On 12th March 2019 the Czech National Bank published in the CNB Bulletin the Official Information of the CNB of 5 March 2019 regarding the calculation of the risk weights for determination of contributions to the Deposit Insurance Fund (Czech only), updating the CNB Official Information No 7/2018 Bull. CNB, and updated the CNB Approach to the calculation of contributions to the Deposit Guarantee Fund.
As the CNB explains the deposit insurance in the European Union and the determination of contributions to deposit guarantee schemes are governed by Directive 2014/49/EU (“DGS II Directive”) on deposit guarantee schemes, transposed into Czech law through an amendment of the Act on Banks and the Act on Credit Unions with the effect from 1 January 2016. Moreover, the details of the calculation are provided in the European Banking Authority (EBA) Guidelines on methods for calculating contributions to deposit guarantee schemes.
In line with all the rules the CNB sets the annual contribution for credit institutions and branches by 31 May. The liable credit institutions and branches pay the contribution to the Financial Market Guarantee System by 30 June of the relevant year.