Determinants of the Bank Run Sensitivity in Czechia

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F17%3A00010783" target="_blank" >RIV/47813059:19520/17:00010783 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Determinants of the Bank Run Sensitivity in Czechia
Original language description
The aim of this paper is to determine maximum volume of deposits than can be withdrawn from each individual bank from the Czech banking sector and to identify the determinants of their sensitivity to a bank run. The data cover the period from 2000 to 2014. Although bank liquidity, measured by the liquid asset ratio, decreased during the analyzed period, Czech banks were liquid enough and prepared for a potential bank run. Using panel data regression analysis, we tested seven bank-specific factors and seven macroeconomic factors. The sensitivity of Czech banks to a possible bank run is determined by bank profitability. Among the macroeconomic factors, the interest rate and unemployment rate are relevant. However, the most important factor is the level of bank liquidity: banks with a sufficient buffer of liquid assets are safer than other banks, particularly during periods of financial distress.
Czech name
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Czech description
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Project
<a href="/en/project/GA16-17796S" target="_blank" >GA16-17796S: Affiliation with financial conglomerate as a determinant of performance and risk of banks</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 9th International Conference on Currency, Banking and International Finance "Challenges for Financial Sector of CEE Countries in Overcoming Problems of Economic Integration in the EU"
ISBN
978-80-225-4362-0
ISSN
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e-ISSN
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Number of pages
7
Pages from-to
147-153
Publisher name
Ekonóm, University of Economics in Bratislava
Place of publication
Bratislava
Event location
Bratislava
Event date
Sep 20, 2016
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
000411851600019

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