The following features characterize the financial sector, especially its banking segment in the Czech Republic:
- Banks dominate the financial sector in the Czech Republic
- From the view of the ownership structure the banking sector in the Czech Republic is highly internationalised
- The concentration rate of the sector is very high and dominated by big banks
- In spite of the high concentration rate a considerable intensity of competition among banks remains; the competitive environment, however, differs from one banking market segment to another
- Medium-size banks continue to strengthen their activities and represent one of the driving forces aiming at a constant inflow of market innovations ; thus they embody a real competition to big-size banks in the selected banking market segments
- Banks are the leaders almost in all financial groups, operating in the Czech Republic; thus we can speak of the financial market, where the financial conglomerates controlled by banks are the key players
Financial sector in the Czech Republic is supervised and regulated by the Czech National Bank (ČNB); in the ČNB has been - since April 2006 - concentrated the agenda of the supervision over the financial market and over all its sub-segments, i.e. not only supervision of banks, but also of
- Credit unions
- Insurance companies
- Pension funds
- Investment companies, investment and mutual funds
- Leasing companies etc.
- The banks have been focusing their attention on the development of retail banking (household lending – both consumer and home credit) in the recent years; retail lending is a fairly dynamic segment of the banking market.