Czech Commercial Banks: Are they Liquid Enough to Finance Loan Commitments?

The aim of this paper is to find out if Czech commercial banks are liquid enough to meet sold loan commitments and if there are any significant differences depending on the size of the bank. We have used the scenario analysis for three liquidity ratios in the period from 2007 to 2012. The majority of Czech banks is able to finance the use of 50 % of loan commitments. The most vulnerable banks belong to the group of medium banks; they focus strongly on lending activity which they finance also from other sources of financing.