CNB issues measure prohibiting ERB bank to provide loans and accept deposits
The Czech National Bank has issued a preliminary measure prohibiting ERB bank, a.s. to provide loans and accept deposits from the public. In addition, ERB bank may only acquire zero-risk assets, with the exception of assets necessary to ensure day-to-day operation and with the exception of depositing funds in banks which have been granted a licence in accordance with the Act on Banks or in banks having their registered offices in Member States of the European Union.
"As the competent financial market supervisory authority, the CNB has assessed the situation in ERB bank after a thorough evaluation and has decided to issue a preliminary measure and to modify the rules for the bank’s operation for the time being in such a way as to prevent irrecoverable losses arising during administrative proceedings if its financial situation worsens,” said CNB spokesman Tomáš Zimmermann.
The CNB is not entitled to provide any other information about the matter until the administrative proceedings against ERB bank are closed by a final and conclusive decision.
Tomáš Zimmerman, CNB spokesman
Additional information
In a preliminary measure issued on 8 March 2016, the CNB ordered ERB bank to refrain from providing loans and accepting deposits from the public and also to refrain from behaviour leading to purchasing assets with an assigned risk weight higher than 0% pursuant to Articles 114–134 of the Regulation, with the exception of assets necessary to ensure day-to-day operation and with the exception of depositing funds in banks that have been granted a licence for their activities under Article 1(1) of the Act on Banks or in banks having their registered offices in Member States of the European Union.