CZECH REPUBLIC Law and Practice Contributed by: Tomas Sedlacek, Zdeněk Husták, Adam Nečas and Mikuláš Zacpal, BBH, advokátní kancelář, s.r.o.
2024/1114), AMLR (Regulation 2024/1624), and SFDR (regulation 2019/2088), to name a few. The Czech National Bank The Czech National Bank (CNB) supervises the banking sector as well as the capital markets, insurance companies, pension funds, credit unions, securities dealers, payment institutions and consumer credit providers. The supervi - sory activities of the CNB involve the licensing of financial institutions, monitoring of law and regulation compliance, conducting inspections and obtaining the information necessary for the exercise of such supervision. The banking sector is also regulated by decrees issued by the CNB. 2. Authorisation 2.1 Licences and Application Process Banking licences are granted by the CNB, whereby the licence may cover one or more banking activities, such as accepting deposits, providing credit, payment services, investment services, custody, clearing, financial advisory and intermediation services. Licences may be granted by the CNB to banks seated in the Czech Republic or established outside of the EU intending to establish a local branch. Application Process The AoB states a number of requirements that must be fulfilled in order to obtain a banking licence. These include, among others, a suffi - cient amount of capital available for the oper - ation of the bank, the integrity of the owners, the initial capital, the competence of key per - sons and a developed business plan. Licence
applications are accompanied by a number of required documents. Typically, the procedure for granting a bank licence takes 12 to 18 months, depending on the complexity of the business plan and target markers. Should a bank based outside the EU intend to establish a branch in the Czech Republic, the preconditions are similar. In addition, the CNB will request further information about the bank from the competent authority of its home coun - try and require appropriate supervisory co-oper - ation arrangements be in place. Banks established within the EU can benefit from the so-called “single licence principle”, under which a bank authorised in an EU mem - ber state is entitled to carry out activities under its licence in the territory of another EU member state without additional licensing requirements in that EU member state. Such bank may provide services in the territory of another EU member state through its branch or without establishing a branch (ie, on an occasional basis). To establish a branch, banks must comply with a notification procedure to their home state authority co-operating with the respective host member state authority when submitting infor - mation on its business plan, including a list of activities to be provided, the location of the branch, organisational structure and head of the branch.
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