Decree of the Ministry of Finance No. 387 / 2001 Coll.
Ministry of Finance Decree on liquidity rules and solvency of savings and credit cooperatives
Valid
Order
Effective from 09.11.2001
Text versions:
09.11.2001
387
DECLARATION
Ministry of Finance
of 23 October 2001
on liquidity rules and solvency of savings and credit cooperatives
The Ministry of Finance provides pursuant to § 11 and 28i 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, as amended by Act No. 100 / 2000 Coll., hereinafter referred to as "the Act":
This Decree lays down rules for the cash flow management system of savings and credit cooperatives (hereinafter the "cooperative reserve ') in order to be able to meet their obligations on an ongoing basis in a proper and timely manner.
(1) Short-term liquidity management means liquidity management up to one year.
(2) The management of medium and long-term liquidity shall be understood as liquidity management over a period of more than one year.
(3) A liquid risk is a situation where a cooperative deposit has a greater amount of liabilities due than the amount of claims due at a certain time, and this condition may cause the cooperative's inability to meet its liabilities properly and in a timely manner.
(4) A classified asset means a claim by a cooperative reserve where the debtor's inability to pay his liability to the cooperative advance payment is demonstrated or can be seriously assumed.
In order to ensure continued compliance with the ability of the cooperative back-up to meet its obligations in due time (hereinafter referred to as "solvency '), the cooperative back-up shall in particular carry out liquidity management.
The basic way of managing the liquidity of the cooperative reserve is based on the planning of revenue and expenditure of money in the future.
(1) For time bands for calculating the asset and liability balance indicator, the period shall be:
(a) within 3 months;
(b) between 3 months and 1 year;
(c) 1 to 2 years;
(d) 2 to 5 years,
(e) 5 years and over.
(2) The following shall be treated as maturing assets in each time band:
(a) money,
(b) loans to members;
(c) loans to municipalities;
(d) deposits with banks;
(e) deposits with other cooperative advances;
(f) loans granted to other cooperative backups;
(g) loans to the Cooperative Fund (hereinafter referred to as the Fund),
(h) other claims on third parties;
(i) securities;
(j) participating interests;
(k) other fixed assets;
(l) other assets.
(3) The following shall be considered as payable liabilities in each time zone:
(a) members' deposits;
(b) loans from banks;
(c) deposits of other cooperative advances;
(d) loans from other cooperative advances;
(e) other deposits;
(f) other liabilities towards third parties;
(g) capital;
(h) other liabilities.
(4) Individual assets and liabilities are assigned to time zones in particular according to:
(a) maturity dates for assets and liabilities with fixed maturity dates;
(b) the expected development of liabilities with a fixed maturity, taking into account the likelihood of creditors renewing their deposits at maturity;
(c) the practices of depositors of non-fixed-term deposits;
(d) the degree of liquidity of the assets according to their marketability;
(e) the size of deposits made by individual depositors.
(5) The classified assets of the cooperative shall be recorded separately for liquidity management purposes, which shall not be included in assets assigned to time bands.
(6) For liquidity management purposes, quick liquidity assets shall be considered as:
(a) money,
(b) government bonds and bonds for which the State has taken over the guarantee;
(c) bonds issued by the Czech National Bank,
(d) bonds issued by central banks of the Member States of the Organisation for Economic Cooperation and Development with a State guarantee;
(e) deposits with banks;
(f) other bonds acquired with the approval of the Cooperative Reserve Supervisory Authority (hereinafter "the Authority"), which can reasonably be expected to be divested on the capital market without making a loss.
(7) Any assets that are burdened with third party rights shall be excluded from the quickly liquid assets of the cooperative.
The cumulative balance of assets and liabilities of a given time band shall be determined as a proportion of the sum of the maturing assets and the sum of the maturing liabilities of the given and all previous time zones, expressed as a percentage.
(1) The cooperative reserve shall reach by 31 December 2001 at the latest and, after that date, continue to reach the cumulative balance of assets and liabilities in each of the time zones referred to in points (a) to (c) of Article 5 (1) at least 45%.
(2) The cooperative reserve shall reach by 30 June 2002 at the latest and, after that date, continue to achieve a value of at least 70% of the cumulative balance of assets and liabilities in each of the time zones referred to in points (a) to (c) of Section 5 (1).
(3) The cooperative reserve which has reached the required values of the assets and liabilities balance indicators before the date referred to in paragraph 1 or 2 shall not be entitled to take any action to reduce the value of the assets and liabilities balance below that value.
(4) The cooperative reserve must reach by 31 December 2001 at the latest and, after that date, continue to achieve a value of at least 15% of all deposits held by the cooperative reserve.
(5) Where the maintenance of the range of liquid assets referred to in paragraph 4 would result in the value of the cumulative balance of assets and liabilities in the time zones referred to in Article 5 (1) (a) and (b) above above 102%, the cooperative shall be entitled to maintain only the amount of liquid assets that ensures that the value of those indicators does not fall below 102%.
Each cooperative reserve shall establish organisational measures leading to effective liquidity management. Within this framework, the cooperative reserve shall, within 3 months of the entry into force of this Decree, draw up its own internal regulation containing at least a liquidity management plan for:
(a) the state of normal conditions of operation of the cooperative reserve, broken down into:
1. short-term liquidity management;
2. management of medium and long-term liquidity;
(b) the liquidity risk status of the cooperative reserve.
This decree shall take effect on the day of its publication.
Minister:
Ing. Rusnok v. r.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 387 / 2001 Coll., on liquidity rules and solvency of savings and credit cooperatives |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 09.11.2001 |
|---|---|
| Effective from | 09.11.2001 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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