The Czech crown weakened this week after Miroslav Singer, the head of the country’s central bank (CNB), revealed in an interview with Euromoney his controversial support for intervention in the FX market to avoid Japanese-style deflation, in the teeth of resistance from some CNB board members.
Miroslav Singer: Gunning for intervention Famed for his tough approach to regulation, Czech central bank head Miroslav Singer now has his sights set on currency market intervention to reflate the country’s flagging economy. He talks to Euromoney about the limitations of fiscal policy, the prospects for Czech adoption of the euro, and the dangers of regulatory integration.
Crown weakens in response to comments from ČNB governor Singer ČTK | 19 September 2013 Prague, Sept 18 (CTK) - The Czech crown weakened in reaction to a statement by Czech National Bank (CNB) governor Miroslav Singer on the need of real action in the foreign currency market and it lost 11 hellers to close at Kc25.83/EUR at 17:15, the server Patria Online reported.
Currency wars: special focus Call it what you will – currency war, competitive devaluation, currency manipulation, currency intervention – but central banks are knee-deep in the trenches as they battle to lower their exchange rates and boost their economies.
CEE’s most mature banking market remained highly profitable for all the leading lenders in 2012, making for another close-run awards race. Of the top-three lenders, Ceskaslovenska Obchodni Banka (CSOB) and Komercni Banka both boosted full-year pre-tax profits by more than a third, while Ceska Sporitelna posted a more modest 11.6% increase.
The award, however, goes to the latter in recognition of its superior growth and a sector-best first-quarter result. In the 12 months to end-March, the Erste subsidiary expanded its asset base by 9.4% to Kc992 billion ($50.5 billion), to take the number-one spot in balance-sheet terms from CSOB for the first time.
Pre-tax profit of Kc5.4 billion in Q1 2013 was more than a third higher than that posted by closest rival Komercni Banka. Qualitative achievements include winning a government mandate to administer welfare payments and operate the new social systems card, the expansion of Ceska Sporitelna’s credit card range and the development of its pension arm to take advantage of reforms to the pension system.
The award also reflects Erste’s status as the leading debt capital markets house in the Czech Republic. The Austrian bank acted on four out of 12 global transactions from the jurisdiction in the awards period, giving it a 19.1% market share.