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Banks in the czech republic: the current state and prospects

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  • Petr Zahradník

Abstract

The transformation of the Czech banking sector was launched on the principles adopted even before November 1989, when the monobank structure of Czech banking was abolished on January 1st, 1990. The former State Bank of Czechoslovakia, which fulfilled the functions of both monetary policy and commercial banking under the conditions of a centrally planned economy, was delimited on that date and the responsibility for monetary policy became its prerogative. The functions of commercial banking began to be fulfilled by the existing commercial banks, until then visibly subordinate to the SBČS (Česká státní spořitelna, Československá obchodní banka, Živnostenská banka in the Czech Republic, and Slovenská Štátna sporitel'ňa in Slovakia), as well as by the newly-established successors to the SBCS in the commercial sphere (Komerční banka in the Czech Republic, Všeobecná úverová banka in Slovakia) supplemented by Investiční banka, already an established bank at that time, which took over some important activities of the former SBČS.

Suggested Citation

  • Petr Zahradník, 1997. "Banks in the czech republic: the current state and prospects," Prague Economic Papers, Prague University of Economics and Business, vol. 1997(1).
    • Handle: RePEc:prg:jnlpep:v:1997:y:1997:i:1:id:119
    DOI: 10.18267/j.pep.119
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