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Profitabilty and costs of banking products in the Czech market
Šútorová, Barbora ; Teplý, Petr (advisor) ; Janský, Petr (referee)
This bachelor thesis is aimed to be an accurate and detailed analysis of profitability and costs of bank deposits and loans for individual clients in the Czech market with possibility to make a comparison of the advantages of the Czech banks' products. Moreover, in general, the thesis tries to refute or confirm the criticism about the magnitude of bank fees in the Czech Republic. The principle of the analysis is based on a comparative tool designed in MS Excel containing defined parameters in the form of actual fees and interest rates and the appropriate formulas of financial mathematics, thanks to which, it is able to calculate the return on the deposit or total costs of loan products. The final amount is calculated for specific flexibly entered inputs such as the amount of the deposit or loan repayment period. This tool is an electronic attachment to this work.
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The Impact of Basel III on European Banks
Šútorová, Barbora ; Teplý, Petr (advisor) ; Lešanovská, Jitka (referee)
The aim of this thesis is to take a closer look on how the stricter capital requirements defined in Basel III framework will influence European banks from a complex point of view - lending rates and volumes of provided loans, profitability, risk taking and market value of banks. Our analysis employing simultaneous equations and panel data models on exp post data on almost 600 banks operating in the EU in period 2005-2011 reports following results: (1) Those banks that will be forced to effectively increase their common equity ratio (CE/RWA) will reflect a one percentage point increase in this ratio into higher lending rates by 18.8 basis points. (2) This should, in turn, lead to a modest impact on the volume of provided loans, i.e. as a result of an increase of CE/RWA to 9.5 % (the case of the strictest scenario), the loan volumes are expected to be lowered by 2% from the current volume. (3) Our study further reports that higher capital requirements will cause a decrease in banks' profitability accompanied by a drop in risk taking. Banks increasing their CE/RWA by one percentage point are expected to experience a decrease in their profitability (measured by ROAA) by 0.122 percentage points. (4) The above mentioned effects were identified as rather negative signals for equity owners, which should be...
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The Impact of Basel III on European Banks
Šútorová, Barbora ; Teplý, Petr (advisor) ; Lešanovská, Jitka (referee)
The aim of this thesis is to take a closer look on how the stricter capital requirements defined in the Basel III framework will influence European banks from a complex point of view - lending rates and volumes of provided loans, profitability, risk taking and market value of banks. Our analysis employing simultaneous equations and panel data models on exp post data on almost 600 banks operating in the EU in the 2005-2011 period reports following results: (1) Those banks that will be forced to effectively increase their common equity ratio (CE/RWA) will reflect a one percentage point increase in this ratio into higher lending rates by 18.8 basis points. (2) This should, in turn, lead to a modest impact on the volume of provided loans, i.e. as a result of an increase of CE/RWA to 9.5 % (the case of the strictest scenario), the loan volumes are expected to be lowered by 2% from the current volume. (3) Our study further reports that higher capital requirements will cause a decrease in banks' profitability accompanied by a drop in risk taking. Banks increasing their CE/RWA by one percentage point are expected to experience a decrease in their profitability (measured by ROAA) by 0.174 percentage points. (4) The above mentioned effects were identified as rather negative signals for equity owners, which should be...
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The Impact of Basel III on European Banks
Šútorová, Barbora ; Teplý, Petr (advisor) ; Lešanovská, Jitka (referee)
The aim of this thesis is to take a closer look on how the stricter capital requirements defined in Basel III framework will influence European banks from a complex point of view - lending rates and volumes of provided loans, profitability, risk taking and market value of banks. Our analysis employing simultaneous equations and panel data models on exp post data on almost 600 banks operating in the EU in period 2005-2011 reports following results: (1) Those banks that will be forced to effectively increase their common equity ratio (CE/RWA) will reflect a one percentage point increase in this ratio into higher lending rates by 18.8 basis points. (2) This should, in turn, lead to a modest impact on the volume of provided loans, i.e. as a result of an increase of CE/RWA to 9.5 % (the case of the strictest scenario), the loan volumes are expected to be lowered by 2% from the current volume. (3) Our study further reports that higher capital requirements will cause a decrease in banks' profitability accompanied by a drop in risk taking. Banks increasing their CE/RWA by one percentage point are expected to experience a decrease in their profitability (measured by ROAA) by 0.122 percentage points. (4) The above mentioned effects were identified as rather negative signals for equity owners, which should be...
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Profitabilty and costs of banking products in the Czech market
Šútorová, Barbora ; Janský, Petr (referee) ; Teplý, Petr (advisor)
This bachelor thesis is aimed to be an accurate and detailed analysis of profitability and costs of bank deposits and loans for individual clients in the Czech market with possibility to make a comparison of the advantages of the Czech banks' products. Moreover, in general, the thesis tries to refute or confirm the criticism about the magnitude of bank fees in the Czech Republic. The principle of the analysis is based on a comparative tool designed in MS Excel containing defined parameters in the form of actual fees and interest rates and the appropriate formulas of financial mathematics, thanks to which, it is able to calculate the return on the deposit or total costs of loan products. The final amount is calculated for specific flexibly entered inputs such as the amount of the deposit or loan repayment period. This tool is an electronic attachment to this work.
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