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Banking Regulation Updates in the Czech Republic
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The Czech Republic has recently seen significant updates to its banking regulations, aimed at reducing risks and strengthening the country’s banking sector. In this latest edition of our EU Banking & Finance Regulatory Newsletter, we explore some of the key developments.
Czech Republic Backs Joint European Approach to Energy Prices
At a recent Ecofin Council meeting in Luxembourg, the French Minister of Finance called for joint action among EU countries to address the rapid rise in energy prices. The Czech Republic, along with other countries, backed the call, which aims to reduce the EU’s dependence on energy imports and increase investment in local energy sources.
Amendment to Act on Banks Published
The Chamber of Deputies of the Czech Republic has published an amendment to the Act on Banks, designed to implement the CRD V Directive. The changes aim to improve the resilience of the banking sector by modifying capital requirements, adjusting capital reserves, and introducing new regulations for large groups outside the EU.
Key Changes Include:
- Modified rules for calculating Pillar 2 capital requirements
- Adjusted capital reserves
- Obligation for large groups outside the EU to establish an “intermediate controlling entity”
- Changes to regulation of financial holding companies and mixed financial holding companies
- New remuneration regulations aimed at promoting proportionality
The Czech National Bank has also issued a decree to reflect these changes in secondary legislation. The full texts of the Act and Decree are available online, although only in Czech.
Conclusion
These updates demonstrate the Czech Republic’s commitment to strengthening its banking sector and addressing key regulatory issues. Stay informed with our regular updates on EU banking and finance regulations.