News 2010

Prague, 2 December 2010 – The events of 2010 significantly changed the face of the system of European deposit insurance. With the emphasis put on increasing the credibility of the European banking system, growing importance is given to protecting the deposits of the clients of banking institutions and the availability of deposits when a bank goes bankrupt. The Deposit Insurance Fund (DIF), and all of the institutions concerned, worked hard during the year to reconstruct the deposit insurance system. Thanks to the efforts put in, the Czech Republic is now among the best-prepared countries. More...

Prague, 10 November 2010 – According to the amendment to the Act on Banks, in relation to the European Parliament and Council Directive enacted on 11 March 2009, the period for the disbursement of compensation for insured deposits will be shortened as of 31 December 2010, from the current three months to 20 business days. In order to be able to ensure such a thing, the Deposit Insurance Fund (DIF) must use an entirely new information system supporting deposit compensation disbursement (Povynal), which will automate a major part of the process. The system covers all possible scenarios, including potential errors in records. More...

Prague, 13 September 2010, The objective of the visit is the joint work of the expert group and DIF representatives on harmonising and specifying the methodology of evaluating “The Fundamental Principles of the Efficient Functioning of Deposit Insurance Systems”, drawn up by the International Association of Deposit Insurers) and the Basel Committee of Banking Supervisors). The mission is a part of the international consultation process, which is to ensure that the evaluation methodology across all of the developed countries of the world that have a deposit insurance system is sufficiently robust, comprehensive, and consistent. More...

Prague, 13 June – The European Commission is proposing a package of measures to enhance the protection of bank account holders, small investors, and insurance company clients. According to the Commission, the main goal is to prevent another crisis and to restore trust in financial services. More...

Prague, 6 May 2010 – The Deposit Insurance Fund will obtain performance of 1.2 billion crowns from the assets of the bankrupt Union banka. The High Court in Olomouc denied the appeal of one of the creditors against the ruling of the Regional Court in Ostrava of last October. This removed the obstacle preventing the Deposit Insurance Fund from collecting its receivable from the settlement of relations from the bankrupt Union banka. The decision is final. More...

Prague, 3 May 2010 – The International Association of Deposit Insurers (IADI) is announcing a Week of Deposit Insurers for the fifth time. This year, it will run from 3 to 9 May and its main topic will be “Funds’ Contribution to Financial Stability”. Traditionally, the Deposit Insurance Fund is the Czech institution to participate in the event. Incidentally, the Fund organised a conference of the IADI member organisations in Prague at the beginning of the year, concerning the topic “Coping with the demands of a shortened deposit compensation disbursement period”. More...

Prague, 22 April 2010 – At its meeting today, the Senate approved the government’s proposal of the amendment to the Act on Banks, which is significantly changing the conditions of the functioning of the Deposit Insurance Fund (DIF). The changes consist, in particular, of an increase in the maximum deposit insurance limits, the shortening of the period for the commencement of the disbursement of compensation for the insured deposits, and an increase of the contributions of the insured financial institutions. The amendment now only awaits the President’s signature. More...

Prague, 1 April 2010 – On 1 April 2010, 15 years have passed since the launch of the work of the Deposit Insurance Fund (DIF) office. In that time, the Deposit Insurance Fund and the domestic banking system have come a long way and undergone unbelievable development. During that time, it has gained experience of which only a few European deposit insurance systems can boast. The outcome of the development to this point is the fact that the Czech banking sector, and with it the deposit insurance system, are among the most stable in Europe. More...

Prague, 31 March 2010 – The Deposit Insurance Fund has concluded its tender for the supplier of a new information system that is to ensure faster and more flexible communication among the entities involved in the deposit insurance system. The main objective of the implementation of the new system is to accelerate the disbursement of the compensation of the insured deposits in the event of the insolvency of a domestic bank, cooperative savings bank, or building society. More...

Prague, 11 March 2010 – The Chamber of Deputies approved the government’s proposal of an amendment to the Act on Banks, which includes innovations in the functioning of the Deposit Insurance Fund. In line with the European Directive, which should start applying by 1 January 2011, and whose transposition to the Czech legal system is to be assured by the said amendment of the Act on Banks, is, above all, the increase of bank deposit insurance limits and the shortening of the period for the commencement of the disbursement of compensation for the insured deposits. More...