Agreement on the exercise of banking supervision between the Czech Republic and Austria

On 12 October 2001, an agreement on co-operation in the exercise of banking supervision was signed between the Czech National Bank and the Austrian Federal Ministry of Finance. This is the first banking supervision agreement the Czech National Bank has concluded with a partner institution of an EU member state. The agreement sets forth the framework, range and methods of co-operation between both parties in handling the applications of entities from the partner country for a banking licence or prior consent to acquire voting shares in cases where such consent is required pursuant to the respective Czech and Austrian laws. The agreement also stipulates the procedures for overseeing banks operating in both countries. There are six Austrian-owned banks and two branches of Austrian banks in the Czech Republic, accounting for 23.8% of the total assets of the banking sector.

The agreement is based on the principles applied between EU countries in the oversight of banks that operate in a number of countries. In compliance with the Act on Banks, the Czech National Bank is allowed to share information about entities operating or intending to operate in the territory of a respective state with banking supervisory authorities or similar institutions of other countries.

The agreement was signed by Pavel Racocha, Bank Board member and Chief Executive Director, and Věra Mašindová, Executive Director of the Banking Supervision Policy Department for the Czech National Bank and Alfred Lejsek, General Director of the Federal Ministry of Finance for the Austrian side.

Alice Frisaufova, CNB spokesperson