Deposit insurance Czech Republic


Up to EUR 100k Previously (since 2002), the insured amount was 90 % of deposits up to EUR 25,000; in 2008 it was increased to 100% of deposits up to EUR 50,000. Effective 2011, the limit was increased to EUR 100,000. Credit unions covered since 2006




Deposit insurance
In a market economy, banking regulation and supervision cannot, and should not, prevent each individual bank from failure. The Czech Republic has a Deposit Insurance Fund to ensure that any such termination of a bank´s activity has a minimal impact, especially on small clients. The Fund, whose scope of activities is laid down in the Act on Banks, has two main functions: a preventive function for banks (by reducing the risk of a run on the banks) and a compensatory function for depositors.

Using contributions from banks and branches of foreign banks, the Deposit Insurance Fund establishes financial reserves which are used to repay deposits in the event of the failure of a bank due to insolvency. All non-anonymous deposits of natural persons and legal entities held in Czech korunas and foreign currency are insured (natural persons must have given their first name, surname, address and date of birth or birth index number, and legal entities their commercial name, registered address and identification number). Deposits of banks, foreign bank branches and financial institutions are not covered, nor are "subordinated deposits".

The level of cover is calculated by summing all the insured deposits of each depositor with the bank. The amount paid under the scheme is equal to 100% of this sum up to a maximum of EUR 100,000 per depositor per bank. Persons stated in the Act on Banks, such as persons exercising control over the bank, persons having qualifying holdings in those persons and members of the management of those persons, persons having qualifying holdings in the bank and any persons under their control, hereafter members of the statutory body, members of the supervisory board, the bank senior officers and persons close to the members of these bodies, the bank senior officers and the persons exercising control over the bank; persons over which the bank exercises control (and persons convicted of offences relating to money laundering are not eligible for payment of compensation.

Foreign bank branches are not obliged to participate in the deposit-claims insurance scheme provided that they notify the Czech National Bank of their intention and at the same time demonstrate that the deposit-claims insurance scheme in which they do participate ensures eligible persons a level of protection at least the same as that required by European Community law.

The provisions of the Act on Banks relating to insurance of deposit claims shall apply to foreign bank branches which enjoy the advantages of the single licence in accordance with European Community law only if they make use of the possibility of supplementary deposit-claims insurance with the Deposit Insurance Fund.








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