Interest rates and risk in the banking sector

Authors

KRAJÍČEK Jan DOLÁKOVÁ Bohuslava

Year of publication 2016
Type Article in Proceedings
Conference 8th International Scientific Conference on Managing and Modelling of Financial Risks
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords Bank; Deposits; Loans; Revenue; Risk
Description Changes in banks' clients, is reflected on the one hand to the increase in deposits and the other in increased demand for financing. The banking sector in recent years a high increase in client deposits, which is connected a significant decline in deposit interest rates. Banks also declining revenues from traditional banking charges. The increase in client deposits at low interest rates, forcing banks to seek new ways to provide credits and loans when falling aversion to credit risk. Risk aversion expressed by the ratio loans in default on average assets is dependent on the size of banks, particularly their client orientation.
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