Revoking the Banking Licence of COOP banka

On April 23, 1998, when the two-year legal period elapses, conservatorship in COOP banka, a.s. shall be terminated. During this period, Česká finanční, s.r.o., a CNB subsidiary, increased the initial capital of COOP banka by CZK 500 mil., and as a main shareholder of this bank, has appointed statutory authorities that will assume its management. The hitherto conservator has been appointed Chairman of the Board of Directors.

In the course of conservatorship, no suitable investor had been found for COOP banka who would ensure the continuation of its full-scale functioning on the Czech banking market. With regard to the overall situation of the bank, the CNB Bank Board, in agreement with the Ministry of Finance of the CR, decided to initiate administrative proceedings for revoking the banking licence of COOP banka, a.s., on April 22, 1998.

The bank's liquidity is sufficient for the disbursement of all deposits in compliance with the existing agreements concluded between COOP banka and its depositors. In the course of administrative proceedings, the bank shall continue operations in all of its offices, and the bank's obligations shall be fully honoured even after the administrative proceedings have been finished.

CNB - M. Švehla