MRR, Universal bank

In line with its earlier declared programme of lowering minimum reserve requirements towards the EU standard, the CNB Board decided at its meeting today to cut the MRR ratio from 7.5% to 5% with effect from 28 January 1999. The Board stated that the significance of this instrument for monetary policy was limited, but the lowering of the ratio would create the preconditions for increasing banks' competitiveness.

The Board also assessed the proposals for resolving the situation at Universal banka a.s. presented by the bank and its shareholders. After evaluating these proposals and all other available information it stated that the legal foundation for revoking the banking licence had not been removed. Within the administrative proceedings started on 23 November 1998, the Board therefore decided to revoke the banking licence of Universal banka a.s.

CNB - M. Švehla