D 2017

Determinants of the Bank Run Sensitivity in Czechia

KLEPKOVÁ VODOVÁ, Pavla and Daniel STAVÁREK

Basic information

Original name

Determinants of the Bank Run Sensitivity in Czechia

Authors

KLEPKOVÁ VODOVÁ, Pavla (203 Czech Republic, belonging to the institution) and Daniel STAVÁREK (203 Czech Republic, belonging to the institution)

Edition

Bratislava, Proceedings of the 9th International Conference on Currency, Banking and International Finance "Challenges for Financial Sector of CEE Countries in Overcoming Problems of Economic Integration in the EU" p. 147-153, 7 pp. 2017

Publisher

Ekonóm, University of Economics in Bratislava

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50202 Applied Economics, Econometrics

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

printed version "print"

RIV identification code

RIV/47813059:19520/17:00010783

Organization unit

School of Business Administration in Karvina

ISBN

978-80-225-4362-0

UT WoS

000411851600019

Keywords in English

liquid asset ratio; scenario analysis; panel regression

Links

GA16-17796S, research and development project.
Změněno: 7/2/2020 11:00, RNDr. Daniel Jakubík

Abstract

V originále

The aim of this paper is to determine maximum volume of deposits than can be withdrawn from each individual bank from the Czech banking sector and to identify the determinants of their sensitivity to a bank run. The data cover the period from 2000 to 2014. Although bank liquidity, measured by the liquid asset ratio, decreased during the analyzed period, Czech banks were liquid enough and prepared for a potential bank run. Using panel data regression analysis, we tested seven bank-specific factors and seven macroeconomic factors. The sensitivity of Czech banks to a possible bank run is determined by bank profitability. Among the macroeconomic factors, the interest rate and unemployment rate are relevant. However, the most important factor is the level of bank liquidity: banks with a sufficient buffer of liquid assets are safer than other banks, particularly during periods of financial distress.