Since Q108, we have described numerically the banking business environment for each of the countries surveyed by BMI. We do this through our Commercial Banking Business Environment Rating (CBBER), a measure that ensures we capture the latest quantitative information available. It also ensures consistency across all countries and between the inputs to the CBBER and the Insurance Business Environment Rating, which is likewise now a feature of our insurance reports. Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter.
The evaluation of the ‘Limits of potential returns’ includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general. Within the 70% of the CBBER that takes into account the ‘Limits of potential returns’, the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the ‘Risks to realisation of returns’ also includes banking elements and country elements (specifically, BMI’s assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60%, respectively.
Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the ‘Limits of potential returns’ are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the ‘Limits of potential returns’, it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country. Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the ‘Risks to the realisation of returns’ category, the market elements (i.e. how regulations affect the development of the sector, how regulations affect competition within it, and Moody’s Investor Services’ ratings for local currency deposits) can be markedly different from BMI’s long-term risk rating.
Czech Republic Banking Industry
Published: February 2012
No. of Pages: 59
Price: US$530
Table of Contents
Executive Summary . 5
Table: Levels (CZKbn) . 5
Table: Levels (US$bn) . 5
Table: Levels At October 2011 … 5
Table: Annual Growth Rate Projections 2012-2016 (%) 6
Table: Ranking Out Of 59 Countries Reviewed In 2011 6
Table: Projected Levels (CZKbn) 6
Table: Projected Levels (US$bn) 6
SWOT Analysis 7
Czech Republic Commercial Banking SWOT .. 7
Czech Republic Political SWOT .. 8
Czech Republic Economic SWOT 8
Czech Republic Business Environment SWOT 9
Business Environment Outlook . 10
Commercial Banking Business Environment Rating 10
Table: Commercial Banking Business Environment Ratings .. 10
Commercial Banking Business Environment Rating Methodology … 11
Table: Emerging Europe Commercial Banking Business Environment Ratings … 12
Global Commercial Banking Outlook .. 13
Central And Eastern Europe Banking Sector Outlook 20
CEE Banks Better Placed But Risks Remain . 20
Europe Banking Sector Forecast Overview .. 25
Table: Banks’ Bond Portfolios .. 25
Table: Emerging Europe Commercial Banking Business Environment Ratings … 26
Table: Comparison of Loan/Deposit & Loan/Asset & Loan/GDP ratios 27
Table: Anticipated Developments in 2012 28
Table: Comparison of Total Assets & Client Loans & Client Deposits (US$bn) .. 29
Table: Comparison of US$ Per Capita Deposits (2011) … 30
Table: Interbank Rates and Bond Yields .. 31
Czech Republic Banking Sector Outlook 32
Most Stable Banking Sector In CEE … 32
Economic Outlook .. 36
Table: Czech Republic – Economic Activity . 38
Competitive Landscape … 39
Market Structure … 39
Protagonists 39
Table: Protagonists In Czech Republic’s Commercial Banking Sector .. 39
Definition Of The Commercial Banking Universe … 40
List Of Banks … 40
Table: Competitive Landscape Summary . 40
Company Profiles … 42
ČSOB 42
Table: Key Statistics For ČSOB, 2008-2010 (CZKmn) 43
Česká Spořitelna … 44
Table: Key Statistics For Ceská Sporitelna, 2008-2010 (CZKmn) 44
Komerční Banka … 45
Table: Balance Sheet, 2007-2009 (CZKmn) . 46
Table:Balance Sheet, 2007-2009 (US$mn) … 46
Table: Key Ratios, 2007-2009 (%) . 46
UniCredit Bank Czech Republic 47
Table: Key Statistics For UniCredit Bank Czech Republic, 2008-2010 (CZKmn) 48
ČMSS 49
Hypoteční Banka … 50
Table: Key Statistics For Hypotécní Banka, 2008-2009 (CZKmn) 50
Raiffeisenbank . 51
Table: Key Statistics For Raiffeisenbank Czech Republic, 2008-2010 (CZKmn) .. 52
GE Money Bank 53
Table: Key Statistics For GE Money Bank, 2008-2010 (CZKmn) 54
BMI Banking Sector Methodology .. 55
Commercial Bank Business Environment Rating 57
Table: Commercial Banking Business Environment Indicators And Rationale 58
Table: Weighting Of Indicators 59