Publication details

Bank Risk-taking in Connection with Interest Rates

Authors

SPONEROVÁ Martina SPONER Miroslav

Year of publication 2016
Type Article in Proceedings
Conference Proceedings of the 3rd International Multidisciplinary Scientific Conference Social Sciences & Arts SGEM 2016, Book 2, Volume 3
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web SGEM International Multidisciplinary Scientific Conferences on Social Sciences and Arts
Field Economy
Keywords interest rate; risk-taking; banking industry; non-performing loan; profitability
Description The gradual decrease of interest rates is noticed from the beginning of 2000 to the present. It caused that the risk-taking appetite of banks increased and banks have softened their lending standards. We examine the impact of interest rates on bank risk-taking and on the profitability of banks in this paper. The research is applied on four biggest banks in the Czech Republic and their sister companies operating in a country where the whole group of financial institutions is established. We compare the results and answer following questions. Do low interest rates increase risk-taking appetite of banks in Czech Republic equally as of their sister companies? How Czech banks faces to low interest rates in connection with profitability comparing to their sister companies?
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