The Financial Market Guarantee System received the Czech National Bank Notification on the inability of Sberbank CZ, a.s. to meet its obligations to entitled persons. The payout of deposit compensation will start within seven (7) business days.
Prague – On February 28, 2022, the Financial Market Guarantee System received1 the Czech National Bank Notification on the inability of Sberbank CZ, a.s. to meet its obligations to entitled persons under legal and contractual conditions. The expected payout amount is approximately CZK 28.5 billion
The Guarantee System will now pay the following three types of deposit compensation from the Deposit Insurance Fund:
- Basic, to natural and legal persons who were depositors of Sberbank CZ, a.s. as of February 28, 2022 (the record date), up to 100% of the sum of their deposits, up to the limit CZK 2,499,500 per depositor (an amount equivalent to EUR 100,000 at the exchange rate of CZK/EUR 24.995 published on February 28, 2022).
- Institutional, to selected institutions on whose accounts customer funds are deposited (payment institutions, small-scale payment services providers, electronic money institutions, small-scale electronic money issuers, investment firms, bailiffs), up to 100% of the deposits of each of their customers in accordance with client records, but no more (including the basic compensation due to the relevant customer) than an equivalent to EUR 100,000 per customer.
- Increased, to natural persons who prove2 their entitlement to receive increased deposit compensation.
By March 8, 2022 at the latest, the Guarantee System will set the start date, place and method for the payout of all compensation types. This information will be provided to the depositors of Sberbank CZ, a.s. via the Guarantee System’s website and through the media. In addition, before starting the payouts, the Guarantee System will send an information letter to everyone entitled to receive compensation containing information on the compensation payout method and on the compensation amount to which such person is entitled.
The Guarantee System must commence the payout of basic compensation for deposits no later than seven (7) business days from the record date, i.e. no later than March 9, 2022, the payment of institutional compensation no later than fifteen (15) business days from the record date, i.e. no later than March 21, and the payment of increased compensation no later than four (4) months from the record date, i.e. no later than June 28, 2022.
Payout will be performed by Komerční banka
The clients of Sberbank CZ, a.s. will receive their payments through selected branches of Komerční banka, a.s., with which the Guarantee System has signed an agreement on handling the deposit compensation payout. A list of branches where the deposit compensation payout is to take place will be shown here before the start of the payout. The payout of compensation will take place over a period of three years from the commencement of the payout of the relevant type of compensation (basic, institutional or increased).
For the purpose of the basic compensation payout, the clients of Sberbank CZ, a.s need not complete any form. All they have to do is to produce a valid identity document at a branch of Komerční banka and, in the case of natural persons who are entrepreneurs, their business licence. For the purpose of the payout of deposit compensation to legal persons, it is necessary to produce the original, an officially certified copy or an electronically signed valid extract from the Commercial Register or other public register not older than three (3) months, and an identity document for the individual representing such legal person. Non-cash payout of compensation by correspondence is also possible – send a written instruction (a completed “Compensation Transfer Request” form) with an officially certified signature by mail to: Komerční banka, a.s., CKB department 2192, Václavské náměstí 42, Prague 1, postcode 114 07.
There may be situations where a depositor cannot collect their deposit compensation in person. In such cases, the depositor may authorize someone else to collect the payout by granting a power of attorney – a sample power of attorney, a sample form to help with the completion of the “Compensation Transfer Request” form, and a complaint form can all be found here.
Unlike a request for basic compensation, a request for increased compensation must be submitted no later than April 28, 2022. All the information on who is eligible to request increased compensation for deposits, a sample request form, and other necessary information are all available here.
More information can be found on Czech National Bank web pages.
1 in accordance with Section 41d of the Act on Banks, No 21/1992, as amended
2 in accordance with Section 41ea and Section 41eb of the Act on Banks, No 21/1992, as amended
Back to the list of news