Czech banks could ride out recession plus deflation, central bank says

CNB governor Miroslav Singer

The Czech financial sector is "financially strong and ready to comply with new European regulatory rules", according to the Czech National Bank's Financial Stability Report 2013/2014, published today.

The report says the main risks to the financial sector "stem above all from a possible return of the recession due to adverse developments in trading partner countries and a deterioration in domestic demand", but stress tests showed that "banks and insurance companies would withstand a strong

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