Current Trends within the State Support Credit Insurance System in the Czech Republic

This dissertation offers a complex analysis of the state supported export credit market in the Czech Republic. For the most part of the work the author deals with credit insurance market as it represents a key part of the system. Author analyses portfolio specifics of the local export credit insurance agency and searches for the most effective risk mitigation techniques and procedures in order to maintain its long-term non-loss operations while keeping in mind its special supportive mission. Particular attention is given to the export credit insurance agency's business policy that copes with problems of information asymmetry, moral hazard and adverse selection. Author points out the differences between state supported and commercial insurers, analyses European legislation preventing export credit agencies from competition with commercial insurers and outlines more effective endogenous and self-regulating system. Minority of the work deals with less important export credit financing agency that represents a dominant player at the export credit financing market. Author finds almost twenty reasons of its extraordinary position at the market that has no analogy within developed countries worldwide and outlines a system securing its complement role to the commercial banks. Finally the author provides the analysis of the whole state supported export credit system, highlights its main risks in conjunction with each other and concludes that combination of negative circumstances influencing several important features of the system could possibly lead to a long-term instability of the system.