Official Information of 22 February 2016

Official Information of the Czech National Bank of 22 February 2016, establishing the annual target level of contributions to the Resolution Fund for 2016

The Czech National Bank (hereinafter referred to as the "CNB") pursuant to Section 214(2) of Act No. 374/2015 Coll., on Rescue Procedures and Resolution in the Financial Market (hereinafter referred to as the "ZOPRK"), hereby announces:

I. Purpose of the Official Information

1. The purpose of this Official Information is to establish the annual target level of contributions to the Resolution Fund (hereinafter referred to as the "RF") for the year 2016 (hereinafter referred to as the "annual target level").

II. Annual Target Level

2. The CNB sets the annual target level at 2,958,854,930 CZK.

3. The annual target level is established by Article 3(3) of Commission Delegated Regulation (EU) 2015/63 of 21 October 2014 supplementing Directive 2014/59/EU of the European Parliament and of the Council as regards pre-funded contributions to resolution financing arrangements, as the total value of annual contributions set by the resolution authority for the contribution period with the aim of reaching the target volume of the RF pursuant to Section 213(1) of the ZOPRK (hereinafter referred to as the "target volume of the RF").

4. Pursuant to Section 213(1) of the ZOPRK, the target volume of the RF is set at 1% of the total volume of covered deposits.

5. Pursuant to Section 213(2) of the ZOPRK, the target volume of the RF is to be reached by 31 December 2024. To date, there has been no use of assets in the RF contribution fund in a total amount of at least 0.5% of the total volume of covered deposits, and therefore there is no reason to extend this deadline.

6. The CNB has estimated the total volume of covered deposits as of 31 December 2024, taking into account the average value of covered deposits in the previous year. Based on the obtained values, the CNB revises and refines the target volume of the RF annually.

7. In light of the entry into force of the ZOPRK on 1 January 2016 and the deadline mentioned in paragraph 5, the CNB considers that the equal distribution of contributions over the duration of the deadline corresponds to a proportional payment of one-ninth of the target volume of the RF.

III. Consideration of the Economic Cycle Phase and Pro-cyclical Impact

8. The CNB, in accordance with Section 214(2) of the ZOPRK, has simultaneously taken into account the phase of the economic cycle and the potential pro-cyclical impact of regular contributions on the financial situation of contributing persons. For the year 2016, a coefficient for taking into account the impact of the economic cycle has been set at 1.00.

9. The CNB discussed the aforementioned amount of the annual target level with the Guarantee System of the Financial Market on 11 February 2016, in accordance with Section 214(2) of the ZOPRK.

IV. Final Provisions

10. This Official Information shall enter into force on the day of its publication in the Bulletin of the Czech National Bank.

Member of the Banking Board
Doc. Ing. Lubomír Lízal, Ph.D.

Independent Restructuring Department
Responsible Employee:
JUDr. Jindřich Neubauer, Ph.D., tel. 224 412 488