Can we Assess Banks’ Activity?

This Article concerns the agency theory before the bankruptcy proceedings with regard to the specifics of the Czech Republic. The article tries to find out if there is enough data available to examine how many defaults are launched by bank in the Czech Republic. Given that bank lenders have better bargaining power in comparison with other classes of claimants, the view focuses on their activity while initiating bankruptcy. We used the data that were collected manually by students of the University of Economics in the Research Default project. In summary, companies do not report their performance and therefore we cannot assess bank's activity due to the lack of data. Direct cost in our sample varied from 6% to 153% of equity value one year before bankruptcy and from 1% to 43% of value calculated by simplified market comparison method 3 years before bankruptcy.