Czech National Bank measure No. 130 / 1995 Coll.
Measures of the Czech National Bank setting a limit on the short position of banks vis-à-vis non-residents
Valid
Measures
Text versions:
25.07.1995
130
MEASURES
Czech National Banks
of 21 June 1995
setting a limit on the short position of banks vis-à-vis non-residents
Czech National Bank pursuant to § 36 (b) of the Act of the Czech National Council No. 6 / 1993 Coll., on the Czech National Bank, states:
Preliminary provisions
(1) The measure lays down a limit limiting the positions of banks vis-à-vis non-residents of the Czech Republic. This limit does not apply to the assets and liabilities of the organisational components of banks outside the Czech Republic.
(2) The aim of the measure is to limit the short open positions of banks vis-à-vis non-residents and thus avoid excessive inflows of short-term foreign capital to the Czech Republic through the banking system.
Definition of terms
For the purposes of this measure:
(a) the open short-term position of the bank vis-à-vis non-residents is the difference in the value of the short-term assets and liabilities vis-à-vis non-residents shown in the bank balance sheet;
(b) under the short-term assets and liabilities of the Bank vis-à-vis non-residents, the sum of such foreign exchange and crown assets and the sum of such foreign exchange and crown liabilities, the maturity of which does not exceed one year; the calculation of the values of those assets and liabilities shall be carried out in accordance with the procedure set out in the Annex;
(c) the bank's open-ended short-term position vis-à-vis non-residents is short if the value of the balance sheet short-term assets vis-à-vis non-residents is lower than the value of such liabilities vis-à-vis non-residents;
(d) the daily position is a position that exists at the end of the working day and is transferred to the next working day. The daily position shall be recorded on the form set out in the Annex and duly signed by the bank's responsible official shall be presented daily to the Czech National Bank. All transactions affecting those assets and liabilities shall be accounted for on the date of the transaction.
Limits
(1) If the bank's daily open-ended short-term position towards non-residents is short, it shall not exceed either of the following values:
(a) 30% of the total value of the balance sheet short-term assets vis-à-vis non-residents;
(b) CZK 500 million (hereinafter referred to as the limit).
(2) Compliance with this limit is without prejudice to the bank's obligation to comply with the limits for unsecured foreign exchange positions laid down in the measure of the Czechoslovak State Bank No 26 of 1 June 1992 in accordance with the requirements for prudent business of banks and the measure of the Czech National Bank No 15 of 17 June 1993 concerning the establishment of limits for the short-term position of banks.
Efficacy
This measure shall take effect on 3 August 1995.
Governor:
Ing. Tošovský v. r.
Annex
Daily statement of short-term assets and liabilities to non-residents
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Measures of the Czech National Bank No. 130 / 1995 Coll., establishing a limit on the short position of banks vis-à-vis non-residents |
|---|---|
| Regulation Type | Measures |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 25.07.1995 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Banking, Money
Finance
The regulation text is for informational purposes only.
Comments 0