October 15 2004
On May 1 2004 the single bank licence concept was introduced into Czech law through the Banking Act (21/1992, as amended). As a result, foreign banks, as well as certain other financial institutions that have their registered seat in an EU member country, may conduct business through branch offices in the Czech Republic without a licence from the Czech National Bank. However, such banks must have obtained a licence from their country of domicile. Czech banks may operate in other EU countries pursuant to the same principle. One of the effects of this change is that customer deposits to branch offices of foreign banks operating in the Czech Republic on the basis of the single banking licence principle will be insured under the deposit insurance system applicable in their home country, unless they agree to an additional insurance of deposits with the Czech Deposit Insurance Fund.
For further information on this topic please contact Lucie Kubíková at Salans by telephone (+420 236 082 111) or by fax (+420 236 082 999) or by email (firstname.lastname@example.org).
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