Frequently Asked Questions

What is the aim of the Crisis Resolution Fund?

Thanks to existence of the Crisis Resolution Fund, the Guarantee System disposes with financial means that can be used to prevent the bankruptcy of a financial institution that gets into difficulties and its resolution is in the public interest.

Contributions to the Crisis Resolution Fund are paid by banks, building savings banks, cooperative credit unions and selected investment firms.

The financial resources of the Fund may be used in situations when the stability of any financial institution is threatened, so that it is not necessary to end its operation and commence the payout of deposit compensation to its clients. The Crisis Resolution Fund is therefore one of the crisis resolution tools. Its use must be decided on by the Czech National Bank. The crisis resolution must be feasible, credible and in the public interest.

Is the Crisis Resolution Fund an independent fund or is it part of the Guarantee System?

The Crisis Resolution Fund is an independent accounting unit of the Financial Market Guarantee System. Like the Deposit Insurance Fund, it is not a legal entity. Only the Guarantee System is the legal entity and manages both these funds as sets of assets without legal personality. The Guarantee System also enters into contracts and transactions with third parties to manage effectively these funds.

What is the amount of financial resources that should be managed in the Crisis Resolution Fund?

The Crisis Resolution Fund should reach a minimum target level of 1% of covered deposits, i.e. CZK 36,5 billion, by end of 2024.