Czech banks resilient to negative shocks, according to stress tests

The Czech banking sector is sufficiently resilient to negative shocks, according to the results of stress tests released by the Czech National Bank on Wednesday. The tests suggest that the bank’s capital levels would remain above the 8-percent benchmark even under a scenario of a strong decline in the economic activity in the Czech Republic and abroad. The sector’s resilience is mainly based on its relatively high capital adequacy which in September exceeded 18 percent, the central bank said.

Author: Jan Richter