About deposit insurance and its history

The Deposit Insurance Fund was established in 1994 (pursuant to Act No 156/1994 Coll.) to provide stability on the financial market and to institutionally cover the newly established deposit insurance system, the need for which was subsequently more than confirmed. The main responsibilities of the Deposit Insurance Fund ranged from the collection of contributions and their management to the payout of deposit compensation when needed. These responsibilities were taken over by the Guarantee System on 1st January 2016 and the Deposit Insurance Fund became an independent accounting unit of the Guarantee System.

All banks, building societies, and credit cooperatives with their registered office in the Czech Republic and branches of banks with their registered office outside EU are obliged by law to contribute to the Deposit Insurance Fund (list of the contributing institutions). If the Czech National Bank announces that any of these institutions is unable to meet its commitments, or a court decides on the bankruptcy of such a financial institution, the Guarantee System pays 100% of the deposits, including interest, from the Deposit Insurance Fund to all natural persons and legal entities, up to the equivalent of EUR 100,000. In addition, the new legislation enables clients to be granted even higher compensation in specific cases. The payout of the basic compensation (up to EUR 100,000) must be commenced within 7 business days from the record date.

More detailed information about deposit insurance can be found on the pages: What is insured, Where is it insured and How much is insured.

History of the Deposit Insurance Fund

During its existence, the Deposit Insurance Fund paid out compensation for insured deposits in 22 cases in the form of 18 regular and 4 additional compensation payments to the depositors of 12 banks and 5 credit cooperatives, paying out an aggregate of approximately CZK 42.1 billion. In total, the Fund paid compensation to more than 300,000 clients.



(April) The Deposit Insurance Fund office opens


The collapse of the first bank since the establishment of the Fund (Česká banka, a.s.)


Insurance coverage is extended to deposits held in foreign currencies and the minimum limit is increased from CZK 400,000 to EUR 25,000


The CNB declared Union banka insolvent, the Fund commences the largest compensation payout in its history (CZK 12.5 billion, 130,000 clients)


Integration of credit cooperatives into the deposit insurance system


The 10% co-insurance is abolished and the maximum limit increased from EUR 25,000 to EUR 50,000


The start of preparations for the new, accelerated system of deposit compensation payout drafted by the European Commission


Increase of the insurance limit to EUR 100,000; reduction in the deadline for payout commencement to 20 business days


Payout of deposit compensation of the cooperative credit union Vojenská družstevní záložna commenced


Payout of deposit compensation of the cooperative credit union UNIBON, spořitelní a úvěrní družstvo commenced


Česká spořitelna, a.s. and GE Money Bank, a.s. (from 1st May 2016 under the name MONETA Money Bank) become new payout banks


Payout of deposit compensation of the cooperative credit union Úvěrní družstvo PDW, Prague commenced


Payout of deposit compensation of the cooperative credit union Metropolitní spořitelní družstvo, in liquidation commenced. Almost 14,000 clients were compensated in a total amount of more than CZK 12 billion.


20 years of existence of the Deposit Insurance Fund


Transformation of the Deposit Insurance Fund into the Financial Market Guarantee System


(1st June) Reduction of the deadline for payout commencement from 20 business days to 7 business days