Acta Univ. Agric. Silvic. Mendelianae Brun. 2005, 53, 69-76
Published online 2014-12-27

Analysis of development of buldings societies market in the Czech Republic

Vlasta Kašparovská

Ústav financí, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika

The paper analyses market trends of the building societies in the Czech Republic in years 1995–2003. The main aim of the contribution is to verify the following thesis:
1. In previous development, it comes to the permanently increasing growth in the market of deposits and loans of building saving.
2. Concentration in the market of building saving decreases.
Analyses is made on two partial markets : deposit market and market of building saving loans. Growth rate index was chosen for the evaluation of the growth of both submarkets. Herfindahl-Hirchman index was chosen for evaluation of concentration trends. Analyses of the building saving market using the stated methodical approaches enables to enunciate the findings for the appointed hypothesis.
Both submarkets do not show permanent increasing of growth rate in the period 1995–2003. The growth rates of both markets are declining in the first part of the period, the growth rates are increasing in the second part of the period. The concentration level of both markets is decreasing in years 1998–2003. This trend in the building societies market was influenced namely by general trend of market rate of interest in this period, by increasing exploitation of the real estate credit as a form of housing financing and by more activ credit policy used by minority building societies.
The concentration development in the market of deposits and loans of building saving is not identical with the development of concentration in the market of deposits and loans in the whole bank sector. It may be deduced, that the development in the whole bank sector has been affected by the factors that have not operated in the market of building saving – decrease of banks in the bank sector of Czech Republic and educing of the part of redressed bank assets out of Czech Republic bank sector.


8 live references