According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Czech Republic is scored 67.6 out of maximum 100.0 and ranked 47th out of 144 analysed economies.
Chart 1. Financial Market Development in Czech Republic. Source: WEF.
Soundness of banks is scored 5.9 bringing Czech Republic into the 22nd place.
Chart 2. Soundness of Banks in Czech Republic. Source: WEF.
Banks in the Czech Republic are mainly focused on the following areas:
Czech National Bank
Currently there are 61 credit institutions operating in Czech Republic.
In 2019 consolidated banking assets in the Czech Republic were 286.55 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Czech Republic.
Recent structural changes (2013 - 2018) of the banking sector of Czech Republic are summarised in Table 1.
|Number of Opened Banks||1||1||2||1||2||2|
|Number of Closed Banks||1||1||1||1||3||0|
Table 1. Recent structural changes in the banking sector of Czech Republic.
The list of the most recently opened banks in Czech Republic is provided in Table 2.
|HSBC France - pobočka Praha||October 2018|
|Privatbanka, a.s., pobočka Česká republika||January 2018|
|BNP Paribas S.A., pobočka Česká republika||August 2017|
|Industrial and Commercial Bank of China Limited, Prague Branch, odštěpný závod||May 2017|
|PKO BP S.A., Czech Branch||December 2016|
|Bank of China (Hungary) Close Ltd. Prague branch, odštěpný závod||August 2015|
|BNP Paribas Personal Finance SA, odštěpný závod||February 2015|
|Sumitomo Mitsui Banking Corporation Europe Limited, Prague Branch||April 2014|
|Western Union International Bank GmbH, organizační složka||April 2013|
Table 2. The most recently opened banks in Czech Republic.
All the credit institutions operating in Czech Republic can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||26|
There are 26 branches of foreign banks from 10 different countries in Czech Republic. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
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 5.
Table 5. Deposit guarantee scheme in Czech Republic.
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 Aa1 (high grade), foreign currency deposit ceiling is Aa3 (high grade).
Chart 4. Deposit Rates in Czech Republic. Source: ECB.