Template-Type: ReDIF-Article 1.0 Author-Name: Jiří Šindelář Author-Name: Michal Erben Title: Problems with quality in financial distribution: a state or market failure? Abstract: The paper deals with negative impacts of chosen regulatory attributes (regulatory arbitrage, relative over and under regulation) on economic agents’ behaviour in the financial distribution area. Using three case studies from the Czech market (life insurance, corporate bonds and pension savings), we demonstrate situations, when state regulatory incursions caused substantial deformations of the target market and the subsequent detriment of final customers. Although partial market failures cannot be ruled out, our observations show that in particular, the regulatory arbitrage between individual sub-sectors of the financial market is a potent stimulator of distribution momentum, which, in turn, can lead to future systemic risks. Keywords: Systemic risk, Life Insurance, Životní pojištění, Financial market regulation, Corporate bonds, Pension savings, Regulace finančního trhu, Korporátní dluhopisy, Penzijní spoření, Systémové rizik Classification-JEL: D04, D47, G2, K22 Pages: 5-17 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=498.pdf File-URL: http://www.vse.cz/cfuc/498 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2017:y:2017:i:3:id:498:p:5-17 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/498 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Diviš Title: Options valuation included jumps in intervention period Abstract: The fundamental equilibrium of the FX rate was significantly impacted by interventions of the Czech national bank. This article focuses on intervention influence on option valuation EURCZK currency pair as an underlying asset in years 2013-2017. We describe and quantify the prices of aforementioned FX options applying different approaches for historical and implied volatility estimation. Applying the implied volatility, we calibrate the jump diffusion model which provides the description of magnitude and direction of jumps in the underlying asset price. Mainly to ensure better comparability of the data for volatility and model estimation, both pre-intervention and post-intervention data were used. Estimated parameters show, that markets in 2013 did not trust the Czech economy and expected jump depreciation of the Czech crown. In 2014 and 2015 markets expected no major deviations from the exchange rate commitment and, therefore, only depreciation was expected. From 2016 onwards markets adjusted expectations in line with the exit from exchange rate commitment and hence expected appreciation. Due to high volumes of speculative capital and large short sales of the Czech crown markets again expected depreciation. Keywords: Volatility, Option, Jump diffusion model, Intervention, Opce, Volatilita, Model se skoky, Intervence Classification-JEL: C61, E5 Pages: 19-38 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=499.pdf File-URL: http://www.vse.cz/cfuc/499 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2017:y:2017:i:3:id:499:p:19-38 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/499 Template-Type: ReDIF-Article 1.0 Author-Name: Zbyněk Revenda Title: Banking sector of the Czech Republic: development in crisis period and present Abstract: The author analyzes the development of the Czech banking sector over the past ten years, focusing on selected assets and liabilities to assess the liquidity and solvency situation and development. Banks did not have any more serious problems even in the years of economic downturn 2009 and 2012-2013, they did not need assistance from the central bank or from the state. A potential and paradoxical problem may be the high level of free reserves at the central bank. It is a risk-free and highly liquid asset, but also a low-yielding asset. This also leads to virtually nil state of bank lending from the central bank. The main reason for the dramatic growth of reserves was foreign exchange intervention against the koruna. Banks as a whole are also solvent, the average capital adequacy considerably exceeds the level of minimum requirements. Severe financial crises are not connected with the Czech banking system in the analyzed period. Keywords: Capital adequacy, Liquidity, Kapitálová přiměřenost, likvidita, Crisis, Krize, Bank assets, Bank liabilities, Bank Reserves, Solvency, Aktiva bank, Pasiva bank, Rezervy bank, Solventnost Classification-JEL: E5, G21 Pages: 39-55 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=500.pdf File-URL: http://www.vse.cz/cfuc/500 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2017:y:2017:i:3:id:500:p:39-55 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/500 Template-Type: ReDIF-Article 1.0 Author-Name: Savina Finardi Author-Name: Jakub Fischer Title: Odhad Mincerovy funkce v podmínkách České republiky Abstract: The paper deals with the evaluation of investment in higher education through Mincer's function, which is one of the most important methods of evaluation of this investment. The authors deal with a large set of observations of a total of 20,000, reflecting the positive influence of higher education on the wage earnings of individuals in the conditions of the Czech Republic. However, the positive impact of education attained is not the only relevant factor, but also other factors such as the region, gender and the economic sector affect the total earnings. Keywords: Human capital, Higher education, Mincer function, Lidský kapitál, Vysokoškolské vzdělání, Mincerova funkce Classification-JEL: I23, J31 Pages: 57-68 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=501.pdf File-URL: http://www.vse.cz/cfuc/501 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2017:y:2017:i:3:id:501:p:57-68 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/501