A Financial Performance Comparison of Czech Credit Unions and European Cooperative Banks
| Autor: | Mgr. Matěj Kuc , prof. PhDr. Petr Teplý Ph.D., |
|---|---|
| Typ: | Články v impaktovaných časopisech |
| Rok: | 2018 |
| Číslo: | 0 |
| ISSN / ISBN: | ISSN 1210-0455 (print), ISSN 2336-730X (online) |
| Publikováno v: | Prague Economic Papers, Czech Republic |
| Místo vydání: | Prague |
| Klíčová slova: | credit union, cooperative banking, moral hazard, system GMM, Z-Score |
| JEL kódy: | C23, G21, L25 |
| Citace: | Kuc, M., Teplý, P. (2018). A Financial Performance Comparison of Czech Credit Unions and European Cooperative Banks. Prague Economic Papers, Vol. Vol. 27 No. 6, pp. 723-742. https://doi.org.10.18267/j.pep.682 |
| Granty: | GACR 15-00036S Credit Risk Modeling for Financial and Commodity Assets Portfolios GAUK 105815 (2015 - 2017) Příjmy z bankovních poplatků a provizí - jejich determinanty a vliv na ziskovost a rizikovost bank GAUK č. 488317 - Výkonnost družstevního bankovnictví v České republice a dalších zemích EU VŠE IP100040 |
| Abstrakt: | This paper empirically assesses the financial performance of Czech credit unions in relation to other European cooperative banks in terms of their profitability and stability. We created a unique dataset of 283 cooperative banks from 15 European countries in the 2006–2013 period. Using system GMM and alternative panel data methods, we reveal worse performance of Czech credit unions in terms of both profitability and stability compared to their European peers. We also argue that big credit unions in the Czech Republic has undertaken a non-sustainable business model depending on excessive risk taking while enjoying implicit subsidy via deposit insurance. In conclusion, we argue that under recent capital management policies, big Czech credit unions will likely face serious financial problems in coming years. |
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