Measures of the Czech National Bank No 24 / 1994 Coll.
Measures taken by the Czech National Bank laying down the formalities for the application for authorisation to operate as a bank, as well as the minimum amount of capital which is a condition for the granting of authorisation and the requirements for the application to operate as a bank to a branch of a foreign bank
Valid
24
MEASURES
Czech National Banks
of 12 January 1994
laying down the formalities for an application for authorisation to act as a bank, as well as the minimum amount of capital which is a condition for authorisation, and the requirements for an application to act as a bank to a branch of a foreign bank
The Czech National Bank provides pursuant to § 4 and 5 of Act No. 21 / 1992 Coll., on Banks:
Establishment of a bank
The condition for granting permission to operate as a bank is the minimum amount of the capital, which is CZK 500 000 000, deposited in an account opened for that purpose with the Czech National Bank or with the approval of the Czech National Bank with another bank operating in the Czech Republic.
(1) The application for authorisation to operate as a bank submitted to the Czech National Bank must include:
(a) the justification for the request, with an emphasis on the merits of the creation of the new bank, indicating the expected conditions of the bank's activities and its expected profitability;
(b) the draft statutes of the Bank, including, outside the terms laid down, (1) the method of exchange of shares into owners for shares in their names or for shares without voting rights;
(c) data on founders, if they are natural persons;
(d) information on the founders, if they are legal persons;
(e) information on the size and structure of the bank's capital, the possibility of acquiring additional capital from the bank's founders or the extension of capital by other means;
(f) a list of the planned activities, including the chronological arrangements for the start and start of those activities, indicating the expected volume;
(g) a three-year business plan for the activities envisaged under Article 2 (1) (f) of this measure;
(h) a strategy for the development of individual banking activities, indicating how they are reflected in the balance sheet and the profit and loss account;
(i) information on the organisation of the bank;
(j) the names of at least three proposed managers of the Bank responsible for its management with at least three years' experience as a leader in the Bank, the functions to which they are proposed, their CVs, the conditions for the function to be performed, the criminal record of the Czech Republic, the confirmation of the integrity of others, the positions in other companies' bodies, the relationship with other banks' or financial institutions' staff, the completion of professional training and training courses for the management areas to which they are considered, accompanied by the results and the evaluation of such training and traineeships, a list of the activities so far carried out, including an indication of the length of experience in the management at a comparable level of decision-making and management powers and competencies following the proposed function; the CV shall include reliable references to proposed staff from at least two independent listed banking sources;
(k) the organisation and objectives of the internal control system, the position and tasks of the internal control function, the position and role of the internal audit function and the measures to ensure the independent and objective functioning of those services.
(2) Data on the founders of the Bank, if natural persons, must include:
(a) name and surname;
(b) the date and place of birth;
(c) nationality, nationality,
(d) permanent residence address,
(e) a CV with an emphasis on the employment carried out;
(f) an extract from the criminal record of citizens of the Czech Republic and a confirmation of integrity with other founders;
(g) an overview of the ownership and financial situation of the founders and an officially validated source of funds deposited into the bank, the extent and form of the assets deposited into the bank;
(h) the participation of the founders, in particular in companies or cooperatives in which the founders share more than 10% of the capital or are represented in their management or statutory bodies, or in other forms of business, where appropriate;
(i) an overview of the banks where the founders have accounts;
(j) kinship with persons employed at the time of application in cash or financial institutions or similar institutions.
(3) Data on founders, if they are legal persons, must include:
(a) an extract from the Commercial Register or a notarized copy of the instrument of incorporation, or, where appropriate, other documents evidencing its formation, place and date of establishment, the activity it deals with, a list of natural or legal persons whose interest in the assets of the legal person exceeds 10%;
(b) in the case of a public limited company, the lowest and highest price of the company's shares in at least the last five years, including the last valuation; where the company has existed for less than 5 years, since its existence,
(c) evidence of the results of the company's management over the last three years (at least balance sheet and profit and loss account), including audit reports and, where applicable, supervisory boards and management reports submitted to the general meeting of shareholders, and, where the accounting system in the State where the founding bank is located is different from that used in the Czech Republic, an explanation of these differences,
(d) the origin of the source, the size and form of the assets deposited in the bank; the data must clearly show the company's continuing ability to generate resources to secure further deposits in the capital of the bank being set up; data on the origin of the source of the assets placed in the bank are the balance sheet, profit and loss account, documents on available funds or the ownership situation of the founder (e.g. current account statement),
(e) basic data on companies, cooperatives in which the founders participate in their own resources and this proportion accounts for more than 10% of the capital of those companies or cooperatives, or other legal forms of business activity,
(f) an overview of the banks where the founders have accounts.
(4) The business plan of the Bank, broken down into quarters in the first year of its activity, shall contain, to the minimum extent possible, data on the publication of the financial statements:
(a) a balance sheet broken down by the Ministry of Finance for banks;
(b) a statement of profits and losses, broken down for the banks by the Ministry of Finance.
(5) The strategy for the development of individual banking activities includes:
(a) the intention of the bank to provide loans and obtain deposits, in particular in terms of the nature of the clients to which the bank will focus (natural or legal persons, small, medium, large companies, etc.), or, where appropriate, the economic, territorial sector and the type and extent of the loans and deposits;
(b) the amount of funds which the Bank intends to raise from banks or other financial institutions in the Czech Republic or abroad;
(c) the intention of the bank to trade in domestic and foreign securities (investment in securities for its own account, trading for its own account and for the account of the client); the participation of the Bank in the issue of shares and the provision of related services,
(d) the intention of the bank to develop domestic and foreign payment transactions and to develop other operational services;
(e) the intention of the bank to trade in foreign exchange values;
(f) the bank's intention to provide guarantees;
(g) internal measures of the Bank aimed at limiting the risk exposure of assets or liabilities to the client or, where appropriate, to a related group of clients.
(6) Information on the organisation of the Bank shall in particular include information on:
(a) the structure of the bank and its headquarters;
(b) the activities of individual data and organisational units of the Bank, the number of employees, the division of competences among the managers of the Bank,
(c) branches which the Bank intends to establish, their number and their integration into the organisational structure of the Bank, and their management and control arrangements;
(d) the organisation and management of the Bank's information system, in particular the creation, processing, preservation, transmission and protection of data and information, and the methodological, technical and programming means used in the Bank's information system;
(e) the organisation of foreign exchange trading,
(f) organisation of the decision-making process in the bank;
(g) the organisation of the liquidity management of the bank;
(h) banking buildings and facilities where ownership of these values is already available.
Establishment of a branch of a foreign bank
(1) The request by a foreign bank wishing to establish its branch in the Czech Republic must contain the following elements and documents:
(a) documents submitted by the statutory authority of a foreign bank;
(b) data on a foreign bank setting up a branch in the Czech Republic;
(c) a list of the activities which the branch intends to carry out, including the chronological arrangements for the start and start of those activities, indicating the expected volume;
(d) the business plan for the first three years for the activities of the branch envisaged under Article 3 (1) (c) of this measure;
(e) the branch's strategy for developing individual banking activities, indicating how they are reflected in the balance sheet and the profit and loss account;
(f) information on the organisation of the branch;
(g) the names of the managers of the branch responsible for its management, having at least three years' experience as a manager in the bank, the functions in which they are proposed, their biographies, the assumptions for the function performed following the previous senior position in the money business, the confirmation of integrity, the position in other companies, the relationship of relatives with managers or members of statutory bodies of other banks or financial institutions in both domestic and foreign countries; the CV shall include reliable references to proposed staff from at least two independent listed banking sources;
(h) the organisation and status of the internal control system applicable within the Bank and the branch, the tasks of the Internal Control Unit, the internal audit status and the measures to ensure the independent and objective functioning of those services;
(i) the documents annexed to the application.
(2) The documents submitted by the statutory authority of a foreign bank include:
(a) the justification for the intention to establish a branch of a foreign bank (hereinafter referred to as "branch") in the Czech Republic with an emphasis on the merits of the establishment of a branch;
(b) a decision by the competent authority of the Bank on the intention to establish a branch of the Bank in the Czech Republic;
(c) a binding declaration by the statutory authority of a foreign bank on taking responsibility for the settlement of all the assets and liabilities of the branch or, at the request of the Czech National Bank, a binding declaration by that authority on the transfer of funds of a foreign bank to the Czech Republic in order to settle the liabilities of the branch, within the time limit and under the conditions laid down by the Czech National Bank; The Czech National Bank may require the transfer of funds before the operation of the branch of a foreign bank, up to the amount of the funds referred to in § 1,
d) commitment to the banking supervision of the Czech National Bank regularly
1. the Bank's annual report,
2. a half-yearly up-to-date calculation of the capital adequacy of the founding bank, certified by the bank supervision of the bank's country of registered office;
(e) a statement of the bank supervision of the country of the foreign bank's registered office (hereinafter referred to as "the bank")
1. the creation and existence of a bank in accordance with the laws of the country of the bank's registered office;
2. on the application of banking supervision to branches of foreign banks including branches in the Czech Republic,
3. on the provision of timely information to the banking supervision of the Czech National Bank on the envisaged supervisor of the branch's activities in the Czech Republic in order to coordinate joint action with the banking supervision of the Czech National Bank in the supervision of the branch,
f) commitment to the banking supervision of the country of the foreign bank's seat to inform the banking supervision of the Czech National Bank of changes
1. in the capital adequacy and liquidity of the bank and other facts which could lead to a deterioration of the bank's ability and its branch abroad to meet its obligations;
2. in the rules of prudent business of the bank and other conditions that significantly affect the activities of the bank and its branch abroad;
3. the concept and security of banking secrecy in force in the country of the foreign bank's registered office, the relationship of banking secrecy to branches of the bank abroad,
4. in the deposit guarantee scheme in the country of the bank's registered office.
(3) Data on a foreign bank setting up a branch in the Czech Republic include:
(a) a notarized creation document (extract from the Commercial Register) which must contain the name of the bank and its legal form, address, place and date of establishment, the activity it deals with, the natural and legal persons whose share of the bank's capital exceeds 10%;
(b) for public limited-liability companies, the lowest and highest price of the bank's shares over the last five years, including an indication of the current share price;
(c) evidence of the results of the bank's management over the last three years, including the auditors' reports, or the supervisory board and the management reports submitted to the general meeting of shareholders, and where the accounting system in the State where the founding bank is located is different from that used in the Czech Republic, an explanation of these differences.
(4) The business plan of the branch, broken down into quarters in the first year of its activity, shall contain, to the minimum extent possible, data on the publication of the accounts:
(a) a balance sheet broken down by the Ministry of Finance for banks;
(b) a statement of profits and losses, broken down for the banks by the Ministry of Finance.
(5) The branch's strategy for developing individual banking activities includes:
(a) the amount and form of financial resources provided to the branch establishing the bank;
(b) the intention of the branch to provide loans and obtain deposits with the characteristics of the types of clients to which the branch will focus (natural or legal persons, small, medium, large companies, etc.), or, where appropriate, the economic, territorial sector and the type and extent of loans and deposits;
(c) the amount of resources the branch intends to obtain from banks or other institutions in the Czech Republic or abroad;
(d) the intention of the branch to trade in domestic or foreign securities (investment in securities for its own account, trading on its own account and on the account of the client), participation of the branch in the issue of shares and the provision of related services;
(e) the intention of the branch to develop domestic and foreign payment transactions and to develop other operational services;
(f) the intention of the branch to trade in foreign exchange values;
(g) the intention of the branch to provide guarantees;
(h) internal arrangements of the branch aimed at limiting the risk exposure of assets or liabilities to the client or, where appropriate, to a group of connected clients.
(6) Information on the organisation of the branch shall in particular include information on:
(a) a branch centre describing the relationship between the branch and the parent bank in terms of competence and responsibility in deciding and implementing banking operations;
(b) the activities of the different departments and organisational units of the branch, the number of employees, the division of competences among the managers of the branch,
(c) the organisational units which the branch intends to establish, their number and their integration into the organisational structure of the bank and their management;
(d) the organisation and management of the branch's information system, in particular the creation, processing, preservation, transmission and protection of data and information, and the methodological, technical and programming means used in the branch's information system;
(e) the organisation of foreign exchange trading,
(f) organisation of the decision-making process;
(g) banking buildings and facilities, if already available, ownership of these values.
(7) In the annex to the application, the Bank shall submit:
(a) rules on the prudent business of banks applied in the country of the bank's registered office vis-à-vis a branch abroad;
(b) laws defining the scope and responsibilities of the banking supervisory authorities, regulatory procedures applied to the level of banking supervision of the bank's head office vis-à-vis banks, or other legal standards governing or affecting the activities of banks;
(c) the legal rules governing the deposit guarantee scheme in the country of the founding bank's registered office, indicating whether it also applies to a branch in the Czech Republic.
General, transitional and final provisions
In addition to the information set out in Sections 2 and 3, the Czech National Bank has the right to request in writing from the petitioners of the request to establish a bank or branch of a foreign bank other documents or information to supplement the request.
(1) All documents shall be submitted in duplicate. The documents in a foreign language must be accompanied by a certified translation into the Czech language.
(2) The application for authorisation to act as a bank or branch of a foreign bank shall be accompanied by the power of attorney conferred on authorised personnel to represent and act on behalf of the founders in the negotiations with the Czech National Bank on the request for the establishment of a bank or branch of a foreign bank and by the declaration of the employees authorised by the founders to act as a bank or branch of a foreign bank that all the founders submitted documents and data are up to date, complete and true.
The measure of the Czechoslovak State Bank of 15 February 1992 laying down the terms of the application for authorisation to operate as a bank, as well as the minimum amount of capital which is the condition for the granting of the authorisation and the requirements of the application for authorisation to operate as a bank to a branch of a foreign bank, as well as the minimum amount of capital granted, which is the condition for the granting of the authorisation, issued in the amount of 29 / 1992 Coll.
This measure shall take effect on the day of its publication.
Governor:
Ing. Tošovský v. r.
1) § 173 of Act No. 513 / 1991 Coll., Commercial Code, as amended. § 9 (1) of Act No. 21 / 1992 Coll., on Banks, as amended.
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Regulation Information
| Citation | Measure Česká národní banka č. 24 / 1994 Coll., setting out the formalities for the application for authorisation to operate as a bank, as well as the minimum amount of capital which is required for the grant of the authorisation and the requirements for the application to operate as a bank to a branch of a foreign bank |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 09.02.1994 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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