90b6fa83-4527-4654-8a52-9349a5cbfb9920211116055633406naun:naunmdt@crossref.orgMDT DepositInternational Journal of Applied Mathematics and Informatics2074-127810.46300/91014http://www.naun.org/cms.action?id=3064319202131920211510.46300/91014.2021.15https://www.naun.org/cms.action?id=23306JindřiškaŠedováMasaryk University Faculty of Economics and Administration, Department of Law Lipová 41a, 602 00 Brno, Czech RepublicCompetition in the financial market puts currently new requirements for cost reduction on financial institutions. Available sources of cost reduction are seen i.a. in minimizing legal risks, which can reduce the uncertainty associated with enforcement and interpretation of legal acts, treaties and regulations in the field of contractual obligations. In this regard, banks in the Czech Republic are looking for new ways to reduce costs in the ongoing implementation of Basel II and preparation for implementation of Basel III. The central problem to which attention is focused is to ensure the required level of capital adequacy. This is conditioned i.a. by their risk management system. Capital adequacy may affect credit risk substantially. Besides others, the level of credit risk may be affected to a considerable extent by application of hedging instruments. This paper presents conclusions of the executed comparison of the existing and new private law provisions in the Czech Republic and, based on that, draws new opportunities and difficulties for banks in managing their credit risk and capital adequacy. The focus is only on the hedging instruments that may affect the activities of banks in a significant way.111620211116202137426https://www.naun.org/main/UPress/ami/2021/a122013-006(2021).pdf10.46300/91014.2021.15.6https://www.naun.org/main/UPress/ami/2021/a122013-006(2021).pdfP. Vinš, P. Rating. 1. Vyd. Praha: C. H. Beck, 2005. 109 s. ISBN 80- 7179-807_X. J. Bauerová, Nejen banky čeká další vlna regulací. /online/. Bankovnictví. 2009. [On-line]. Available at: http://bankovnictvi.ihned.cz/c1-38703210-nejen-banky-ceka-dalsi-vlnaregulace J. Jílek, Finanční rizika. Praha: Grada Publishing, 2000, p. 635. ISBN 80-7169-579-3. F.Dierick, F.Pires, M. Scheicher, K.G. Spitzer, „The Nwe Basel Capital Framework and its Implementation in the European Union“. Occasional Paper Series No 42, European Central Bank, 2005 10.1596/1813-9450-3556C. Stephanou, C., J. C. Mendoza, „Credit Risk Measurement Under Basel II: An Overwiew and Implementation Issues for Developing Countries“. Working Paper 356, World Bank, 2005 The Act on Banks (Act No. 120/2007 Coll, on banks) The Decree on prudential rules for banks, credit unions and investment firms. (Decree No 123/2007 Coll, on prudential rules for banks, credit unions and investment firms) R. Němec, „Zajištění závazků podle nového občanského zákoníku“. Právní rádce. 2011. [On-line]. Available at: http://pravniradce.ihned.cz/c1-52130100-zajisteni-zavazku-podlenoveho-obcanskeho-zakoniku. Hospodářské noviny IHNED ISSN 1213 – 7693. N. Kadlčáková, H. Sůvová, Dopady jednotlivých přístupů. Bankovnictví 16.5.2002, p. 16. [On-line]. Available at: http://www.cnb.cz/cs/verejnost/pro_media/clanky_rozhovory/media_20 02/cl_02_020516c.html Basel Committee on Banking Supervision: A new Capital Adequacy Framework. 1999. [On-line]. Available at: http://www.bis.org/publ/bcbs65.pdf. Basel Committee on Banking Supervision: International Governance of Capital Measurement and Capital Standards 2004. [On-line]. Available at: http://www.bis.org/publ/bcbs107.pdf. ISBN web: 92-9197-669-5 B. Havel, K. Smolíková, Zákon o obchodních korporacích s aktualizovanou důvodovou zprávou. Ostrava: Sagit 2012, p. 212-288. ISBN 978-80-7208-923-9. Financial Stability Institute. 2008 FSI Survey on the Implementation of the new capital adequacy Framework in non-Basel Committee member coutries. [On-line]. Available at: http://www.bis.org/fsi/fsiop2008.pdf?noframes=1 The Basel Committee response to the financial crisis: report to the G20.2010. [On-line]. Available at: : http://www.bis.org/publ/bcbs179.htm World Bank. Database Doing Business - Enforcing Contracts 2012, 2013: Available at: http://www.doingbusiness.org/ Civil Code (Act No. 89/2012 Coll., on civil code, section 1309) Civil Code (Act No. 89/2012 Coll., on civil code, section 1761) World Bank. Database Doing Business - Resolving Insolvency 2012, 2013: Available at: http://www.doingbusiness.org/ Bussines corporation act (Act No. 90/2012 Coll., on Bussines Corporation). World Bank. Database Doing Business - Getting Credit 2012, 2013: Available at: http://www.doingbusiness.org/