Erste CEO on Earnings, Czech Housing Market, Brexit

The transcript covers discussions on interest rates in the eurozone, particularly focusing on the Czech Republic's recent rate increase and its impact on deposits and loans. It addresses concerns about a potential housing bubble in the Czech market, the business environment in Central and Eastern Europe, and the effects of Brexit. The conversation also touches on the potential entry into the Polish market and the advantages of digital banking platforms. Finally, it concludes with opinions on the European Central Bank's quantitative easing program and the need for rate adjustments.

What was the impact of the Czech National Bank's rate increase on the bank's net interest income?

• It was positive due to the bank's strong deposit base.

• It was negative due to increased costs.

• It had no impact.

• It led to a decrease in loan growth.

Why are real estate prices rising in the Czech Republic according to the transcript?

• Due to government intervention.

• As a result of low interest rates and limited investment options.

• Because of a strong capital market.

• Due to a high demand for shares.

How does the bank view the current state of the Czech housing market?

• As a stable market.

• As a significant bubble.

• As declining in value.

• As slightly inflated but not a bubble.

What is one reason for the lending growth in the Czech Republic?

• Declining real wages.

• Rising interest rates.

• Increasing government debt.

• Decreasing unemployment rates.

What effect does full employment have on the Czech economy?

• It reduces lending growth.

• It leads to higher unemployment.

• It increases real wages and household income.

• It decreases household income.

What is the bank's strategy regarding market entry into Poland?

• Avoid entering the Polish market.

• Develop digital platforms to reach clients.

• Invest heavily in physical branches.

• Focus on buying brick and mortar banks.

What is the bank's view on the ECB's quantitative easing program?

• It should be expanded.

• It should be stopped immediately.

• It should continue indefinitely.

• It should be reduced slowly.