G28 - Financial Institutions and Services: Government Policy and RegulationReturn

This article investigates the efficiency and potential effects of establishing European banking union. We build on recapitalizing banks model introduced by Freixas (2003) and Schoenmaker and Siegmann (2013) to capture the efficiency improvement of resolution over banks in distress. Our data contains Europe's Top 27 banks by their level of equity. Mathematical evidence suggests efficiency improvement of resolution mechanism in all of analyzed economies in referenced years (2005, 2007, 2009 and 2012). The results also confirmed initial hypothesis that the positive effects of moving from home to supranational regulation framework are much more significant in years of good economic performance.

The article deals with the current development and expected changes in pension expenditure in the member countries of the EU. It is based on the reform of the pension system in Slovakia, objectives of the reform, evaluates the objectives in relation to the impact of the introduction of the second pillar funded pension system. Expenditure on pensions has a growing trend in all EU countries, as revealed from the economic analysis of the European Commission from 2012. This is based primarily on the expected demographic development of the population and the government deficit. The paper compared the gross and net replacement rate to salary from pension benefits in EU countries. There is highlighted the recognition that in most EU countries the increase of the wages declining net replacement rate, in Slovakia it is not true. The global crisis and its accompanying phenomena have a negative impact on pension systems, which necessitates their permanent reforms, ensuring a balance between financial and social sustainability of pension systems, changes in the economic, social and migration policy of states. Economic policy makers are constantly faced a decision that must take into account the requirements on the benefits and the requirements in the amount of the tax wedge, while maintaining a stable level of government debt in the next few decades. Persistent high government deficits, together with the negative impact of demographic trends will substantially worsen the sustainability of public finances. For this reason, it is necessary due to consolidation of public finances reduce the current high levels of government debt to level that even under the influence of expenditures sensitive to the aging of the population will be at sustainable levels defined by the Stability and Growth Pact.

This article deals with selected issues of the insurance intermediary business on the Czech insurance market. It focuses on some of the practical aspects, principles and rules of insurance brokers and insurance agents with regard to the presumed expectations of customers. Due to forthcoming legislative changes in this course of study this article is trying to answer selected questions related to the cancellation of the above-mentioned status of insurance intermediaries and creating a new category labeled independent broker. This article deals with the issue not only from the perspective of insurance intermediaries, but also from the perspective of the supervisory body and gives a warning to potential clients of these services.

The main objective of the new regulation of the insurance industry is the protection of policyholders, insured persons and beneficiaries, connected with the financial stability of the insurers supervised. The stabilizing role of the insurance industry will be supported by higher demands on high-quality and functional risk management system and on the robust system of internal control in commercial insurance companies. These demands follow from the implementation of a new regulation Solvency II. This paper focuses on the analysis of specific goals of the realization and structure of the Solvency II regulation within its second pillar. A partial aim is to compare the former and the future approach of insurance regulations, i. e. Solvency I and Solvency II, under the conditions of the integrated insurance market of the European Union.In the paper, partial results achieved in the frame of research program MSM 6215648904/02 are solved, in relation to goals and methodology of the given research aim.

Primal comprehension of risk capital has been enlarged gradually in the course of time. It is approved by significant amount of funds in Europe and in the USA, which was explicitly specialized for investing in initial development. They diversified their investments and enlarged the subject of their activity to all sphere of risk investments, or focused in development financing only. Change of concept of a meaning risk capital symbolized diversification market of risk capital into two parts: market of classic risk capital and market of development capital. Risk capital is investment in equity of enterprise, which is without history. Objective of capital development is financing of quick growth and implementation of innovative intentions of enterprise with history and without sufficiency of capital. Article presents a different opinion on state interventions at the market of private equity. Significant attention is devoted to development premises of private equity formal market in the middle and east Europe. Next development of private equity market in the countries of a respective region depends on measure of impact of global recession and on development assumptions of effective functioning of market. Before crisis sizeable volume of accumulated capital waits for investing, and therefore we can't expect to stubbing recession of risk capital market in the states of analyzing region now.

This article deals with the payment service provider of small-scale. These entities are authorized to provide payment services in the Czech Republic thanks to Payment System Act. This paper provides a practical analysis of the behavior of these entities with a preview of a defined theoretical base, which represents also the current legislation. Potential customers of these payment services are mainly small and medium enterprises, entrepreneurs and private individuals too. From a wide range of payment services this article mainly focuses on the implementation of cashless payments to and from abroad, which are associated with the conversion of a Czech or foreign currency. The empirical part is focused on monitoring of obtainable exchange rate by selected payment service provider of small-scale. Data were compared with publicly available data of selected payment institution in order to verify the hypothesis if these entities are not only unnecessary part of the whole chain. According to the findings of practical knowledge of these entities we can say that payment institutions act to payment service providers of small-scale in two unique positions, as service provider as well as a competitive entity.