Czech central bank to debate limiting bond purchases by banks -Hospodarske Noviny

May 21, 2015 7:11 AM

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PRAGUE May 21 The Czech central bank's board will debate limiting Czech state bonds purchases by local banks, to help protect the banks from any deterioration in the country's financial health, the newspaper Hospodarske Noviny said on Thursday.

The bank would evaluate the state's finances annually. If the country got into financial trouble, it could order banks to offload some of their holdings of state bonds, since the bonds would fall in value. If a bank refused, it would be obliged to increase its capital reserves, the newspaper said.

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