trending Market Intelligence /marketintelligence/en/news-insights/trending/YHG_xoM01XokWQvhB2FRnw2 content esgSubNav
In This List

Moody's changes Czech banking sector outlook to stable


Latin American and Caribbean Market Considerations Blog Series: Focus on LGD


Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level


Financial Institutions Factor Transition Risk into Climate-Related Stress Testing

Moody's changes Czech banking sector outlook to stable

Moody's on Oct. 14 revised the outlook on Czech Republic's banking sector to stable from positive, citing a slowing GDP growth and its expectation that the country's banks will deliver steady performance during the next 12 to 18 months.

Although Czech lenders' loan quality is among the best in Central and Eastern Europe region, it will weaken moderately after several years of rapid loan growth, the ratings agency said.

Czech banks' net profits are expected to improve in 2020 amid rising interest rates and strong lending growth, according to Moody's.

The agency expects that GDP growth will slow down to 2.5% in 2020 and to 2.7% in 2019, compared with 2.9% in 2018.

Big banks in the country hold low-cost and stable deposits that are sufficient to finance their lending, Moody's said, adding that it expects that their funding profiles will remain stable over the next 12 to 18 months.