Economic Analysis of the Business Activity of the Selected Banks in Czechoslovakia during the Great Depression (1929-33)
|Author:||Bc. Diana Bosáková|
|Year:||2019 - summer|
|Leaders:|| doc. PhDr. Ing. Antonie Doležalová Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis deals with the analysis of the economic situation of selected five
Czechoslovak banks: Živnostenská banka, Tatra banka, Anglo-československá banka,
Banka Československých legií and Agrárna banka during the Great Depression.
Through the available data from 1922 – 1938, the development of the behavior and
efficiency of banks in the pre-crisis and during the period is proven. The aim of this
work is to describe the situation of banks before the onset of the economic crisis and to
identify the behavior of bank management during the Great Depression using four
financial indicators. Financial indicators examine the profitability, liquidity and
solvency of banks. The results of the work showed that banks behaved inefficiently
already before the crisis, which is indicated by low values of return on equity and assets.
The ratio of loans to deposits due to the crisis has fallen in almost all banks, but points
to the inefficient behavior of some of the Czechoslovak banks as part of low lending
before the crisis. Although none of the Czechoslovak banks collapsed during the crisis,
this thesis points to the inefficient behavior of bank management, which relied heavily
on state aid.