CEZ Group | CNB: Financial sector remains highly resistant to shocks

CNB: Financial sector remains highly resistant to shocks

31. 1. 2018

Czech financial sector maintains high resistance against negative shocks, but the resistance is not growing.

(CIANEWS, Jan 31) Czech financial sector maintains high resistance against negative shocks, but the resistance is not growing. This stems from the Czech National Bank’s (CNB) Financial Stability Risks and Indicators report. According to CNB, potential raising of yields from government bonds is not risky. Credit risk in the banking sector has probably reached its low, but risk perception and rating by banks may be too optimistic. CNB has noted that many institutions failed to comply with the stricter aggregate limit for LTV in Q2 2017, when the limit came into effect.