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Economy and Banking Sector of the Czech Republic

Financial System Development

Financial System
67.6, 47th out of 144 countries
Banks' Soundness
80.9, 22nd out of 144 countries

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.

Financial Market Development in Czech Republic.

Chart 1. Financial Market Development in Czech Republic. Source: WEF.


Soundness of banks is scored 5.9 bringing Czech Republic into the 22nd place.

Soundness of Banks in Czech Republic.

Chart 2. Soundness of Banks in Czech Republic. Source: WEF.

Further Information

Banking Focus

Banks in the Czech Republic are mainly focused on the following areas:

  • savings and loans
  • corporate banking
  • retail banking

Banking Supervision

Česká národní banka

Czech National Bank

Banking Sector Structure

Number of Banks
61
Consolidated Assets (2019)
286.55 bln EUR  (+5.83%)
Recent Changes (2018)
new banks: 2, closed banks: 0

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.

Consolidated banking assets in Czech Republic.

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.

201320142015201620172018
Number of Opened Banks112122
Number of Closed Banks111130

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.

All the credit institutions operating in Czech Republic can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Banks18
Banks1
Branches of foreign banks26
Building societies5
Central banks1
Credit unions3
Loan associations1
Savings associations6

Table 3. Number of banks by category in Czech Republic.

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 OriginNumber of Branches
AT Austria6
DE Germany5
FR France3
SK Slovakia3
CN China2
PL Poland2
NL Netherlands2
DK Denmark1
HU Hungary1
IE Ireland1

Table 4. Number of branches of foreign banks in Czech Republic grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Czech Republic are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Temporary High Balance
200,000 EUR
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
Non-Eligible Depositors
banks
credit cooperatives
investment firms
financial institutions
insurance companies
reinsurance companies
health insurance companies
Covered Accounts
current accounts
savings accounts
term accounts
deposit accounts
saving books
Covered Currencies
all currencies, namely
  • CZK (Czech crowns)
  • foreign currencies
Paid In Currency
CZK

Table 5. Deposit guarantee scheme in Czech Republic.

Further Information

Country Ceiling for Deposits

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)
Aa1 (high grade)
Foreign Currency
Aa3 (high grade)

Local currency (Czech koruna) deposit ceiling for Czech Republic is set to Aa1 (high grade), foreign currency deposit ceiling is Aa3 (high grade).

Deposit Rates

Average Deposit Rate (Mar 2020, CZK)
1.38 %  (Feb 2020: 1.68 %)
In March 2020, an agreed annualised deposit rate in local currency (Czech koruna) of new contracts with agreed maturity up to 1 year between credit institutions and households was 1.38%.
Deposit Rates in Czech Republic.

Chart 4. Deposit Rates in Czech Republic. Source: ECB.

Further Information