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.
At the end of 2010, a total of 17 banks, 5 building societies, and 14 savings cooperatives were participating in the deposit insurance system, having paid contributions of CZK 2,618 million into the reserve fund in 2010, which is approximately 700 million more than in the same period of 2009.
The volume of the financial reserves was positively influenced by an increase in the regular contributions of the insured institutions into the reserve fund as at 1 July 2010, and the changed frequency of contribution payments, from annually to quarterly, and also the extraordinary collection of a part of the account receivable that the Deposit Insurance Fund has from the bankrupt Union Banka. In the second partial distribution, the Deposit Insurance Fund received performance in the amount of 1.2 billion crowns. At the end of 2010, the Deposit Insurance Fund had at its disposal CZK 18.112 billion.
"As at the end of January 2011, the financial reserves of the Deposit Insurance Fund amounted to more than one-half of the statutorily set amount of financial reserves," says Renáta Kadlecová, Managing Director of the Deposit Insurance Fund. "Once the target amount is reached, which we expect to achieve within approximately 7 years, the volume of the contributions of the insured institutions should drop to a minimum maintenance level," adds Renáta Kadlecová.
The number of insured institutions has stabilised in recent years. Due to the withdrawal of licences by the Czech National Bank, only two savings cooperatives discontinued their participation in the deposit insurance scheme in 2010 – Úvěrní družstvo PDW, Praha and Vojenská družstevní záložna.
As at the end of 2010, bank deposits in the Czech Republic are insured in full up to the equivalent of EUR 100,000, separately for each financial institution. Should any domestic bank, building society, or savings cooperative find itself to be insolvent, the Deposit Insurance Fund would take over responsibility for protecting clients' deposits and for paying them out in a timely fashion.
For an overview of the institutions participating in the deposit insurance scheme and for other useful information, see the website of the Deposit Insurance Fund at www.fpv.cz.
Publikováno: 20.2.2011
