CNB NOTIFICATIONS BASED ON WHICH THE GUARANTEE SYSTEM COMMENCED THE DEPOSIT COMPENSATION PAYOUT

11/10/2016 |CNB NOTIFICATION ON THE INABILITY OF ERB BANK, A.S. TO MEET ITS OBLIGATIONS TO ELIGIBLE PERSONS UNDER STATUTORY AND CONTRACTUAL CONDITIONS

On 11 October 2016, in accordance with Article 41d(1) of Act No 21/1992, on banks, as amended (hereinafter also the “Act on Banks“), the Financial Market Guarantee System (hereinafter also the “Guarantee System“) received the Czech National Bank Notification (hereinafter also the “CNB Notification“) on the inability of ERB bank, a.s. (hereinafter “ERB bank“) to meet its obligations to eligible persons under statutory and contractual conditions.

The Guarantee System will pay the following types of deposit compensation from the Deposit Insurance Fund:

  • Basic, to natural and legal persons who were depositors of ERB bank as at the record date, up to 100% of the sum of their deposits, but no more than CZK 2,702,000 per depositor (the equivalent of EUR 100,000 at the exchange rate of CZK 27.02/EUR published by the CNB on 11 October 2016; the exchange rate list for 11 October 2016 can be found here ).
  • Institutional, to selected institutions on whose accounts the funds of their customers 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 the records of the institutional client, but no more (including the basic compensation due to the relevant customer) than CZK 2,702,000 per customer.
  • Increased, to natural persons who, in accordance with Article 41ea and Article 41eb of the Act on Banks, as amended, prove their entitlement to receive increased deposit compensation. More information on so-called ‘temporary high balances’ can be found here.