Featured Product

    Czech Republic Decides Not to Join Banking Union

    January 11, 2021

    The ESMA Board of Supervisors, on December 16, 2020, appointed Vojtěch Belling, the Executive Director of CNB’s Financial Regulation and International Cooperation Department, as one of two new members of the ESMA Management Board, beginning from January 01, 2021. Mr. Belling is the first member of this authority from the Central and Eastern Europe. Additionally, CNB announced that a study assessing indicators in the domestic banking sector revealed that Czech Republic would not benefit from joining the Banking Union in the current conditions. The study arrived at the same conclusion when assessing the impact of Banking Union entry on the supervision of domestic banks. In this regard, CNB welcomes the study findings, which lead to the conclusion that "for countries outside the euro area, joining the Banking Union would evidently be more advantageous if tied to the decision to adopt the euro."

    CNB, together with the Ministry of Foreign Affairs and the Office of the Government of the Czech Republic, has assisted the Ministry of Finance in the impact study on participation or non-participation of the Czech Republic in the Banking Union. CNB also opined that participation of the Czech Republic in the Banking Union cannot be recommended at present due to the continued non-completion of the Banking Union architecture and the insufficient experience with its practical application, especially in the case of participating countries outside the euro area. Another reason is the absence of a need for access to the common funds of the Banking Union for the resolution of credit institutions in the Czech Republic. In the event of the Czech Republic participating in the Banking Union, domestic banks would contribute to financing the resolution of banks in all the Banking Union member countries, with which they would share the capacity of the Single Resolution Fund. If the current condition of the domestic banking sector remained the same, Czech credit institutions would probably also be net contributors to the Single Resolution Fund, although the Czech banking sector remains more resilient and stable than those in many other EU member states and Banking Union countries. Thus, the country would not benefit from joining the Banking Union in the current conditions. 

     

    Related Links

    Keywords: Europe, Czech Republic, Banking, Banking Union, Resolution Framework, ESMA, CNB

    Related Articles
    News

    PRA Proposes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    PRA proposed rules (in CP12/21) for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies that have been approved or designated in accordance with Part 12B of the Financial Services and Markets Act 2000 (FSMA).

    June 21, 2021 WebPage Regulatory News
    News

    ECB Extends Leverage Ratio Relief for Banks Until March 2022

    ECB Banking Supervision announced that euro area banks it directly supervises may continue to exclude certain central bank exposures from the leverage ratio until March 2022.

    June 18, 2021 WebPage Regulatory News
    News

    OSFI Consults on Treatment of Credit Valuation Adjustments

    OSFI decided to increase the Domestic Stability Buffer from 1.00% to 2.50% of total risk-weighted assets, with effect from October 31, 2021.

    June 18, 2021 WebPage Regulatory News
    News

    HKMA Requires Banks to Submit Plans for Fintech Adoption

    HKMA is requesting banks to participate in a tech baseline assessment, which forms part of the HKMA Fintech 2025 strategy.

    June 18, 2021 WebPage Regulatory News
    News

    OSFI Consults on Operational Risk Capital Data Management Expectations

    OSFI published two documents to consult on the management of operational risk capital data for institutions required, or for those applying, to use the Basel III standardized approach for operational risk capital in Canada.

    June 18, 2021 WebPage Regulatory News
    News

    NGFS on Addressing Financial Stability Issues from Biodiversity Loss

    The NGFS Study Group on Biodiversity and Financial Stability published a Vision paper exploring the case for action in addressing the financial stability concerns arising from biodiversity loss.

    June 18, 2021 WebPage Regulatory News
    News

    ACPR Publishes CREDITIMMO Version 2.3.0 Taxonomy for Banks

    ACPR published the final version of CREDITIMMO 2.3.0 taxonomy for the decree of October 31, 2021.

    June 18, 2021 WebPage Regulatory News
    News

    EC Prolongs Italian Guarantee Scheme for Non-Performing Loans

    EC, has approved, under the EU State Aid rules, the fourth prolongation of the Italian guarantee scheme to facilitate the securitization of non-performing loans.

    June 18, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Temporary Collateral Easing Measures

    ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.

    June 17, 2021 WebPage Regulatory News
    News

    EIOPA Releases Report on Artificial Intelligence Governance Principles

    EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.

    June 17, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7128