Financial Tools with the State Support. The Case of Building Societies in Czechia

Abstract

Saving with the services of a building society is popular in the Czech Republic, mainly due to financial state support combined with low risk that is typical for savings.At first glance, the Czech environment of building societies seems like an oligopoly, where there are currently five entities on the market with a not very differentiated product. It is therefore proposed to carry out an analysis to ensure that these features do not give rise to undesirable effects, in particular with regard to public expenditure and its justification. That is why the aim of this paper was to defend or question the position of building savings among financial market savings and investment instruments with regard to the presence of state support within the Czech environment. Special attention was paid to bank fees. From the result of the analysis it is possible to conclude that not only clients but also building societies themselves are significant recipients of state support which reduces the efficiency of public spending. On the other hand, state financial support helps to attract a significant amount of deposits, which largely serve as housing loans. Thus, this finding speaks in favor of the efficiency of public spending.

Analysis of Bank Accounts Using Multi-Criteria Decision-Making and a Custom Web Application

“…The study (Fernandes & Pinto, 2019) states that owing to the intangibility, long-term delivery, and complexity of financial services, also characterized by considerable uncertainty (Ponsignon et al, 2015), cultivating high-quality relationships with customers is of paramount importance (O'Loughlin et al, 2004;Oly Ndubisi, 2007), particularly in an age of increased depersonalization, homogenization, and automation in the industry (Barari & Furrer, 2018;Hedvicakova, 2017;Mačí, 2022).…”