The Czech central bank governor rejected fast euro adoption as a shield against the financial crisis on Thursday, while his Polish counterpart cast doubt on the government’s 2012 euro zone entry plans due to the turmoil.Their statements highlighted the divergent stances toward the single currency in central and eastern Europe’s EU newcomers as they struggle to deal with the fallout of the global turmoil, following a month of crisis in Hungary.Continue Reading

Interbank money loans among Czech banks have become much more expensive and are provided for only very short time periods. Decreased trust and cash at its highest value – that is what the Czech banking market looks like these days. Everyone wants to have as much cash in their balance as possible. That is what bankers told HN in an anonymous poll. To get a loan for longer than one day is basically impossible in the Czech Republic. Also the rate for money loans has been increasing. While before the crisis, banks loaned to one another at official interbank rate – the so-called Pribor – now they loan money for Pribor plus extra money. Moreover, these rates have jumped significantly.Continue Reading

The global financial crisis, which has been crushing banks all over the world, has directly hit a Czech bank for the first time. The Belgian KBC, ČSOB’s parent company, announced Wednesday it is expecting nearly EUR 1 billion losses in the third quarter of this year. The reason for the losses is the overvaluation of securities that the company, including ČSOB, bought. The investment problems will quickly lower ČSOB’s expected profit by CZK 6.2 billion. Spokesman Ivo Měšťánek said if it weren’t for the investement problems, the bank’s revenues would have totalled CZK 8.9 billion in the first three quarters. Now it will be only CZK 2.7 billion. He said the overvaluation of securities will not have any impact onContinue Reading