Determinants of Sensitivity of Czech Commercial Banks to the Bank Run

The aim of this paper is to find out the worst-case scenario for individual banks from the Czech banking sector and to find out determinants of their sensitivity to the bank run in the period from 2000 to 2014. We used a liquid asset ratio and a stressed value of this ratio to assess the sensitivity of banks to a bank run. This sensitivity strongly increased in the second half of the analyzed period. The ability of individual Czech banks to survive an unforeseen deposit withdrawal significantly differs. Two bank specific (profitability and liquidity of the bank) and two macroeconomic (interest rate on loans and unemployment rate) factors have the most important influence on the sensitivity of Czech banks to a possible bank run.