National Bank reports that the banking sector is resilient

The Czech National Bank reports that the banking sector is resilient, according to the results of stress tests. The central bank’s report says that stability should not be jeopardised even in the event of a very unfavourable development, in which case however some institutions would suffer losses that might require billions in capital injections from shareholders. The results of the tests are similar to those made in the past. The bank also tested the insurance and pension funds sectors and found that the latter remains highly vulnerable to large fluctuations in the prices of its securities.