CNB Provision on banking supervision on a consolidated basis

At its meeting today, the CNB Board approved a CNB Provision on Banking Supervision on a Consolidated Basis. Under this new regulation, commercial banks are obliged to inform the CNB by 30 September 1999 about their subsidiaries and other affiliates which together with the bank create a " consolidated unit". The risk ensuing for the banks from the activities of such affiliates will be incorporated into the calculation of their capital adequacy. The first data will be reported by banks according to the position as of 31 December 1999. The new regulation has been prepared in co-operation with the commercial banks and is directed at applying EU standards.

CNB - M.Švehla