The Czech National Bank has announced plans to withdraw its banking license from Sberbank CZ in a move that could affect not only households, but co-operatives and homeowner associations, which could leave many with funds in the bank losing anything over €100,000.
The Association of Czech and Moravian Housing Cooperatives sent out a mass e-mail on Monday, asking for information on the amount of deposits in accounts and the amount of liabilities, in preparation for the move.
“Loans are not such a big deal,” said the association’s chairman Jan Vysloužil. “The problem will rather be if the cooperatives have higher amounts on term deposits,” he added.
“By law, only amounts up to €100,000 are insured. If someone has a higher amount deposited with Sberbank CZ, this amount becomes subject to liquidation, i.e subject to settlement of receivables and liabilities,” stated Lukáš Kovanda, the chief economist at Trinity Bank.
According to Vysloužil, some cooperatives in the Czech Republic have up to 200 housing units, and thus many savings accounts with the bank may have balances in repair or renovation funds exceeding €100,000. He urged co-operatives to open a separate account with another bank and transfer the funds to ensure minimal disruption and maximum protection.