Revocation of licence of PDW credit union

A final decision to revoke the licence of Úvěrní družstvo PDW, Praha has been issued. As part of its state inspection activities, the Czech National Bank has identified shortcomings in the activities of this credit union that were of such nature and seriousness that revocation of licence was the only possible solution.

For example, the credit union did not have sufficient security on its loans and sufficient monitoring of transactions, provided services in conflict with its credit union licence, did not perform internal audit and violated its rules of procedure.

Úvěrní družstvo PDW, Praha had 367 members at the end of 2009 and its assets totalled about CZK 62.8 million.

Revocation of the licence of České národní spořitelní družstvo in June 2007 was the last time the CNB revoked the licence of a credit union. The reason was serious shortcomings in the credit union’s activities.

At the end of September 2009, the entire credit union sector had 44 036 members, with total assets exceeding CZK 16.8 billion. As of today, there are 16 credit unions with a valid licence.

Marek Petruš
CNB spokesman