mainly to different opinions of financial institutions and other experts. The first part includes the financial stability assessment tools of two major financial institutions that deal with financial stability (IMF and ECB). The second part is devoted to one the specific assessment tool for financial stability - stress testing. Stress testing part targets to include the latest theoretical knowledge that are related to stress testing. The third part deals with the stress testing of the banking sector in the Czech Republic and examines the evolution of stress scenarios and methods of stress tests, which are the responsibility of CNB. The fourth part analyzes in detail the stress scenarios and the results of stress tests of the banking sector in the Czech Republic. The last part of the thesis is devoted to the analysis of stress tests of the EU banking sector.

This thesis deals with stress testing of the banking sector. Stress tests are a set of analytical tools used to test the resilience and financial stability of the banking sector. At the beginning of the work financial stability and systemic risk impact not only in the form of sys-temically important financial institutions are discussed. Followed by a chapter on stress tests, which describes historic development of stress testing approaches to testing of individual banking risks and their implementation in the form of stress testing. Stress testing methodo-logy is described primarily from the perspective of the Czech National Bank, the importance of banking regulation and supervision in Basel III is also presented. In the final chapter of the thesis there are commented results of Czech National Bank's stress tests, and EU wide stress tests 2014, launched in cooperation with European Banking Authority, European Central Bank and the European Systemic Risk Board.

This paper examines models of supervision and regulation over the financial market and their impact on volatility of interest rates according to monetary policy changes. Its goal is to judge if some of these models aren't less effective and cause higher volatility and if the assumption of market stability is provided. It looks into monetary policy changes and their impact on financial market, interest rates and their development in time of these changes. It analyzes correlation of monetary policy and financial market and gives characteristics of each of regulation models. Using the method of graphical analysis, this paper compares reactions of short- and longterm interest rates (Treasury bills and 10years government yields) in relevant countries during monetary change applications. It examines also official offered rate and real interbank rate and its' spreads. As indicator of financial market stress is used Libor-OIS spread. It evaluates the influence of models used in different countries in each given situation.