Frait, JanGersl, AdamSeidler, Jakub2012-03-192012-03-192011-08-01https://hdl.handle.net/10986/3533The Czech Republic had experienced a credit boom similar to those in other converging economies in the pre-crisis years. Nevertheless, the consequences of this credit boom were limited as was the impact of the global crisis on domestic financial institutions. This paper describes the developments in the Czech banking sector and explains how the tough macroeconomic environment in the Czech Republic acted as a strong tool of macroprudential policy. It concludes that although it is difficult to tame credit booms in small converging economies, a concerted set of microprudential and macroprudential measures, including monetary and fiscal ones, may ensure some success.CC BY 3.0 IGOAMOUNT OF CREDITAMOUNT OF LOANSARBITRAGEASSET PRICEASSET PRICESASSET QUALITYAUTONOMYBALANCE SHEETSBANK ASSETSBANK BALANCE SHEETSBANK CREDITBANK FOR INTERNATIONAL SETTLEMENTSBANK LENDINGBANK LOANSBANKING CRISESBANKING CRISISBANKING INSTITUTIONSBANKING SECTORBANKING SECTOR ASSETSBANKING SECTOR DEVELOPMENTSBANKING SERVICESBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBANKSBUSINESS CYCLECAPACITY CONSTRAINTSCAPITAL ADEQUACYCAPITAL INFLOWSCAPITAL REQUIREMENTSCAPITALIZATIONCDSCENTRAL BANKINGCENTRAL BANKSCOMMERCIAL BANKSCONSOLIDATIONCREDIT BOOMCREDIT BOOMSCREDIT EXPANSIONCREDIT GROWTHCREDIT LOSSESCREDIT QUALITYCREDIT RISKCREDIT SPREADSCREDIT SYSTEMCREDITORCURRENCY CRISESCURRENCY MISMATCHESCURRENT ACCOUNT DEFICITCURRENT ACCOUNT DEFICITSDEBTDEBT LEVELSDEBT RATIODEBT SERVICINGDEBT SERVICING COSTSDEBTSDEFAULT RATEDEFAULT RATESDEFICITSDEPOSITDEPOSITSDOMESTIC BANKDOMESTIC BANKINGDOMESTIC BANKING SECTORDOMESTIC BANKSDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC FINANCIAL INSTITUTIONSDOMESTIC INTEREST RATESDOMESTIC SAVINGSECONOMIC CONDITIONSECONOMIC DEVELOPMENTECONOMIC MODELEMERGING ECONOMIESEMERGING ECONOMYEMERGING MARKETEMERGING MARKET ECONOMYEMERGING MARKETSEUROPEAN CENTRAL BANKEXPORT REVENUESEXPORTERSEXPOSUREEXTERNAL FINANCINGEXTERNAL POSITIONFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTABILITYFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REGULATIONFINANCIAL RISKSFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STABILITY OBJECTIVEFINANCIAL STABILITY POLICIESFINANCIAL STRESSFINANCIAL STRUCTUREFINANCIAL SYSTEMFIXED EXCHANGE RATEFIXED EXCHANGE RATESFLOATING EXCHANGE RATEFOREIGN BANKSFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN CURRENCY LENDINGFOREIGN CURRENCY LOANSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN EXCHANGE RISKFOREIGN FUNDSFOREIGN INTERESTFOREIGN INTEREST RATESGLOBALIZATIONGOVERNMENT DEBTGOVERNMENT GUARANTEESGROSS DOMESTIC PRODUCTGROWTH RATESHOLDINGSHOUSEHOLD INCOMEHOUSINGINDEBTED COUNTRIESINDEBTEDNESSINFLATIONINFLATIONARY PRESSURESINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCIAL STATISTICSINTERNATIONAL INVESTORSINVENTORYINVESTMENT PROJECTSLABOR UNIONSLENDERLENDER OF LAST RESORTLENDING INSTITUTIONSLEVEL OF DEBTLEVEL OF RISKLIQUID ASSETSLIQUIDITYLIQUIDITY RISKLOANLOAN DEMANDLOAN PORTFOLIOLOAN PORTFOLIOSLOCAL BANKSLOCAL BUSINESSLOCAL MARKETSLOOSE MONETARY POLICYMACROECONOMIC DATAMACROECONOMIC ENVIRONMENTMACROECONOMIC POLICIESMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMACROECONOMIC VARIABLESMARKET LIQUIDITYMARKET MAKERMARKET SUPERVISIONMARKET_SUPERVISIONMATURITYMATURITY TRANSFORMATIONSMONETARY CONTROLMONETARY FUNDMONETARY POLICIESMONETARY POLICYMONEY SUPPLYMORTGAGESNONPERFORMING LOANSNPLOPEN ECONOMIESOPEN ECONOMYOUTPUT LOSSESPOLICY RESPONSEPORTFOLIOPOST-CRISIS PERIODPRIVATE BANKINGPRIVATE CREDITPRIVATE LOANSPRIVATE SECTOR CREDITPRIVATIZATIONPROBLEM LOANSPROFITABILITYPRUDENTIAL REGULATIONPRUDENTIAL SUPERVISIONPURCHASING POWERREAL EXCHANGE RATEREAL INTERESTREAL INTEREST RATERECESSIONRESERVERESERVE REQUIREMENTSRISK EXPOSURESSALES OF ASSETSSAVINGSSECURITIESSHORT-TERM BONDSSHORT-TERM INTEREST RATESSTATE BANKSSTOCK MARKETSTOCKSSTRATEGIC INVESTORSSUBSIDIARIESSUPERVISION OF BANKSSUPERVISORY AGENCIESSUPERVISORY AUTHORITYSYSTEMIC RISKTAXTAXATIONTIER 1 CAPITALTRANSPORTWAGESWARRANTSWITHDRAWALWorld Bank10.1596/1813-9450-5771