|Population (2016)||10 553 843 (0.00%)|
|EU Status||member since 2004|
|National Currency||CZK (Czech koruna)|
|Exchange Rate (2017-01-19)||1 EUR = 27.021 CZK|
|Nominal GDP (2015)||167.0 bln EUR (+0.07%)|
|Nominal GDP per Capita (2015)||15 800 EUR (+0.07%)|
|Real GDP Growth (2015)||4.5 % (2014: 2.0 %)|
|CPI, MoM (Sep 2016)||-0.2 % (unchanged)|
|CPI, YoY (Sep 2016)||0.5 % (Aug 2016: 0.6 %)|
|CPI, Year Average (2015)||0.3 % (2014: 0.4 %)|
|Unemployment Rate (2015)||5.1 % (2014: 6.1 %)|
|Government Bond Yield (Sep 2016)||0.25 % (Aug 2016: 0.29 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||A+||high credit quality, outlook stable|
|Moody's||A1||upper medium grade, outlook stable|
|Double Taxation Agreements||85 signed agreements|
|Exchange on Request||9 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 04 August 2014, Model 1|
|Financial Market Development||4.7 (max 7.0)||rank: 27th out of 138 countries|
|Banks' Soundness||6.0 (max 7.0)||rank: 14th out of 138 countries|
|Banking Industry Country Risk||4||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Czech koruna)||Aa2||high grade|
|Foreign Currency||A1||upper medium grade|
|Deposit Rates (Aug 2016, CZK)||1.07 % (Jul 2016: 0.70 %)|
|Banking Sector Structure|
|Number of Banks||58|
|Recent Changes (2015)||new banks: 2, closed banks: 1|
|Consolidated Assets (2015)||199.24 bln EUR (+9.66%)|
|Česka Sporitelna (Erste Bank)||Hypoteční Banka|
|Československá Obchodní Banka (KBC)||Raiffeisen Bank|
|Komercni Banka (Societe Generale)||J&T Banka|
|List of Banks in Czech Republic|
During the last 11 years EURCZK exchange rate was within the range 23.893 - 28.718, reaching its maximum in Jun 2007 and falling to its minimum in Jun 2008.
According to Eurostat, nominal GDP of Czech Republic in 2015 was 167.0 bln EUR.
Czech Republic outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.4% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 4.5% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Czech Republic was 15 800 EUR.
Czech Republic has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -14.4% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in Czech Republic in 2015 expressed as annual percentages of average consumer prices was 0.3% which was above the Euro Area average (0.0%) and above the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Czech Republic signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Czech Republic and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Czech Republic signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Czech Republic and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Czech Republic signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Czech Republic has FATCA agreement with the U.S. in effect since 04 August 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Czech Republic are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Czech financial accounts hold in U.S. financial institutions will be reported to Czech authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Czech Republic is scored 4.7 out of maximum 7.0 and ranked 27th out of 138 analysed economies. Soundness of banks is scored 6.0 bringing Czech Republic into the 14th place, trustworthiness and confidence of financial market is scored 5.2 (22nd place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Czech Republic is included into group '4' with economic risk scored '4' and industry risk scored '4'.
|Credit risk in economy||intermediate|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Czech Republic are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Czech Republic, branches of Czech banks abroad|
|Scheme Exemptions||branches of foreign banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||current accounts, savings accounts, term accounts, deposit accounts, saving books|
|Covered Currencies||all (Czech crowns and foreign currencies)|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||CZK|
Table 2. Deposit guarantee scheme in Czech Republic.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Czech koruna) deposit ceiling for Czech Republic is set to Aa2 (high grade), foreign currency deposit ceiling is A1 (upper medium grade).
Compare Bank Deposits in the Czech Republic
Currently there are 58 credit institutions operating in Czech Republic.
Recent structural changes (2013 - 2015) of the banking sector of Czech Republic are summarised in Table 3.
|Number of Opened Banks||1||1||2|
|Number of Closed Banks||1||1||1|
Table 3. Recent structural changes in the banking sector of Czech Republic.
All the credit institutions operating in Czech Republic can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||23|
|Savings and loan associations||1|
The list of the most recently opened banks in Czech Republic is provided in Table 5.
|Bank of China (Hungary) Close Ltd. Prague branch, odštěpný závod (new)||August 2015|
|BNP Paribas Pesonal Finance SA, odštěpný závod (new)||February 2015|
|Sumitomo Mitsui Banking Corporation Europe Limited, Prague Branch (new)||April 2014|
|Western Union International Bank GmbH, organizační složka (new)||April 2013|
Table 5. The most recently opened banks in Czech Republic.
There are 23 branches of foreign banks from 11 different countries in Czech Republic. Table 6 shows 10 countries having the biggest number of branches in Czech Republic.
|Country of Origin||Number of Branches|