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10. 11. 2008 16:34

October 10, 2008: Communiqué After Premier Mirek Topolánek´s Meeting with the Leaders of the Czech Banking Association

Prime Minister Mirek Topolánek today met the leaders of the Czech Banking Association in Prague’s Kramá?ova Villa.
After their discussions, both sides have agreed that: - the domestic banks have at their disposal considerable financial liquidity and sufficient capital to cover the outstanding risks; - the current situation in the Czech financial sector does not call for any non-standard steps, regulation or intervention on the part of the Government; - the key task now facing responsible politicians is to prevent a panic, and work for the preservation and promotion of confidence in the Czech financial market; - the greatest risk posed to Czech economic growth, which can, however, hardly be directly affected is the development of foreign demand; - therefore, the Government and the Czech Banking Association will be carefully analyzing developments in the financial sector, namely with a view to developments of the volume of commercial credits and rates, eventually holding consultations on steps conducive to maintaining competitiveness of the domestic business subjects. 

Premier Mirek Topolánek has also praised the current credit caution and foresight displayed by the domestic banks, the financing of credit expansion through primary deposits, and the measures adopted by the Czech National Bank in support of promoting trust in the financial market. For its part, the Czech Banking Association has acknowledged the rational approach taken by the Czech Government in proposing measures aimed at maintaining confidence in the Czech financial sector. Representatives of the banking sector have also emphasized that the Government’s steps leading to the stability of the public finances have made a sizable contribution to the Czech Republic’s macroeconomic stability at the time of worldwide financial turbulences. 

That was also why the Czech Banking Association has assured the Prime Minister that the turbulences on the world financial markets will not principally threaten the process of providing credits to the business sector and households, and that there is no reason for changing the banks´ strict standards for caution in granting credits.

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