Decree No. 253 / 2013 Coll.
Order laying down the conditions for the creation of reserve requirements
Valid
Order
Effective from 03.10.2013
253
DECLARATION
of 29 July 2013
laying down conditions for the creation of reserve requirements
The Czech National Bank provides pursuant to § 26 of Act No. 6 / 1993 Coll., on the Czech National Bank, as amended by Act No. 227 / 2013 Coll.:
Subject matter
This decree provides
(a) the amount of reserve requirements;
(b) the date from which the compulsory minimum reserves must be maintained by the obliged person;
(c) the period during which the reserve requirements are maintained;
(d) the range of commitments from which the mandatory minimum reserves are maintained and the sources of data on those commitments; and
(e) the procedure for determining the fixed amount of the reserve requirements where the compulsory person does not submit the data from which the reserve requirements are set to the Czech National Bank.
Definition of terms
For the purposes of this decree:
(a) by compulsory minimum reserves, a specified part of the resources of the bank, a branch of the foreign bank and a savings and credit cooperative (hereinafter the "cooperative reserve") must be deposited in an account held with the Czech National Bank;
(b) a bank, a branch of a foreign bank and a cooperative bank,
(c) the maintenance period for the period during which the compulsory minimum reserves are maintained,
(d) the basis for calculating the set amount of the reserve requirements for the range of liabilities from which the reserve requirements are maintained.
Amount of reserve requirements
(1) The fixed amount of reserve requirements is:
(a) for banks and branches of foreign banks, 4% of the basis for calculating the fixed amount of reserve requirements, with the exception of liabilities arising from repurchase transactions for which it is 0%;
(b) for cooperative advances, 4% of the basis for calculating the fixed amount of reserve requirements, with the exception of liabilities arising from repurchase transactions for which it is 0%.
(2) The calculated fixed amount of the reserve requirements is rounded to the nearest crown.
(3) The average amount of reserve requirements shall be calculated as the sum of the daily closing stocks of the accounts in which the required minimum reserves are maintained in each day of the maintenance period divided by the number of calendar days of the maintenance period.
(4) The reserve requirement shall be respected if the average reserve requirement for the maintenance period is not lower than the reserve requirement.
Maintenance period
(1) Maintenance period starts on the first Thursday of the month and ends on the Wednesday before the first Thursday of the month following.
(2) In the event of the death of the debtor, the last maintenance period in which the reserve requirements are maintained shall be the maintenance period immediately preceding the maintenance period in which:
(a) in the case of a bank or branch of a foreign bank which does not carry on business within the territory of the Czech Republic on the basis of a single licence, the banking licence shall cease to exist (1);
(b) in the case of a co-operative, the authorisation to act as co-operative shall cease (2); or
(c) in the case of a branch of a foreign bank operating in the territory of the Czech Republic on the basis of a single licence (3), the branch of activities provided for in the law governing the activities of the bank4) in the Czech Republic or in the home state, the foreign bank has ceased its authorisation to carry out banking activities.
(3) Mandatory minimum reserves of the amount laid down in this Decree shall be maintained from 3 October 2013.
Basis for calculating the fixed reserve requirements
(1) The basis for calculating the fixed amount of the reserve requirements is liabilities with a maturity of up to and including two years, in the form of deposits and loans received, non-marketable securities issued and other debt securities issued less liabilities to other obliged entities.
(2) The commitments referred to in paragraph 1 shall mean liabilities in crowns and foreign currency.
(3) The maturity referred to in paragraph 1 shall mean the original maturity of the liabilities.
(4) The basis for calculating the set reserve requirements for each maintenance period shall be the data drawn from the statistical statements which the obliged entities are required to submit to the Czech National Bank, drawn up at the end of the month preceding the month in which the maintenance period begins.
Determination of the required level of reserve requirements in the event of non-submission by a compulsory person to the Czech National Bank
In the event that the obligor does not submit the relevant statistical statements needed to establish the basis for calculating the set amount of reserve requirements, the Czech National Bank shall estimate its amount for the relevant maintenance period on the basis of the previous reports and notify it in writing to the relevant obligor.
Efficacy
This Decree takes effect on 3 October 2013.
Governor:
Ing. Singer, Ph.D., v. r.
1) § 7a of Act No. 21 / 1992 Coll., on Banks, as amended.
2) § 2a of Act No. 87 / 1995 Coll., on savings and credit cooperatives and certain measures related thereto and on supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on income taxes, as amended, as amended.
3) § 5a of Act No. 21 / 1992 Coll., on Banks, as amended.
4) § 5d of Act No. 21 / 1992 Coll., on Banks, as amended.
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Regulation Information
| Citation | Decree No. 253 / 2013 Coll., laying down the conditions for the creation of minimum reserves |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 19.08.2013 |
|---|---|
| Effective from | 03.10.2013 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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