Impact of Liabilities in the Banking Sector to Monetary Aggregates and Interest Rates

The paper focuses on analyzing the relationship between liabilities in the banking sector, the monetary aggregates and the interest rates. Current trends in the banking sector and the orientation of the cashless payments in particular are significantly reflected in the development of its liabilities. Relationship among monetary aggregates and the development of interbank interest rates and base rates that are announced by the central banks indicates the possibility of significant future problems. The increase of liabilities in the banking sector transforms into pressure on senior bank management to seek appropriate opportunities for their investments. Suitable data for analysis were obtained primarily from the CNB, so this contribution is dedicated to the development of the Czech banking sector. There has not been given sufficient attention to this topic yet. However, there is not suitable literature, data and documents were obtained primarily in the CNB.