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Deutsche Bank AG CEO Josef Ackermann warned European leaders Sept. 5 that time is running out for governments to act.
The shored-up Czech banking sector continues to be a refuge amid the squall of the eurozone debt crisis. But the wave of market fears that Europe's largest financial institutions are more exposed to debt in peripheral countries than previously thought will crash on non-eurozone shores soon enough, analysts say.
The results of the most recent stress test released Aug. 30 by the Czech National Bank (ČNB) were encouraging if unsurprising, considering the country's history of conservative banking. The average capital adequacy ratio, a measure of a bank's capital compared to its risk, remained high in June at 15.9 percent, well above the required 8 percent.
"There is still large liquidity surplus in the system, which makes Czech banks independent in terms of financing from their mother companies based abroad," said Patrik Rožumberský, an analyst with UniCredit Bank.
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