The aim of this thesis is to evaluate the impact of Basel III on Czech banks and to compare the effectiveness of capital ratios in predicting bank distress. After a short introduction, in the second chapter we estimate the impact of tightened Basel III capital regulation on lending spreads in the Czech banking sector. In this chapter we conclude that the tightened capital regulation will not lead to more expensive borrowing in the Czech Republic mainly because the banking sector has been well-capitalized. In the third chapter we identify the strategies that Czech banks adopted in order to significantly increase their capital ratios between 2009 and 2013. Our analysis shows that retained earnings have played a major role in increasing the average capital adequacy of Czech banks. In addition, the Czech banks have decreased their average asset risk to further strengthen the overall capital adequacy ratio. In the last chapter, using a dataset on bank distress in European banks during 2008-2012, we compare the performance of risk-weighted capital ratios and simple leverage capital ratios to predict bank distress. Our results suggest that simple leverage ratios can perform better than complex risk-weighted capital ratios when predicting bank distress. While such a finding is not conclusive, it suggests that more complex risk modeling does not always mean better risk modeling.

The aim of this thesis is to take a closer look on how the stricter capital requirements defined in Basel III framework will influence European banks from a complex point of view - lending rates and volumes of provided loans, profitability, risk taking and market value of banks. Our analysis employing simultaneous equations and panel data models on exp post data on almost 600 banks operating in the EU in period 2005-2011 reports following results: (1) Those banks that will be forced to effectively increase their common equity ratio (CE/RWA) will reflect a one percentage point increase in this ratio into higher lending rates by 18.8 basis points. (2) This should, in turn, lead to a modest impact on the volume of provided loans, i.e. as a result of an increase of CE/RWA to 9.5 % (the case of the strictest scenario), the loan volumes are expected to be lowered by 2% from the current volume. (3) Our study further reports that higher capital requirements will cause a decrease in banks' profitability accompanied by a drop in risk taking. Banks increasing their CE/RWA by one percentage point are expected to experience a decrease in their profitability (measured by ROAA) by 0.122 percentage points. (4) The above mentioned effects were identified as rather negative signals for equity owners, which should be...

Adequacy of penal sanction: Comparison of punishing traffic criminal offences and decumbent traffic administrative offences committed under influence of addictive substances in Czech and Slovak republic. Master's Thesis Michal Mikuš Summary. This thesis makes survey on a punishing adequacy of traffic offences committed under influence of alcohol and the other addictive substances. The theoretical basis, that knowledge is necessary prerequisite for reviewing punishing adequacy, like theories of punishment, purpose of punishment and a principle of adequacy, are in the theoretical part of the thesis. In the special part of the thesis is comparison of valid and effective law in the Czech and Slovak Republic. The practical part of the thesis is composed of an analysis of decisions delivered by the County Traffic Inspectorate Banská Bystrica, County Traffic Inspectorate Bratislava I., Banská Bystrica County Court, Bratislava I. County Court, City Hall of Zlín, City Hall of Prague, Zlín County Court and the Prague 2 Circuit Court. The analysis is composed not only of punishment adequacy review, but also of the all substantive and procedural deficiencies, that occurred in the decisions of particular state's body. At the end is provided comparison of analysis outcomes, which stemmed from decisions of national...