Using the Albrecht et al. (2003) version of the Machado and Mata (2005) decomposition technique along the wage distribution, we find that immigrant workers do not affect changes in the Czech wage structure between 2002 and 2006 despite their substantial inflows. Instead, changes in the wage...

This article presents the results of stress tests of the Czech banking sector conducted using models of credit risk and credit growth broken down by sector. The use of these models enables the stress tests to be linked to the CNB's official quarterly macroeconomic forecast. In addition, the...

This article sets out to describe and discuss the methodology of selected financial soundness and financial stability indicators, including the attempts to construct an aggregate financial stability indicator. The article also presents to the public for the first time the values of the IMF's...

This article discusses the ratings of financial market participants as one of the indicators of financial stability. Particular attention is paid to the sector of banks and insurance corporations in the Czech Republic. Besides discussing the ratings of individual financial institutions, the...

The subject of this article is stress tests, which constitute one of the key quantitative tools for the assessment of financial stability. Under one of the approaches, financial stability may be viewed as a situation where the financial system, inter alia, shows a high degree of resilience to...

This article, based on an empirical analysis, discusses factors affecting property prices and tries to identify periods of property price overvaluation by time series analysis for the Czech Republic as a whole and by panel regression for the Czech regions. The time series analysis identifies...

This article discusses the potential risks to price stability stemming from the influence of foreign direct investment on the economy. The analysis uses corporate data from a unique Deutsche Bundesbank database containing an almost complete sample of German enterprises that invested in the Czech...

The banking sector is a dominant component of the financial system in the Czech Republic. The stability of the banking system is of key importance as regards the financial stability of the economy as a whole. Any turbulence in the banking system can, moreover, generate a need for additional...

This article discusses the estimation of a key credit risk parameter – loss given default (LGD) – and calculates it for selected companies traded on the Prague Stock Exchange. The importance of estimating LGD stems from the fact that a lender’s expected loss is the product...