H81 - Governmental Loans; Loan Guarantees; Credits; Grants; BailoutsNávrat zpět

Banks which underwent the privatization process in the Czech Republic, i.e. Česká Spořitelna, a.s., Československá Obchodní Banka, a.s., Investiční a Poštovní Banka, a.s., Komerční Banka, a.s., Živnostenská Banka, a.s., have been very widely discussed by both professional and lay public from several perspectives. Namely, what the actual economic condition of these banks was on the date of completion of the privatization, as well as the transfer of graded loans, or rather low-performing assets, which the state took over and reimbursed to the banks through consolidation institutions (hereinafter CI), and all this obviously in relation to the purchase price obtained within the scope of privatization. The aim of this article, within the possibilities stipulated by its scope, is: 1) To analyse the development of the banks' economic condition in the time interval of 1990-2010; 2) To identify factors that determine the volume of income from the sale of the state's investments in privatized banks; 3) To confirm or refute the hypothesis that the bank rescues before the completion of the privatization process were excessive; 4) To analyse the overall balance of the privatization process, or rather the efficiency of the sale of the banks; 5) To test the practical applicability of the economic theories connected to the issue in question. With regard to the above, the article is structured in the following manner. Firstly, literary research of articles on the theme of The Privatization Of Commercial Banking in reputable economic impact magazines is processed. This is followed by the actual economic analysis of the privatized banks in the Czech Republic, where economic parameters are examined in an interval of approximately 20 years - total assets, costs, revenue, profit, capital adequacy, etc. The conclusion firstly evaluates the development of the economic condition, then identifies factors that determine the volume of income from privatization, the excessiveness of the banks' rescue, the overall balance of the privatization process, and the practical applicability of the economic theories in question.

The transformation of centrally planned economy to a market economy has confi rmed that the basic premise for the economic policy, characterized by liberal market economy, is democratically established property rights. This text analyzes the National Economic effects of one of the most complex transformation processes, which is the process of privatization. This publication examines all three legal regimes through which were the entire privatization process implemented. These are "The Small Privatization" according to the Act no. 427/1990 Coll., "The Large-scale Privatization" according to the Act no. 92/1991 Coll. and "The privatization of agricultural and forestry property" according to the Act no. 229/1991 Coll. and the Act no. 95/1999 Coll., with respect to the: affected economic theories, theory of property rights in particular, transaction costs theory, theory of interested groups, rent-seeking theory, theory of government failure, etc.; macroeconomic analysis of the process itself; macroeconomic analysis of the use of the proceeds from the privatization process; evaluation of the National Economic effects, whether positive or negative, of the privatization process in the Czech Republic. The aim of this text is to provide professional and comprehensive overview of the National Economic effects of the privatization process as a whole, which has not been published until now by any author in view of the fact that the perception of the privatization process of the professionals and the general public has been narrowed to a process implemented by the National Property Fund and the Ministry of Finance (by selling shares through vouchers). Finally, the aim of this publication is to analyze the application of economic theories within the privatization process in the Czech Republic which describes the pros and cons of this unique economic and national economy "experiment".

This paper analyses various approaches to dealing with problematic assets of the banking sector. These approaches include the establishment of an asset management company, capital injection and sale of the bank, purchase and assumption transactions, liquidation or bridge bank. All these approaches are evaluated with respect to Czech transformation experience and with respect to experience of other foreign countries. The paper concludes that the establishment of Czech Consolidation Agency (Czech Consolidation Bank, respectively) was the least suitable approach to dealing with problematic assets in the Czech banking sector during the period of the transformation. The paper furthermore suggests that other methods, such as the liquidation accompanied with deposit insurance payments, publicly assisted mergers and acquisitions, or finally privately or publicly assisted purchase and assumption transactions should have been used instead. The knowledge of these alternative approaches to weak-bank restructuring is supposed to guarantee that Czech authorities will not step up to establish a similar inefficient asset management company, should banking-sector problems emerge once again.