Czech National Bank is about to strengthen its remit over firms in crisis

Published: 17.06.2021 Related countries:  United Kingdom United Kingdom

The Chamber of Deputies of the Czech Republic have approved an act in reaction to the EU’s Bank Recovery and Resolution Directive (BRRD II) which should help to harmonize the general approach towards failing financial institutions in the EU.

The central bank of the Czech Republic could impose a so called “moratorium” on financial institutions in danger of crisis, which is a temporary suspension of their liabilities. Those changes should prevent particular companies from worsening the whole situation and gain them some time in order to make suitable changes corresponding with the public interest.

Source: ČTK