News
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17.04.11
The Position of the Deposit Insurance Fund on the Initiative of European Member of Parliament Z. Roithová
Prague, 17 April 2011 – In response to the recent news from the European Parliament, the Deposit Insurance Fund expresses its bewilderment with respect to the activity of the European M. P. Zuzana Roithová, thanks to whose activity the Internal Market Committee adopted an amendment to a European Directive containing a proposal for another significant shortening of the period for commencing the payout of deposit compensation, from the present 20 business days to a mere 7 business days.
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16.03.11
The Deposit Insurance Fund Will Take Care of the Clients of Foreign Banks
Prague, 16 March 2011 – Clients of foreign banks can again rest a little more easily. The Czech Republic joined another 15 European signatories in signing the international Memorandum of Understanding on cross-border cooperation between deposit insurance schemes. In the event of the bankruptcy of a bank, clients will no longer have to travel abroad to obtain their compensation.
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20.02.11
Banks Paid a Total of CZK 2,618 Million into the Deposit Insurance Fund in 2010
Prague, 20 February 2011 – Thanks to the significantly increased inflow of funds in the last twelve months, the Deposit Insurance Fund had CZK 19 billion at the end of January 2011.
The Deposit Insurance Fund in Brief
- The Deposit Insurance Fund (DIF) was established pursuant to Act No. 156/1994 Coll., amending and supplementing Act No. 21/1992 Coll., on Banks, as amended, supplementing Act No. 513/1991 Coll., the Commercial Code, as amended, and Act No. 328/1991 Coll., on Bankruptcy and Composition, as amended.
- By law, deposits with banks, building societies, and cooperative savings banks are insured
- The deposits of both natural persons and legal entities, i.e., individuals and companies, are insured, both in Czech crowns and foreign currencies, and including interest
- Deposits kept at the branches of foreign banks are not insured through the DIF. Deposits with those branches are insured in the deposit insurance system in the country in which the parent bank is based.
The main role of the Deposit Insurance Fund is to protect bank deposits and enhance trust in the banking system in a time of economic turbulence.
Since its establishment, the Deposit Insurance Fund has paid compensation for insured deposits to some 300,000 clients, amounting to more than 25 billion crowns. The payments concerned the clients of the 12 banks that went bankrupt between 1995 and 2003.
Currently, the Deposit Insurance Fund guarantees deposits in the volume of CZK 2.1 trillion, deposited with 36 insured financial institutions, which paid contributions to the Fund amounting in total to CZK 1.914 billion crowns last year.
