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Effects of LTV, DTI and DSTI ratios on retail mortgage market. Evidence from the Czech Republic
Mičková, Anna ; Pečená, Magda (advisor) ; Hanus, Luboš (referee)
The thesis analyses the effects of credit-related borrower-based macroprudential measures - loan-to-value (LTV), debt-to-income (DTI) and debt service-to-income (DSTI) ratios - on retail mortgage market in the Czech Republic. These lending instruments, which target mainly borrowers and restrict the amount of money borrowed relative to the value of underlying collateral (LTV) or client's disposable income (DTI, DSTI), represent a non-negligible part of macroprudential policy. This entry barrier should act in a preventive manner to protect borrowers from taking high-amount and high-risk mortgages and eventually curb excessive private sector leverage. After the introduction and implementation of limits in the Czech Republic, the supply of loans with risky parameters declined, the share of non-performing mortgage loans decreased, and the rise in house price index decelerated. In 2019, the volume of new mortgage loans declined by 13.6 % year-over-year compared to the previous year and the spiral between increasing credit financing of property purchases and rising property prices slightly weakened.
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An alternative view on Czech banking sector's riskiness
Kubeš, Jan ; Teplý, Petr (advisor) ; Troch, Tomáš (referee)
Riskiness of Czech banking sector is subject of interest of this thesis. Since the beginning of 21st century, there is moderately growing number of banks and their overall profitability expressed in absolute values is increasing. Ratio of non-performing loans to total loans is also displaying optimistic values. Four indicators of riskiness are studied through data about Czech banks from 2008 to 2015. These indicators are: z-score, leverage ratio, RWA density and ratio of non- performing loans to total loans. Rather low correlations among these indicators are found, the highest correlation (0,670) is between leverage ratio and RWA density, on the other hand the lowest one (0,093) is between z-score and NPL ratio. In aggregate form are three of the indicators displaying stable trend to lower riskiness in 2008-2015 period, the same can be stated about NPL ratio in 2010-2015 period. Then is regression analysis employing fixed effects estimation and random effects estimation used, with the aim to identify determinants of the four indicators. Size of banks expressed in logarithm of total assets is significant in only one model with RWA density on the place of dependent variable. This significance is at 10 per cent level and corresponding coefficient is negative. In contrary, growth of assets and dummy...
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Consumer credit market development in the Czech Republic
Mrázek, Matěj ; Blahová, Naděžda (advisor) ; Brada, Jaroslav (referee)
Bachelor thesis maps the development of banking and nonbanking consumer credits in the Czech Republic since its formation to the end of the year 2011. It tracks particularly the changes of the loan volume, the interest rates and the bank charges. It also compares currently available loan offers and maps the actual situation. The aim of the work is to help to the consumers in orientation of the relevant market and to serve to the interested persons as a working material.
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