Quoted from an interview with Czech Deputy Finance Minister, Klára Hájková on www.cbw.cz.
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Q: What risks derive from Czech banks being owned by major international banks that are now starting to have troubles, such as UniCredit?
A: I have to say that the ČNB works well and has very good experience if a big bank fails. I think there won’t be any problems because UniCredit operates here as a daughter institution. It’s not a branch, it’s a subsidiary and as such they have much more obligatory rules to operate. They simply can’t pass their liquidity to their parent companies, so liquidity will stay here and Czech UniCredit [Bank Czech Republic] won’t be exposed to the same problems.
Q: What is your information on the health of Belgian bank KBC, the owner of Československá obchodní banka (ČSOB)?
A: I don’t have any information. All I have is from the news. I think they had a different risk management than Dexia or Fortis. They stated that publicly, so I have to believe it, because I’m not an expert in this kind of thing. But again, as for UniCredit, ČSOB operates as a subsidiary, so in case something happens, branches would have much more serious problems than subsidiaries. We have 80 percent subsidiaries here, so I don’t think money will go away from the Czech Republic.
*ČNB - Czech National Bank
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Also an interesting article to read: ČSOB optimistic, in spite of parent’s woes
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