• Banks and credit unions
  • Financial market supervision

ERB bank – Q&As

9 Mar 2016

The Czech National Bank has issued a preliminary measure prohibiting ERB bank, a.s. to provide loans and accept deposits from the public.

How does this measure affect clients?

According to the preliminary measure, the bank cannot provide loans and accept deposits from the public. It 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.

How and when can clients access their deposits?

Deposit payments are not limited in any way by the preliminary measure.

Why can’t the CNB provide more detailed information about the current situation in a particular financial institution?

The CNB is not authorised to provide detailed information about any findings it makes when supervising a particular financial market entity, as it is bound by the confidentiality requirements stipulated by law. In the case of banks, the confidentiality requirement is laid down in Article 25a of the Act on Banks, according to which persons exercising banking supervision must maintain confidentiality regarding all information acquired in the context of the performance of their occupation, employment or position.

If the CNB is subject to confidentiality requirements, why then has it disclosed the content of the preliminary measure? Isn’t that contradictory?

The CNB has disclosed the content of the preliminary measure because the measure directly affects the bank’s clients and the CNB wants to alert them to complications that may arise during the further provision of services by the bank to its clients. Clients may obtain detailed information from ERB bank.
 

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