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Sberbank CZ, a.s. payout – summary of the most important information for clients
The Financial Market Guarantee System (hereinafter also the “ "Guarantee System“) ") received in accordance with Article 41d(1) of Act No 21/1992, on banks, as amended (hereinafter also the "Act on Banks") on 28/02/2022 the Czech National Bank Notification (hereinafter also the "CNB Notification") on the inability of Sberbank CZ, a.s. (hereinafter "Sberbank CZ") to meet its obligations to eligible persons under statutory and contractual conditions.
The Guarantee System will pay the following types of deposit compensation from the Deposit Insurance Fund:
- Basic, to natural and legal persons who were depositors of Sberbank CZ, as at the record date, up to 100% of the sum of their deposits, but no more than CZK 2,499,500 per depositor (the equivalent of EUR 100,000 at the exchange rate of CZK 24.995/EUR published by the CNB on 28/02/2022; the exchange rate list for 28/02/2022 can be found on the CNB website.
- Institutional, to selected institutions on whose accounts the funds of their customers are deposited (payment institutions, small-scale payment services providers, electronic money institutions, small-scale electronic money issuers, investment firms, bailiffs) up to 100% of the deposits of each of their customers in accordance with the records of the institutional client, but no more (including the basic compensation due to the relevant customer) than CZK 2,499,500 per customer.
- Increased, to natural persons who, in accordance with Article 41ea and Article 41eb of the Act on Banks, prove their entitlement to receive increased deposit compensation. More detailed information on the conditions under which it is possible to obtain increased compensation for deposits can be found here.
Procedure for obtaining compensation for deposits
All types of payouts will be made through selected branches of Komerční banka, a.s. (hereinafter "KB, a.s.") during the opening hours of individual branches over a period of three years from the payout start date.
Obtaining basic or institutional deposit compensation
To exercise a claim for the payout of basic compensation for insured deposits, it is not necessary to fill in any form or to contact or register with the Guarantee System. The same applies to claims for the payout of institutional compensation for deposits. Once the Guarantee System starts making deposit compensation payouts through KB, a.s. (i.e. from 09/03/2022 in the case of basic compensation and from 22/04/2022 in the case of institutional compensation), you can collect your compensation at a counter of the KB, a.s. branch designated for the payout according to the List of the payout bank branches. that you select. All you have to do here is submit a document proving your entitlement to collect the compensation, and choose the account onto which you want the deposit compensation to be transferred, or indicate that you want the compensation to be paid out in cash. Payouts to legal entities will be made in non-cash form only.
Claim for the payout of compensation can be done also by correspondence or in electronic form via a data box - more information about this can be found here.
- If you do not have another account onto which you want to have the funds transferred, you can open an account at a counter of the KB, a.s. branch. The actual process for the transfer to another bank takes place within standard deadlines for interbank payments, i.e. usually by the second business day.
- If you would prefer to receive your deposit compensation in cash, we recommend you read the rules for cash transactions in force at the selected KB, a.s. branch.
- According to the Act on Banks, the payout of basic compensation for deposits will take place over a period of 3 years, i.e. until 10/03/2025.
- According to the Act on Banks, the payout of institutional compensation for deposits will take place over a period of 3 years, i.e. 22/04/2025.
Documents required to obtain compensation
- Natural person = citizen – valid proof of identity (an ID card, passport, Permanent Residence Permit).
- Natural person = entrepreneur (self-employed person) – a valid identity document (an ID card, passport, Permanent Residence Permit) and an extract from the Trade Register.
- Legal person (company, civic association, etc.) – the original, an officially certified copy, or an electronically signed valid extract from the Commercial Register or from another public register not older than 3 months, and proof of identity for the individual acting on behalf of the legal person (an ID card, passport, Permanent Residence Permit). In the case of amounts exceeding the equivalent of EUR 15 000, other documents may also be required to verify the identity of the beneficial owner.
- In the case of an heir or legal successor from another title, a document (the original or an officially certified copy) proving acquisition of the claim in question will be required.
The complete list of documents can be downloaded here
Obtaining increased compensation
The payout of increased deposit compensation (i.e. compensation for ‘temporary high balances’) according to Article 41eb(4) of the Act on Banks will be made on the basis of submitted applications from eligible persons who prove their entitlement to increased compensation through the relevant documents and who deliver their applications to the Guarantee System by 28/04/2022.
The applicant will be informed in writing about whether his/her application has been approved or not.
According to the Act on Banks, Guarantee System will start the payout of increased compensation for deposits on 28/06/2022 (on the basis of submitted applications of persons who have substantiated the right to increased compensation with the relevant documents and delivered the application to the Guarantee System by28/04/2022).
Complaints
If a client believes he/she has not been awarded the right amount of compensation, he/she may use the complaint procedure. The complaint form which, once completed, you can send to the postal or e-mail address of the Financial Market Guarantee System, can be downloaded here: Complaint form.
Frequently asked questions
HOW IS THE DEPOSIT COMPENSATION AMOUNT CALCULATED?
For the purposes of deposit compensation payouts, all the insured deposits of a depositor at Sberbank CZ, a.s. are added up, including interest calculated as at 28/02/2022. The amount of deposit compensation paid out is 100% of this aggregate sum of deposits, but a maximum of CZK 2,499,500.
AT WHAT EXCHANGE RATE ARE DEPOSITS CONVERTED TO ESTABLISH THE EQUIVALENT OF THE EUR 100,000 LIMIT?
The Czech crowns equivalent of the limit is calculated using the foreign exchange rate published by the Czech National Bank as at the record date (28/02/2022)
DOES DEPOSIT INSURANCE ALSO COVER INTEREST ACCRUED ON DEPOSITS? I.E. WILL I BE REFUNDED THE AMOUNT SAVED INCLUDING INTEREST ON THE DEPOSIT?
This insurance also covers interest on deposits, which is calculated as at the record date (28/02/2022). However, if the interest was paid by the financial institution in advance upon opening the account for the entire duration of the deposit, the part of the interest that would otherwise accrue after the record date (28/02/2022) is, of course, not subject to deposit compensation. For the purposes of payment of the deposit compensation, the principal of the deposit will be reduced by these interest already paid, which would otherwise accrue only after the record date.
I HAD A FOREIGN CURRENCY ACCOUNT WITH A BANKRUPT BANK. IN WHAT CURRENCY WILL I RECEIVE MY COMPENSATION?
The compensation is paid out in the currency of the country in which the relevant account is situated. In the case of an account maintained in the Czech Republic, the compensation will be disbursed only in Czech crowns. The conversion will be made using the rate published by the Czech National Bank as at the record date (28/02/2022).
WHERE CAN I COLLECT MY COMPENSATION?
You can collect your deposit compensation at selected branches of the payout bank. These branches are listed here.
WHAT DOCUMENTS DO I NEED IF I WANT TO COLLECT MY COMPENSATION?
If you are a natural person (citizen), you will only need an ID card or passport. A natural person who is an entrepreneur (a self-employed person) must also furnish an extract from the Trade Register. If you want to collect compensation as a representative of a legal person, you must, in addition to an identity document, furnish an extract from the Commercial Register or other register not older than 3 months.
WHAT IS THE DEADLINE FOR COLLECTING MY COMPENSATION?
Deposit compensation will be paid out over a period of three years following the payout start date, i.e. for basic compensations from 09/03/2022 to 10/03/2025. You can collect your compensation at any time during this period. Once this period expires, it will no longer be possible to make the payout.
HOW WILL MY COMPENSATION BE PAID?
The money will be transferred to another account you own (i.e. by bank transfer) or paid out in cash.
CAN THE PAYOUT BANK DIVIDE THE COMPENSATION OVER SEVERAL BANK ACCOUNTS OR ONLY TO ONE ACCOUNT?
After identifying the client, the payout bank will pay the compensation either in cash or by bank transfer to the account specified by the client. In this case, it is not possible to divide the compensation and send it to several accounts; the compensation may only be sent in full to a single account. The client will receive appropriate proof of the payout made at a branch of the payout bank.
WHAT SHOULD I DO IF I GO TO A BRANCH OF THE PAYOUT BANK AND I AM NOT ON THE LIST OF ELIGIBLE PERSONS ENTITLED TO RECEIVE DEPOSIT COMPENSATION? OR IF I AM ON THE LIST BUT I DO NOT AGREE WITH THE COMPENSATION AMOUNT TO BE PAID OUT?
In both these cases, you will need to use the complaint process - more information can be found here.
CAN I AUTHORIZE SOMEONE ELSE TO COLLECT THE COMPENSATION?
Yes, you can grant another person power of attorney, which will be issued exclusively for the payout of compensation for deposits. A sample power of attorney can be found here. The principal’s signature on the power of attorney must be officially certified. In the case of power of attorney issued abroad, its translation into Czech must be officially certified.
CAN THE COMPENSATION BE COLLECTED BY ANY PERSON AUTHORIZED TO DISPOSE OF THE FUNDS ON THE ACCOUNT OF THE BANK FOR WHICH THE PAYOUT IS TO BE MADE? (I.E. THE SO-CALLED DISPONENT)?
No, the only person who may collect the deposit compensation is the one in whose name the account is kept (in special situations stipulated by law, the compensation may be also collected by the owner of the funds on the account). Authorization to dispose of the funds on the account (e.g. in the case of the so-called ‘disponents’), without the person concerned being the person in whose name the account is kept, does not in and of itself establish the right to collect deposit compensation.
WHEN IS IT POSSIBLE TO COME FOR THE PAYOUT OF COMPENSATION FOR A DEPOSIT FOR WHICH THE MATURITY DATE WAS ARRANGED AFTER THE COMPENSATION PAYOUT START DATE?
In terms of the payout of deposit compensation, it is irrelevant whether the maturity date of the deposit was arranged for a date after the start date of the deposit compensation payout. The compensation will be provided from the first day when the payout starts according to the status as at the record date (28/02/2022), regardless of whether the maturity date of the deposit was arranged for a later date.
HOW IS COMPENSATION PAID WHERE THE DEPOSITOR IS INSOLVENT?
If insolvency proceedings are being conducted against a depositor as the debtor, it depends on the specific stage of the insolvency proceedings. If the insolvency proceedings are based on an insolvency petition and the court has not yet made a decision on bankruptcy and an insolvency administrator has not yet been appointed by the court, compensation for the claim from the insolvent debtor’s deposit with the bank is paid to the insolvent debtor. However, if the insolvency court has already decided on the debtor’s bankruptcy and appointed an insolvency administrator, compensation for the claim from a deposit belonging to the bankruptcy estate is paid to the insolvency administrator.
I SOLD MY HOME AND THE PURCHASE PRICE WAS SENT TO MY ACCOUNT SPECIFIED IN THE PURCHASE CONTRACT. I SUBSEQUENTLY DEPOSITED THIS MONEY ON A TERM ACCOUNT AT ANOTHER BANK, WHICH WENT BANKRUPT 2 MONTHS AFTER THE DEPOSIT WAS MADE. AM I ENTITLED TO INCREASED COMPENSATION FOR A TEMPORARY HIGH BALANCE?
Unfortunately not. To be entitled to increased compensation for a temporary high balance, the funds would have to have been credited/deposited on the account directly by the buyer or by an intermediary/custodian in line with the purchase contract. As you however subsequently transferred these funds, they can no longer be considered as a temporary high balance establishing the right to receive increased compensation (the subsequent transfer of the funds meant that this was no longer the payment of the purchase price, i.e. upon transfer, these funds no longer had the nature of the payment of the purchase price resulting from the sale of a residential property, which is protected by an increased deposit compensation limit).
On 28/01/2021, CZK 5,000,000 WAS RECEIVED ON MY ACCOUNT AS PAYMENT OF THE PURCHASE PRICE FOR A RESIDENTIAL PROPERTY. HOWEVER, IT WAS NOT POSSIBLE TO USE THESE FUNDS FROM THE DATE THEY WERE CREDITED ONTO THE ACCOUNT, AS A COURT ISSUED A PRELIMINARY INJUNCTION TO BLOCK THIS AMOUNT UNTIL RESOLUTION OF A LAWSUIT FROM THE BUYER SEEKING A DISCOUNT ON THE PURCHASE PRICE DUE TO DEFECTS IN THE PROPERTY CLAIMED BY THE BUYER. IN THE END, THE COURT DECIDED THAT THE BUYER WAS NOT ENTITLED TO A DISCOUNT ON THE PURCHASE PRICE. THE DECISION CAME INTO FORCE ON 28/01/2022, BUT THE BANK AT WHICH THE ACCOUNT WAS KEPT WENT BANKRUPT A MONTH LATER, ON 28/02/2022. WILL I BE ENTITLED TO INCREASED COMPENSATION FOR A TEMPORARY HIGH BALANCE EVEN IF THE RECORD DATE OCCURRED MORE THAN 3 MONTHS AFTER THE CREDITING OF THESE FUNDS ONTO THE ACCOUNT?
The Act on Banks stipulates that increased compensation may be awarded to the depositor if the amount in question was credited/deposited onto the account no later than 3 months before the record date. Nevertheless, at the same time, the Act on Banks allows that if the depositor, his/her legal representative or guardian is not entitled to use this amount on the day of crediting the amount to the account, the aforementioned three-month period will not start until the date of obtaining the authorization to use the amount. Thus, in your particular case, this three-month period did not start until 28/01/2022, when the funds were released by the court. As the record date occurred within 3 months after this date, this deposit is protected by an increased deposit compensation limit. If you submit an application for the payout of increased compensation, including all annexes required by law, within 2 months from the record date, you will be entitled to increased compensation.
IN THE CASE OF A CLAIM FROM A DEPOSIT ON AN ESCROW ACCOUNT THAT IS THE PURCHASE PRICE FOR PROPERTY USED FOR HOUSING, IS THE BUYER OR THE SELLER THE PERSON ENTITLED TO COMPENSATION?
The person entitled to compensation for the basic claim from the deposit (up to the limit of EUR 100,000) and at the same time the person who is entitled, on condition that all statutory conditions are met, to submit an application for increased compensation for the claim from a deposit (up to the limit of another EUR 100,000) is always the person who was notified to the bank by the account holder (lawyer or notary) at the opening of the account or at the latest transaction on it as the beneficial owner of the funds on the account. Any notification made after the record date will not be taken into account. If, therefore, the account holder (lawyer or notary) notified the bank that the beneficial owner of the funds is the buyer of property used for housing, the buyer is entitled to compensation for the claim from the deposit and, if all relevant statutory conditions are met, also the right to increased compensation for the claim from the deposit. If the account holder (lawyer or notary) notified the bank that the beneficial owner of the funds is the seller of property used for housing, the seller is entitled to compensation for the claim from the deposit and, if all relevant statutory conditions are met, also the right to increased compensation for the claim from the deposit.