About The Performance Of The Activities Of Banks, Credit Unions

Original Language Title: o výkonu činnosti bank, spořitelních a úvěrních družstev

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=82460&nr=163~2F2014~20Sb.&ft=txt

163/2014 Sb.



The DECREE



of 30 March 2004. July 2014



about the performance of the activities of banks, credit unions and dealers

securities



The Czech National Bank provides under section 8b, paragraph. 7, § 8, paragraph. 3, section 10a

paragraph. 3, § 11a paragraph. 6, section 11B(2). 7, section 12a paragraph. 4, Section 12d of the paragraph. 6, §

12 paragraph. 6, section 13 (3). 2, section 14, paragraph. 3, § 15 paragraph. 2, section 22, paragraph. 2, §

24 paragraph. 1 and 2 of Act No. 21/1992 Coll., on banks, as amended by Act No.

120/2007 Coll. and Act No. 135/2014 Sb, under section 7a of the paragraph. 7, § 7ab paragraph.

3, § 7ad paragraph. 3, § 7b, paragraph. paragraph 10, section 8aa. 6, § 8aj paragraph. 6, § 8b

paragraph. 1, § 11 (1). 2, § 27, paragraph. 1 of Act No 87/1995 Coll., on

savings and credit cooperatives and some of the measures with the

related and the Czech National Council Act No. 586/1992 Coll., on the

income taxes, as amended by later regulations, as amended by Act No.

120/2007 Coll., Act No. 227/2013 Coll. and Act No. 135/2014 Sb, and according to the

§ 199, paragraph. 2 to implement section 9aa of paragraph 1. 6, § 9aj paragraph. 6, section 12f (c). and)

(b)), and (d)), section 12 g of paragraph 1. 3, § paragraph 12i. 3, § 16. paragraph 5, section 16a. 10, §

paragraph 16B. 2 and § 32 paragraph. 8 of Act No. 256/2004 Coll., on business

the capital market, as amended by Act No. 120/2007 Coll., Act No. 230/2008

Coll. and Act No. 135/2014:



PART THE FIRST



INTRODUCTORY PROVISIONS



§ 1



The subject of the edit



This Decree incorporates the European Union regulation ^ 1), at the same time

follows on directly applicable European Union ^ 2)



and) the requirements for the management and control system,



(b) the content of the message authentication) management and control system, a way to

structure and periodicity of its processing and the deadline for its submission,



(c) protection and) rules for risk reduction,



(d) the disclosure of information)



(e)) some of the information and documents submitted by the Czech National Bank.



Personal scope



§ 2



This Decree shall apply to the Bank, a savings and credit cooperative,

Merchant securities, an investment broker and branch

banks from other than the Member State.



§ 3



Bank and savings and credit cooperative is not covered by part three, title

I and part of a fourth title I and V.



§ 4



(1) A securities dealer under section 8a, paragraph. 1, 2 and 3 of the law on

business on the capital market are not subject to part two, title II, part of the

the third title I, part four and annex No. 3 to 6 of this Ordinance.



(2) A securities dealer under section 8a, paragraph. 4 and 7 of the law on

business on the capital market are subject to section 8, to 51, with the exception of attachments

No. 3 to 6 of this Ordinance, and section 94.



§ 5



(1) On the investment provider subject to section 9, section 10, paragraph 1. 1, §

11. 2 and 3, section 12, 13, 16 and 17, § 18 paragraph. 1, sections 20 and 21, § 23 paragraph.

1 and 5, § 24, 26, 46, 48 and 51.



(2) The investment provider, who is a natural person and

provides investment services solely in person, this Ordinance applies

to the extent that this provider



and in written form) lays down the principles and procedures referred to in section 10, paragraph 1.

1, § 11 (1). 2 and 3, § 12 and 21, and section 23, paragraph. 5,



(b)) in the written form, records of the principles and procedures for the purposes of

ongoing security checks on compliance with the obligations and the exercise of the activity in

accordance with section 13, 16 and 17, § 18 paragraph. 1, section 20, section 23, paragraph. 1, § 24, 26,

46, 48 and 51, and



(c) monitoring the performance of the activity) and compliance with the obligations, the principles and

working procedures under letters) and (b)).



§ 6



The branch of the Bank from a non-Member State shall be subject to section 52 to 62, §

71 to 74, 76, 78, 91, 92, 95, 98, 100 and 103, section 107 to 110, § 112 up

section 116 and 118.



section 7 of the



Definition of terms



(1) For the purposes of this Ordinance means



net cash flow) and the difference between inflows and outflows of cash

resources,



(b)), an ECAI credit assessment by an external rating agency referred to in article

4 (4). 1, point 98 regulation of the European Parliament and of the Council (EU) No.

575/13 of 26 February. June 2013 on prudential requirements for

credit institutions and investment firms, and on the amendment of Regulation (EU) No.

648/2012 (hereinafter referred to as "the regulation"),



(c) a summary of the staffing function,) the technical, organizational, and other

the assumptions defined in order to ensure the exercise of certain activities or

file operations required of the person,



(d) information and communication system) functional unit, ensuring the

the acquisition, processing, transmission, storage and sharing of information in the

any form, including a system of internal and external communication of compulsory

of the person,



e) institutions in accordance with article 4, paragraph 1 of the institution. 1 section 3 of the regulation,



(f) internal access)



1. internal ratings-based approach in accordance with article 143, paragraph. 1

Regulation,



2. the approach based on internal models in accordance with article 221 of the regulation,



3. approach based on their own estimates in accordance with article 225 of the regulation,



4. advanced measurement approaches in accordance with article 312, paragraph. 2 of the regulation,



5. the internal model method under articles 283 and 363 the regulation, or



6. the method of the internal evaluation referred to in article 259, paragraph. 3 of the regulation,



g) capital capital in accordance with article 4, paragraph 4. 1 point 118 of regulation,



h) capital the capital instrument instrument referred to in article 4, paragraph 4. 1 point

119 of regulation,



I) client depositor, borrower, the savings and credit cooperatives,

customer securities trader and customer investment

providers, and other persons in a similar position against mandatory person

including those, which in the future could be in one of the listed

the position,



(j)) a key feature of the function identified by the person required to

the basis of the evaluation of the importance of that function as a key for the activity

mandatory of the person,



collateral used to) thing to ensure the exposure,



l) consolidated the basis for a consolidated basis in accordance with article 4, paragraph 4. 1

section 48 of the regulation,



m) the control authority, of the Audit Commission, the Supervisory Board, the Administrative Board in

control the scope of performance or other authority with a similar control

scope, depending on the legal form of a person, that is.



(2) For the purposes of this Ordinance means



and qualified participation of qualified participation) in accordance with article 4, paragraph 4. 1

section 36 of the regulation,



(b) liquidity position) expected net cash flow within the framework laid down by the

time zones,



(c) indirect capital investment) indirect capital investments by

Article 4, paragraph 4. 1, point 114 of the regulation,



(d) the role of a member of the authority), who in person has not provided the required

powerful control function



e) trading books business portfolio in accordance with article 4, paragraph 4. 1 point

86, regulation



(f)), cash and reward pay non-cash benefits and other income of the worker,



g) operating risk operational risk in accordance with article 4, paragraph 4. 1, point 52

Regulation,



h) authority other than the general meeting or meeting of members, in

Depending on the legal form of a person, which,



I) by a person of the financial sector financial sector body referred to in article 4

paragraph. 1 section 27 of the regulation,



(j)) at the height of the person, the person who takes the leadership in obligatory person

powerful control function, which ensures the everyday performance management

activities required of the person and in the exercise of this function, directly subordinated to the

authority required of a person or his Member, and even in the event that such

the function takes the authority of the person required



to the controlling person) the parent undertaking in accordance with article 4, paragraph 4. 1 point 15

Regulation,



l) control check in accordance with article 4, paragraph 4. 1, point 37 of regulation,



m) controlled the subsidiary undertaking in accordance with article 4, paragraph 4. 1 point 16

of the regulation.



(3) For the purposes of this Ordinance means



and lever a lever) in accordance with article 4, paragraph 4. 1, point 93, regulation



(b) a branch of the Bank from another) than the Member State of the branch of a foreign bank

established in another Member State than that awarded by the Czech National Bank

a licence under the Act on banks,



(c) compulsory Bank, person), savings and credit cooperative,

securities, investment broker,



(d)) the worker a person who is required by a person with the basic

employment or similar relationship, or any other person, if it is a member of the

the authority or Committee required a person



(e)) the originator of the originator in accordance with article 4, paragraph 4. 1 section 13 of the regulation,



f) regulated market regulated market in accordance with article 4, paragraph 4. 1, point 92

Regulation,



g) restructuring forced restructuring, pursuant to article 178, paragraph. 3

(a). (d)), the regulation



h) risk model, the potential loss that may required a person

arise in particular as a result of a decision taken on the basis of the results of the

internally used models due to errors in the development, implementation or

the use of these models,



I) risk excessive leverage the risk of excessive leverage in accordance with article 4, paragraph 4. 1

section 94 of the regulation,



(j)), the managing authority's Board of Directors, the Managing Director, the Administrative Board shall, in the performance

the management scope or other authority with a similar design, in

Depending on the legal form of a person, which,



The securitisation of securitisation) in accordance with article 4, paragraph 4. 1, point 61 of the regulation,



l) securitisation unit for special purpose securitisation

for special purpose in accordance with article 4, paragraph 4. 1, point 66 of the regulation



m) sekuritizovanou exposure to the securitised positions referred to in article 4, paragraph 4.

1, point 62 of regulation.



(4) For the purposes of this Ordinance means



and the failure of the debtor by failure) Article 178 of the regulation,
(b)), the sponsor of the sponsor in accordance with article 4, paragraph 4. 1 section 14 of the regulation,



(c)) subkonsolidovaným the basis subkonsolidovaný basis in accordance with article 4

paragraph. 1 section 49 of the regulation,



(d) capital investment) synthetic synthetic equity investment

in accordance with article 4, paragraph 4. 1 point 126 of the regulation,



(e) the relevant person) system in accordance with article 4, paragraph 4. 1, point 29,

the person referred to in article 4, paragraph 4. 1, point 31 of the regulation, a person referred to in article 4

paragraph. 1, point 32 regulation or institutions whose failure or bad

operation could lead to the creation of systemic risk,



(f)), the risk of disturbing the continuity of the systemic risk to the financial system with

the possible serious negative effects on the financial system and the real

the economy,



g) a central counterparty central counterparty in accordance with article 4, paragraph 4. 1

section 34 of the regulation,



h) service of the person or group of people responsible for the performance of certain activities

required persons, including organs and committees required a person



I) close links close links in accordance with article 4, paragraph 4. 1, point 38

Regulation,



j) recognised stock exchange recognised in accordance with article 4, paragraph 4. 1 point 72 of the regulation,



the head of the authority of the governing body) and the inspection body,



l) internal regulation statutes, organizational rules, statutes, and other plans

internally fixed principles, rules, procedures, and internal management acts,



m) Executive Member of the body that the person holds in compulsory by the Executive

control function



n special pension benefits) special pension benefits referred to in article

4 (4). 1, point 73 of the regulation.



PART THE SECOND



THE MANAGEMENT AND CONTROL SYSTEM



TITLE I OF THE



REQUIREMENTS FOR THE MANAGEMENT AND CONTROL SYSTEM



[To section 8b 7, § 8, paragraph 3 and Article 10a, paragraph 3, of the Act on banks, Section 7a

paragraph. 7, § 7ab paragraph. 3 and § 7ad paragraph. 3 of the law on credit unions

cooperatives and section 12f (c). and), b) and (d)) and § 32 paragraph. 8 (a). and the law)

business capital market]



Part 1



Prerequisites for the proper management and control of



The basic requirements for the exercise of the activities of the



§ 8



Required, the person shall ensure that the management and control system is a comprehensive and

It covers all its activities throughout the period of activity compulsory

the person on the financial market. In relation to persons in the consolidation

not included into prudential consolidation applies this requirement

mutatis mutandis.



§ 9



Required the person meets the requirements set out in the management and control system

and its components ^ 3) with regard to its size, its business model,

its complexity and associated risks, organizational arrangements, the nature,

the scope and complexity of the activities, which performs or intends to perform.

Taking account of the evolution of the environment in which it operates, including the development in

governance and management.



§ 10



(1) the person shall ensure that the requirements set out in the management and control

the system and its components, and the procedures required of a person to meet them and when

the performance of other activities are reflected in the internal rules, the mandatory

of the person and of the consolidated Group. Required the person to be

the adoption, modification and application of the internal rules.



(2) for the purposes of the performance, provided the proper management and control through the

the application of the proper procedures required the person chooses, enter into the internal

legislation and apply it in their chosen activities recognized and proven

the principles and procedures issued by reputable publishers and used in

the activities of a similar nature (hereinafter referred to as "recognized standard").



(3) for the purposes of the performance, provided the proper management and control through the

the application of the proper procedures required the person always



and when their activities) observes and reflects the internal regulations



1. legal obligations and



2. General guidelines the European supervisory authority (European authority for

banking) ^ 4), the European supervisory authority (European authority for

Securities and markets) ^ 5), the European supervisory authority (European institution

for the insurance and occupational pensions) ^ 6), Common

the Committee of European supervisory authorities ^ 7) and of the European Council for system

the risk, unless their particular provision was in conflict with the

the requirements of legislation or allow the circumvention of their purpose, and



(b)) shall take account of the information published by the Czech National Bank in

Journal of the Czech National Bank, with the fact that when determining accepted

standards referred to in paragraph 2 required the person account



1. Overview of selected recognized standards and selected accepted

publishers and



2. comparative standards, whose contents are the expectations of the Czech national

the Bank in compliance with the requirements of this Ordinance.



(4) the projection of the standards referred to in paragraph 3 (b). (b)) in the internal

rules and their application required by the person is deemed to be the performance of

the provisions of paragraph 2. This does not affect the right of individuals to choose and to mandatory

internal regulations to reflect other recognized standards; their contents

or use, however, may not be in conflict with the requirements of legislation or

bypassing their purpose.



(5) the person regularly examines whether internal rules and

selected recognized standards are current and consistent with the other

the requirements of this Ordinance and other legislation.



(6) the person shall ensure that the rules are part of the internal regulations

for



and registration of complaints and complaints) clients, their handling and

monitoring of the measures taken and



(b) internal staff reports) a breach or imminent breach of

the requirements laid down by this Decree, law, this Decree

shall, by regulation or other relevant regulations including internal,

as well as the rules for the communication of particular concern on

the functionality and effectiveness of the management and control system, or some

its components, outside the normal flow of information.



§ 11



(1) the person shall ensure that the authority of the Committee, and their members, as well as

and the activity carried out by them comply with the requirements under section 13 to 19 and more

the requirements laid down by this Decree them or by law, that this

the Decree shall, by regulation or other relevant regulations including the

internal.



(2) the person shall ensure that all approval and decision-making

processes, as well as control and other relevant activities, including

the related responsibilities and powers and internal rules can be

the tracing and reconstruct, including scope and powers,

the composition and functioning of the organs and committees required people and competencies,

the powers and activities of their members. To ensure the security of this requirement

use retention system, which required a person shall establish and

maintains.



(3) the person shall ensure that the balance of competencies Required in the approval,

the decision-making and control activities and avoiding undue influence

a single person or a small group of people on these processes; This also applies in the context of the

the consolidation unit.



§ 12



(1) If an activity which would otherwise engaged, or could

to carry out the required person, alone, shall perform the required person through

another person (hereinafter referred to as "outsourcing") is without prejudice to the responsibility of the

mandatory of the person.



(2) the person shall ensure that, in the context of outsourcing



and this is not limited to) the compliance of the activities to be performed with the appropriate

the legislation, the possibility of their checks required by the person filling

information obligations towards the Czech National Bank, performance monitoring, including

checks if any of the facts which are subject to supervision by the provider

outsourcing, the audit of the financial statements and other validation

provided for in other legislation ^ 8),



(b)) is not compromised, efficiency and adequacy of the proper consistency of the assumptions

governance, risk management and internal control, including compliance with

legal obligations, in particular the rules of prudent business,



(c)) shall not affect the legal relations required the person with the client and the



(d)) are provided for the following activities to be performed, checking rules

required by a person, including any checks on the facts relating to the

the activities of the outsourcing provider.



(3) the person enters into a contract governing the outsourcing

that allows you to capture its content, accountability and

law enforcement, as well as keeping quality.



Bodies and committees



section 13



(1) the Supervisory Authority shall supervise whether the management and control system is effective,

a comprehensive and reasonable, and insights from this activity at least once a year

evaluates. In the framework of the implementation of this obligation is also regularly

matters concerning the strategic direction, management and

the results of the activities required of the person and the streamlining of the risks to which it is or would

may be required by a person exposed, even in terms of provision

the permanent functioning of the mandatory person in the financial market in accordance with

the subject and plan its activities.



(2) the supervisory authority shall supervise and continuously assures the fulfillment of approved

strategies, including risk management strategies, the integrity of the accounting systems

and financial reporting, including the reliability of financial and operational

checks on compliance with the legal obligations and the relevant standards

liable person, the adequacy of its system of communication and

disclosure of information and overall functionality and effectiveness of the management and

the control system.



(3) in carrying out their supervisory powers, the control authority
critically and constructively participate in an appropriate manner, in particular, on the



and evaluation of strategic and financial) management,



(b)) the evaluation of the risk management



(c)) the evaluation of the



1. in accordance with the regulations of the internal rules,



2. consistency of the internal rules and



3. in accordance with the laws and internal regulations



(hereinafter referred to as "compliance") and



d) routing, planning and evaluation activities of the internal audit.



(4) the inspection authority within its jurisdiction shall decide on the appropriate

measures to remedy any identified deficiencies.



(5) in the performance of those activities to the supervisory authority in the field of control and

control system, which creates a conflict of interest (the Executive members

"the special control of the supervisory authority"), required a person

ensure the hearing of the case and the decision on it without the presence of Executive

Members; in this case, a decision taken by a majority of non-executive

Members considered the decision of the authority. Specific monitoring activities

the supervisory authority are always activities referred to in section 14.



§ 14



(1) the supervisory authority shall be assessed in an appropriate manner the activities of the members of the management

authority. In assessing the activities of the members of the Steering Body and the possible

Search the new members of the supervisory authority takes into account sufficiently

a wide range of features and capabilities and also apply the principles

supporting efficient and reasonable diversity in the overall composition of the

the steering body.



(2) the inspection authority in advance on the proposal on physical credentials

or legal persons, ensuring the performance of the risk management function, the function

compliance and internal audit functions, or on her appeal. Control

authority shall be assessed in an appropriate manner the activities of these persons. Without the consent of the

the control body of the person of these functions cannot be appealed. In the event that the

the performance function is involved more people, expresses the control authority

only the credentials or the appeal of a person concerned in the management of

function.



(3) the supervisory authority shall lay down in particular the principles of the remuneration of persons to which

the credentials of the leadership function is expressed in advance in accordance with paragraph 2, and the members of the

the management of the authority, unless this is not in the competence of the general meeting or the Member

the meeting.



(4) a supervisory authority assesses the total remuneration system. For a more detailed

definition of certain requirements for remuneration mentioned in annex No. 1.

of this order.



§ 15



(1) a person shall adopt measures that lead to ensure that the

control authority as a whole and its members have for the exercise of their activities,

appropriate expertise, time, and other assumptions and pay them the appropriate and

sufficient capacity. Part of the appropriate conditions for the exercise of the activities of the

the control of the institution as a whole is a sufficient degree of independence in

performance of their duties. These requirements shall apply mutatis mutandis to the Committee

the supervisory authority and its members.



(2) If required, the person shall on its own decision, or on the basis of

Act or other legal regulation Committee of the supervisory authority,

clearly define its scope and powers, composition, manner of negotiations

and decision-making and the inclusion of the Committee into the organisational arrangements and

information flows required of the person. The activities of the Committee focus on helping

support the activities of the supervisory authority. The responsibility of the audit authority

You cannot pass on his Committee, unless another law provides otherwise.



(3) If a mandatory person establish a Committee or committees of the supervisory authority,

apply the requirements laid down in this decree or other legal

law on the composition and activity of a specific Committee of the supervisory authority

by analogy to its supervisory authority and its members, and such activities

the supervisory authority shall be regarded as specific control activities

the inspection authority.



(4) for a more detailed definition of certain requirements for activities and committees

the supervisory authority referred to in annex 2 of this order.



(5) for the purposes of setting up committees for nomination, for the risks and for

the remuneration shall be considered as mandatory for the relevant position of the person, if the share of

mandatory of the person on the total balance outstanding of all required of persons on the

the market reaches or exceeds 5%.



(6) a person who is not referred to in paragraph 5 is considered significant,

can merge the risk Committee and the audit committee ^ 9) with the fact that on

the merged Committee shall apply mutatis mutandis the requirements set out for each Committee

separately.



section 16 of the



The managing authority shall ensure that the creation of a coherent and adequate management and

control system and systematic maintenance of functional and

efficiency in its whole and parts, including



and implementation of the strategies laid down) the principles and objectives and day-to-day management

the performance of the activities required of the person,



(b)), to ensure compliance with the management and control system by

the legislation, in particular the compliance with the legal obligations and the relevant

standards required by the person; part of this requirement is to ensure

activities with professional care,



c) set up and maintain the management and control system, so that

ensure the adequacy of information and communication in the performance of activities required

persons, in particular the introduction and maintenance of a functional and effective system

acquisition, use, and retention of information, including internal and

external communication and disclosure of information required by the person,



(d) establishing and maintaining functional) and an effective organization

the arrangement, including the segregation of incompatible functions and preventing the emergence of

potential conflict of interest,



e) exclusion of the relevant and of sufficient capacity for the performance of activities

mandatory of the person, in particular in the following areas:



1. the management of significant risks,



2. capital and liquidity management, financial management, management accounting,

pricing and activities directly related to those activities,



3. use of external ratings and



4. internal models used for risk management and internal models

associated with these activities, including internal validation and reviews

These models,



f) ensure the integrity of accounting systems and financial reporting,



g) ensure the reliability of financial and operational controls and



h) ensure a smooth performance of the activities and the permanent functioning of the mandatory

the person on the financial market, in accordance with the subject and plan its activities.



§ 17



(1) the managing authority shall ensure that the determination of the overall strategy, in particular

sufficiently specific principles and objectives of its fulfilment, and elaborations,

establishing and maintaining procedures for filling set out strategy.



(2) the managing authority shall ensure that the rules, which clearly

formulate the ethical and professional principles and models of behavior and

meeting of workers in accordance with these principles and rules, and their

the promotion, application and enforcement.



(3) the managing authority shall ensure that the principles of human resources management,

in particular, the principles for the selection, remuneration, evaluation and motivating workers

in accordance with the approved overall pay system, and their

establishing and maintaining. It is also part of the policy, the requirement that all

activities, including the activities of the authorities and of the committees, if they are established, and their

Members, persons in the top leadership and people in key positions they have worked

qualified personnel with relevant knowledge and experience and to

the scope and nature of the activities of persons, which required the person secures the performance of

its activities, does not impede the proper performance of the individual activities of these

persons.



(4) the managing authority shall ensure that they are established, maintained and applied



and the credibility of) the requirements for knowledge and experience of the persons that

secures the performance of its activities, including the members of the institutions and committees,



(b) the total requirements) the knowledge and experience of the persons constituting the authority or

the Committee, persons in the top leadership and people in key positions and the



(c) the scope and requirements)



1. demonstrating the required knowledge and experience and trust,



2. examination of lasting trust and



3. examination of whether the knowledge and experience of the persons, which required a person

secures the performance of their activities, are still current and reasonable

the nature, scope and complexity of the activities.



(5) the managing authority shall ensure that the required person consistently applies the proper

management, administrative, financial and other procedures. The managing authority shall ensure that the

that all staff are familiar with the relevant internal rules and

respect means your job is, in the management and control system and actively

This system laid down by the way involved; to the security of this

the request also serve to influence corporate culture the negotiation management

the authority and its members and the internal communications system required the person.



(6) the managing authority shall ensure that such systems are applied and the procedures

the proceedings, which



and ensure its compliance with) strategies, policies, objectives and procedures, and



(b) in order to avoid undesirable), or phenomena, which are

in particular, the



1. the preference for short-term results and objectives, which are not in accordance

with the implementation of the overall strategy,



2. the remuneration system, which is disproportionately dependent on the short

performance, and



3. other procedures that do not support the functionality and effectiveness of performance

activities, allow you to exploit the resources or covering up deficiencies or other
inappropriate behaviour including circumvention of the purpose of the legislation.



section 18



(1) the governing body approved and regularly evaluates the



and the overall strategy)



(b)), the organisation of



(c)) the strategy of human resources management, including policy support

diversity in the overall composition of the institutions required the person taking account of

a sufficiently broad range of features and capabilities of members of the institutions required

persons, including the proposed, in their search and examination,



(d)) of the risk management strategy, including risks arising from

the macroeconomic environment in which the person operates, and mandatory even in

Depending on the economic cycle, and including



1. acceptance of risks required by the person, and



2. the recognition, evaluation, measurement, monitoring, reporting and

reducing the occurrence or impact of the occurrence of the risks to which it is or may be

required the person exposed,



e) strategy related to capital and capital ratios,



f) development strategy information and communication system that

the key elements of this system are



1. the information and their flows, including the disclosure of information required

person and internal and external reporting required person, and



2. information technology and technology including recording techniques and

technologies,



(g)) the principles of internal control system in the always the policy for



1. preventing the emergence of a potential conflict of interests,



2. compliance and



3. the internal audit and



h) safety policy, including the security policy for the information and

communication system.



(2) the management authority approves and evaluates regularly, as part of the

strategic decisions referred to in paragraph 1,



and the system of limits, including total) an accepted risk level and potential

internally set capital, liquidity and other prudential

reserves or surcharges (hereinafter referred to as "prudential reserve or margin"),

that person will be required to use for risk reduction in the context of her

an accepted risk level,



(b) an accepted level of risk) and other limits for risk

credit, market, operational, concentration, excessive leverage and liquidity,

including requirements on the structure of assets, debt and off-balance sheet items,

unless the governing body has delegated this authority, without prejudice to the

his responsibility, in part or in full to its designated Executive

the Committee or the Executive Committees, the Commission or the other services of the management authority

of a similar nature (hereinafter referred to as "Executive Committee"),



(c) definition and system policy) internal cost allocation and internal prices,

zohledňovaného required by the person in the context of the risk management system and the system

internal capital, if this is relevant,



(d) definition and access policy) required the person to the use of outsourcing,



(e)) the definition and principles of access required a person to perform operations with persons

engaged in the activity or providing services similar to the Bank,

which is not supervised,



(f) the definition and principles of access) required the person to operations in which it is

or could be directly or indirectly involved under-

transparent or otherwise potentially risk counterparty or

geographical area, including offshore centres; the obligations laid down

mandatory person in the area of the prevention of the legalization of proceeds from crime

activities and the fight against terrorism and are not affected by



(g)) the definition and principles of access required a person to the nonstandard operations,

in particular, such that are unique and unusual and are not normally

implemented or other providers of financial services; as

non-standard operations can also specify operations required the person referred to in points

e) and (f)).



(3) the governing body approved



and new products, activities) and systems and other matters with

the required person of fundamental importance or another possible impact, unless the

the control authority has delegated that competence, without prejudice to its

responsibility, in part or in full to its designated Executive Committee

or executive committees,



(b) the status and function of the subject), risk management, the compliance function and the function

the internal audit and the personnel and technical support for their performance and



(c) strategic plan) and periodic internal audit.



(4) the governing body oversees the implementation of approved strategies, policies and

the objectives required of a person and other activities, in particular the activities of the persons in the high

leadership. The managing authority in good time and is sufficiently regular reports and evaluates the

the extraordinary findings, which are reported to him by persons in the high

leadership, in the performance of the functions of risk management, the compliance function and the function

the internal audit, the supervisory body, committees, if they are established,

Auditor ^ 11) or by the competent supervisory authorities or from other sources. On

the basis of this evaluation takes appropriate measures and ensure their

implementation without undue delay.



(5) the management authority is regularly with persons in the top leadership of the

matters relating to the management and control system.



(6) the management authority at every major change in the situation required a person

at least once a year, evaluates the overall functioning and efficiency of the

the management and control system, and shall ensure that the appropriate steps to remedy as follows

any identified deficiencies.



§ 19



(1) a person shall adopt measures that lead to ensure that the control

the authority as a whole and its members have for the exercise of their activities, the appropriate

training, time and other assumptions and pay them the appropriate and

sufficient capacity. Similarly, the following requirements apply to the Executive Committee

and its members.



(2) If required, the person shall on its own decision, or on the basis of

Act or any other Act of the Executive Committee, clearly define the

its terms of reference, powers, composition, manner of negotiations and decision-making

the inclusion of the Executive Committee to the Organization and arrangement of information

flows person required. The activities of the Executive Committee shall focus on helping

support the activities of the management authority. The responsibility of the managing authority cannot be

delegate to the Committee, unless another law provides otherwise.



(3) If a mandatory person Executive Committee shall establish the requirements

laid down in this decree or other legislation on the composition and

a specific activity of the Executive Committee of the steering body by analogy to its

the managing authority and its members.



The performance of the activities of the Organization



section 20



(1) the person shall ensure that the organizational arrangements and internal

the rules that govern it, sets out clearly and fully the scope and

powers, the main flow of information and links



and the institutions, committees,) if they are established, their members and other

the staff and the services required of the person and in the framework of the consolidation unit for

the purpose of prudential requirements; required, the person shall also ensure that the

the arrangement of the performance of certain activities within the consolidated Group

in the form of their centralization or a similar form, including the application of

Group models



1. does not interfere with the proper performance of the legal and contractual obligations required of the person,



2. restrict information unduly required persons and



3. will not compromise the other significant assumptions the performance activity in accordance with the

the rules of prudent business, including providing adequate

understanding the following organized activities and corresponding options

influencing their performance required by a person.



(2) the person establishes the working individual departments and persons

enabling effective communication and cooperation at all levels and

providing functional, effective and prudent management and the performance of other

activities, including the activities of the decision-making and control, and the way

neohrožujícím proper, honest and professional obligations.



(3) the person shall define their key features with the fact that the relevance of the peace

membership in the authority of the Committee, or the top management required a person

rank. A specific function or functions required of the person, including

the key, can provide, in part, or in full, usually

(I) a person other than the worker.



(4) a person shall establish internal information flows towards the head of the institution

so, to clearly cover all significant management risks have been

accordance with the principles required for risk management and its

^ 10) arranging and adequately take account of the changes in the risk profile of the

mandatory of the person or of its organizing principles and risk management.



section 21



(1) the person shall ensure that the institutions and committees, where they are established,

their members and other staff and services on all of the management and

organizational levels defined the scope and powers of the so that it

enough to avoid the emergence of potential conflict of interest.



(2) a person identifies areas where there is a possibility of

conflicts of interest, including the potential conflicts between the interests of the people and clients required,

within the Group of which the person is a member, is mandatory in the representation and

outsourcing.



(3) the person shall ensure that the procedures for the exercise of activities are

so, in order to reduce the possibility of conflict of interest. Required the person on

ensure that the area of conflicts of interests and areas of possible occurrence of are

also the subject of ongoing independent monitoring internal audit or

other comparable way.



(4) the person provides workers the obligation to inform her

specified way without undue delay of the Tokugawa or imminent
conflict of interests, in particular when such conflict involves or could involve

the worker himself.



(5) a person shall ensure appropriate independence of the performance of the internal

due to the nature of the checks, the subject and the importance of control and prevention

conflict of interest in arranging for all the control mechanisms including the

control of risk management, and compliance. As part of the implementation of the request referred to in

the first sentence is mandatory, the person shall ensure that the



and workers in internal control) functions are independent of the

departments that control, and



(b)), the duties of risk management and performance compliance function are mutually

separated, unless such an arrangement would be disproportionate to the nature, scope

and complexity of the activities required of the person.



(6) the performance of the internal audit is independent of other activities required

persons, as well as on the performance of other control functions required of a person. The performance of the

internal audit is incompatible with membership in the authority, the mandatory

of the person; This also applies to a person close to the Member of the authority, the mandatory of the person.



section 22



(1) the person shall ensure that, regardless of the activities in which direct

as a result it is required the person exposed to credit or market risk (hereinafter

"commercial activity"), is carried out



and) approval of systems and methods for valuation of collateral



(b) the valuation of collateral)



(c) the valuation of transactions agreed on) financial markets,



d) settlement and compliance data (hereinafter referred to as "rekonciliace")

negotiated transactions on financial markets,



e) release of funds provided



(f)) for risk management limits approval of credit, market, liquidity,

concentration and excessive leverage,



(g)) the approval value and other methods, systems and models

used for risk management,



h) risk management of credit, market, liquidity, concentration and excessive

lever including checking compliance with the limits



I) creating quantitative and qualitative information about the risk

credit, market, liquidity, concentration and excessive leverage, the reported

people in the top management and the head of the authority and the



j) measurement and monitoring the liquidity position and its reporting of persons in the

top executives and the head of the institution.



(2) the person shall ensure that until the level of the members of the steering body of the Department of

scope and powers in the area of management of business activities from

scope and powers in the area of risk management of credit, market,

liquidity, concentration and excessive leverage and settlement and transaction reconciliation

negotiated transactions on the financial markets.



(3) development of an information and communication system is provided separately

from its operation and management of the system is carried out separately from the evaluation

security audit records, checks the allocation of access

rights and drawing up and updating of the security regulations for the

the system.



(4) if the arrangement referred to in paragraphs 2 and 3 in some of his

parts appropriate to the nature, scale and complexity of the activities required of the person,

can a person apply other appropriate mandatory arrangement, provided that the

There is no conflict of interests.



Information and communication



section 23



(1) the person shall ensure that the competent authorities, including the control,

committees, if they are established, their members and other professionals and services

they have for their decision making and further specified the activities available

information that is timely, reliable and comprehensive.



(2) the person shall ensure that the management authority within a reasonable time

informed of the



and all the facts that) could significantly affect the

the financial situation of the mandatory of the person, including the effects of changes in the internal or external

environment, and



(b)) of all překročeních the limits affecting compliance with the accepted rate

credit, market, and other significant risks incurred, including

concentration risk, excessive leverage and liquidity; in cases where the

the liquidity situation significantly adversely changing the control authority is informed

without undue delay.



(3) the person shall ensure that the head of the institution shall determine the nature, scope, format

and the periodicity of the information requested and it is regularly informed

at least on the



and compliance with the requirements laid down by) the laws and internal

provisions, including an overall assessment of whether the internal regulations and

standards chosen and used by a person in accordance with the compulsory section 10, paragraph 1. 2 are

the current and appropriate to the nature, scale and complexity of the activities required

persons, and including the identified significant differences in the procedures required of the person

to the requirements laid down by the legislation and internal regulations,



(b)) compliance with the rules for large exposures and risk concentration,



(c) credit risk to the extent podstupovaného), market, operating and excessive

lever and the liquidity situation,



d) overall risk profile, which means the overall level

incurred risks taking into account the influence of the mechanisms of internal

checks,



e) capital ratios and



(f)), the size and types of development assets in the load always on



1. level, trends and the types of asset and resource load load assets,

and it's broken down at least on repo transactions, loans of securities within the meaning of

^ Regulation 11) and other transactions,



2. quantity trends and credit quality of the unencumbered, but

loadable assets including the quantification of the volume of assets available for

load, and



3. quantity, trends and the types of additional load assets on the basis of the

taking into account the results of the stress tests, including the information as

stressful scenario.



(4) the person shall ensure that it has and uses information



and the progress and the results of the performance) of the activities required of the person,



(b) a comparison of the extent of the risk) podstupovaného with internal limits and with the requirements of

laid down by the legislation or the competent supervisory authority,



(c) the results of the analyses are important for) ensuring consistency and proportionality

the prerequisites of good governance and management, risk management and internal control

including compliance with the prudential rules, including the results of

analysis of the effects of the economic and market environment for the operation of mandatory

persons, analysis of its assets, debt and off-balance sheet items and analysis

its loan portfolio,



(d) the results of the stress tests)



(e)) the comparison of previous estimates rates of podstupovaného the risk is real

the results of the (testing), if required, the person uses methods

using or based on the estimate of the extent of the risk,



(f) the results of measurements) of liquidity on a daily basis, within the stipulated time

zones in each of the major currencies and collectively for all currencies and



(g) a comparison of the actual development of liquidity) with an appropriate scenario and limits

for liquidity risk management.



(5) a person Required



and) lays down the conditions of access of staff to information and communication

systems and data recorded in them, the scope of the rights and

the process of their establishment, including the method of deciding the scope of the

the rights of individual workers and their

the changes,



(b)) provides a way to ensure and the conditions under which they will be in the

information and communication systems store data associated with the

carried out the trades and services provided and carried out their

vacation adjustment conditions for the management of the data and ensure easy

quantification of their original content and the adjustments made, and the



(c)) provides the protection of information and communication systems

access and interference by unauthorized persons and against damage and

the ability to recover certain information even in the event that the damage to the

has occurred.



section 24



(1) the person shall ensure sufficient transparency in the management and

control system and proper disclosure of information about the system and the

its key components.



(2) a person publishes information about their current situation and the

foreseeable developments in a timely, affordable, adequate and balanced,

including the provision of a true and complete picture of her assumed

risks and their extent.



(3) the information required of a person for clients, including marketing communications,

are objective, clear, reasonable and not misleading.



§ 25



Required the person shall ensure that, in connection with the offering and provision of credit in the

informing clients about the foreign currency



and) risks associated with the loans granted in foreign currency in this

the extent that it was sufficient for an informed and prudent

decision making, including informing the client about the severe impact of the possible

the significant depreciation of the domestic currency or increase in foreign interest

extent on the amount of foreign currency loan repayment, and



(b) the existence of mandatory menu) of a person, in respect of



1. loans of the same nature in the domestic currency and the



2. financial instruments providing the client with a hedge against monetary

the risk.



section 26



(1) the person shall ensure that the system for the creation, control and

transmission of information to the Czech National Bank and other competent authorities is

created and maintained to provide information in a timely manner, currently,

reliably, and seamlessly.



(2) the person shall ensure that they are implemented and maintained mechanisms

internal controls to ensure the completeness and accuracy of all calculations,

the information, statements and other information on the individual and consolidated

the basis provided by the Czech National Bank and other competent authorities
regularly or on request.



(3) the person shall ensure that the procedures for creating and

the provision of data of the Czech National Bank and other competent authorities,

including reporting, are reverse traceable and

rekonstruovatelné even within the consolidated entity established for the purpose of

prudential requirements.



(4) the person shall keep the data required for monitoring compliance with the

limits and other rules laid down in this decree or regulation

for at least five years, unless otherwise specified; This is true even after the demise of the

permissions required of a person for the performance of activities in the financial market, as well as

for the successor to the mandatory of the person.



Part 2



Risk management system



The basic requirements for the risk management system



section 27 of the



(1) a person Required



and) will ensure that the management and control system is set up so that it allows the

systematic risk management



(b)) shall establish and maintain a risk management system so that it provides non-distorted

picture of the extent of the risks incurred,



(c)) shall ensure that the process of recognition of the risks is ensured for all activities

and on all of the management and organizational levels and allows the detection of

new, unidentified risks and



(d)) in the risk management takes into account all significant risks and risk

factors, which is or may be exposed, taking into account the nature of the

the scale and complexity of the activities. Risk management in its whole and parts

It takes into account internal and external factors, including consideration of the future

business strategy mandatory of the person, the effects of the economic environment and the cycle

and the environmental impact of the regulatory environment. Risk management takes into account the quantitative

and qualitative aspects of risk management options, and the real costs and

the proceeds resulting from risk management.



section 28



Mandatory person takes and maintains



and strategy and procedures for) the recognition, evaluation, measurement,

monitoring, reporting and control of the occurrence or impact the occurrence of risks



(b)) a system of limits used in risk management, including the procedures and

information flow when crossing intermediate levels or an accepted rate

risk or when any of the prudential reserves or surcharges

under their internally fixed level or regulatory limits,



(c)) the principle of control mechanisms and risk management activities, including

control of compliance with the established procedures and limits for risk management,

internal validation and reviews of models used in risk management,

authentication of the outputs of the assessment and measurement of risks and verification of effectiveness

measures taken to reduce the occurrence of a mandatory person or impacts

the occurrence of the risks, and



(d)) risk management function.



section 29



(1) the person shall ensure the systematic and effective performance of the functions of risk management.



(2) the person shall ensure that the person in the management of the risk management function is

by a person independent of other persons in the top leadership, with clearly

defined responsibilities and powers in the area of risk management required

of the person. If such an arrangement would not exercise the function of risk management

appropriate to the nature, scale and complexity of the activities required of the person, may

the performance of the risk management function to provide other appropriate and technically competent

sufficiently experienced worker, provided that there is no conflict of

interests.



(3) the person shall ensure that the level of independence risk management function on

other departments, the definition of the scope and powers of the business

inclusion, status and the resources allocated for its performance are adequate

the nature, scope and complexity of the activities, which required the person performs

or intends to carry out.



(4) the person shall ensure that the risk management function is introduced and

maintained so that will ensure the identification, evaluation, measurement,

monitoring, reporting and control of the occurrence or impact of the occurrence of the risks and

appropriate information on all significant risks and actively

participates in the preparation of the risk management strategy required the person and on all

important decisions in the field of risk management.



(5) a person shall establish and maintain a risk management function, so that

consistently provide a comprehensive and complete information about each of the

the risks, their mutual relations and the overall extent of the risks

mandatory of the person.



(6) the person shall ensure that the person in the management of the risk management function has

access to the head of the institution. If this person comes to the conclusion

that a certain risk is evolving in a manner that has or could have

an adverse effect on the required person, if necessary, shall submit reports on the

their concerns, including the reasons and the control authority,

independently of the control authority and the persons in the top leadership. In the case of

the findings, which may significantly affect the financial

the situation required the person to person in the leadership functions of the risk management initiative to

extraordinary meetings of the supervisory authority, which may be made of the

the decision of this body or to persons in the leadership of reasonably design features

risk management as a specific control activities of the supervisory authority.

The responsibility of the head of the institution is not affected.



section 30



(1) a person has a risk management strategy that is appropriate to the nature,

the range and complexity of its activities. Mandatory person shall draw up a specific

procedures for the implementation of this strategy.



(2) the risk management strategy set out in particular



and) internal definition (definition) the risks to which it is or may be required

a person is exposed to, including the definition of their key components,



(b) the principles for the assessment and) determining the significance for the purposes of risk management

required by the person,



(c) the individual risk management policy), including a system of appropriate time

Horizons for their management, in that the credit risk, the market always,

operating, liquidity, concentration and excessive leverage,



(d) methods for risk management), including stress testing, in that always

credit, market, operational, liquidity, concentration and

excessive leverage,



(e) the accepted level of risk), credit risk, the market always,

operating, liquidity, concentration and excessive leverage,



(f)) policy for the Assembly and adjustments to the contingency plans, including the

the contingency plan in the event of a crisis of liquidity and



(g) the policy for a definition of permitted) products, currencies, countries, geographical

areas, markets and counterparties.



(3) the person shall ensure that workers whose activity has an impact on

risk management strategies are familiar with the necessary

the extent and shall act in conformity with this strategy and the resulting

procedures and limits, including an accepted risk level and prudential

reserves or price increases.



(4) the person shall ensure that the



and the procedures used to monitor), the measurement and the streamlining of the individual

risks, including limits and prudential reserves or incidentals are comprehensive

and linked,



(b)) a system of limits and other measures for the management of individual risks

takes account of other risks and regulatory limits and is in accordance with the

business model and overall strategy required the person and market

the terms and conditions



(c)) applicable thresholds and procedures effectively avoiding overruns

the regulatory limits and mandatory person accepted risk level overall

even for individual risks.



(5) the person shall ensure that the risk management strategy and any procedures

and limits, including an accepted risk level and prudential reserves or

increases relating to risk management are regularly, especially when each

a significant change in the relevant facts, at least once a year,

evaluated and possibly edited.



section 31



Mandatory person controls the consistently



and credit risk, market), operational, liquidity, concentration and excessive

lever,



(b)) other significant risks or risk component, which is or may be

exposed, particularly the risk of reputation risk, strategic risk,

the sources of capital and financing, the risk associated with participation in

consolidation, including the risks of operations with members of the same consolidation

a whole, the risk associated with the management of reinsurance and load assets, risk

market infrastructure, the risk of non-standard operations, risk operations, in

which is or might be involved non-transparent or otherwise

potentially risk counterparty or the geographical area, the risk of operations

persons providing financial services like Bank, over which the

It is not supervised, risk operations, in which it is involved, other than

Member State, the risk of the impact of the regulatory environment, the risk impact

the political environment, the risk of infection and the risk of the system, except for the

the required person out of this risk into account, or not significant, and



(c) overall out of risk.)



§ 32



(1) a person holding a person in a group of mixed loads and maintains

procedures that allow it to adequately monitor the operations that

has negotiated with the mixed-activity holding person, a member of the group required

the person is, or with a person controlled by the mixed-activity holding a person

(hereinafter referred to as "operation within the group"). Special attention is paid to

major operations within the group.



(2) operations within a group are considered to be significant, if the

an individual basis 5% from 8% of total risk exposure

in accordance with article 92, paragraph. 3 regulation operations within the Group

of the same nature, negotiated with the same counterparty and in the same currency,

considered as one operation.



section 33
(1) the person provides the capital or other suitable cover for risks,

which is or may be exposed.



(2) policies and procedures for risk management, and for ensuring their protection

are integrated and linked.



(3) Mandatory person in the risk management and ensuring their coverage with caution

It takes into account the factors that influence the results of the evaluation or measurement of the

assumed risks, including the effects of



and) making adjustments and other adjustments for the valuation of assets and the creation of

provisions for off-balance sheet items,



(b) the use of own estimates) and models,



(c) mainstreaming of the results of the tests), in particular the interest rate shock test and other

stress tests



(d)), taking into account use of derivatives and other hedging techniques

reducing the risk and



(e) consideration of the effects of the layout).



(4) If the total rate of out risk or risk incurred

not even taking into account the influence of the mechanisms of internal control reasonably

covers, mandatory person in a timely manner, adopt appropriate and effective corrective measures.



More detailed requirements on the control of selected risks



§ 34



(1) Mandatory person recognizes and manages the risks associated with new or

non-standard products, operations, services and other activities, markets,

client segments, geographic areas, counterparties, distribution

sites and channels, market infrastructure, technologies, internal models

and systems, including the risks associated with their integration into existing

the activities and structures of the mandatory of the person.



(2) the person Required



and shall specify when) as to the case referred to in paragraph 1,



(b)) shall define the scope and powers,



(c)) shall ensure that the case referred to in paragraph 1 is scanned before the introduction of the

adequate inspection and approval procedures in the interests of a resolution of its

risk and inclusion in the risk management process, in accordance with the principle of

of significance.



(3) the person provides the essentials, which contains a proposal for the case

in accordance with paragraph 1. The proposal includes at least



and the description of the case) referred to in paragraph 1, including the description of accounting, tax and

legal aspects and possible needs the consent of the competent authority

supervision,



(b) an analysis of the expected impact of the introduction) to the required person and its control

and control system,



(c) the introduction of the procedure, design)



d) risk analysis, including proposals to their management; the proposed measures

required the person subsequently incorporated in the risk management system,



(e) the identification of the human, technical), and other sources that need to be

set aside on the proper management of security risks in accordance with the results of the

risk analysis,



f) valuation techniques



(g) the definition or list of suggested) counterparties and



h) ways of settlement of transactions.



(4) the facts referred to in paragraph 3 (b). (f)), g) or (h)), the proposal contains

only if this is the case referred to in paragraph 1.



(5) for the purpose of effective prevention and reduction of risks associated with

the case referred to in paragraph 1 required the person



and shall be deemed for the purposes of) risk management as a separate case under paragraph

1 in particular, each group of stores or services that have a common

the characteristics and risks of the distinctive characteristics and the risk is from another

She proposed, offered or provided by trade or services,



(b) for a separate case individually) in accordance with paragraph 1 in the manner specified by the

According to subparagraph (a)) applies specifically differences, in terms of principles,

the procedures, methods and tools for risk management, and



(c)) prohibits its staff to negotiate



1. transactions with non-approved cases referred to in paragraph 1,



2. the transaction, which would be based on an analysis of their economic

merits, the financial situation of the counterparty, the possible adverse

the implications for the required person or other recognized risk factors

the transactions were not commonly performed with other persons, and



3. the transaction, which would have led to the breaching internal limits or not

in accordance with the requirements laid down by the legislation, the Czech national

the Bank or other competent supervisory authority.



(6) the obligations referred to in paragraphs 1 to 5 shall apply mutatis mutandis to changes in

the cases referred to in paragraph 1.



section 35



(1) the person shall ensure that the



and) lending is based on reliable and clearly

set out the criteria and is clearly set out the procedure for the approval,

additions, alterations, renovation and the refinancing of loans,



(b)) through effective systems is provided ongoing management and

the monitoring of the various portfolios and exposures, with which it is associated to the credit

the risk, including the identification and management of problematic exposures and

the provision of the corresponding adjustments in the valuation, in particular the provisions items

in the balance sheet assets and off-balance sheet reserves for items, and



(c) diversification of the portfolios) credit risk takes into account the total

credit strategy including target markets.



(2) in direct dependence on the scale, nature and complexity of its activities

mandatory person thoroughly consider the creation of an internal evaluation tools

credit risk and increasing the rate of application of the approach based on the

the IRB approach for the calculation of capital requirements for credit risk,

in particular, if the exposure of a person required significant in absolute scale

and also has a large number of counterparties. Compliance with the requirements

laid down for the use of the internal ratings-based approach is not

This requirement of prejudice.



section 36



Required a person



and) through documented policies and procedures and

checks if the effect of the eligible credit reduction techniques

the risk of lower than expected, and



(b) the suitability and reliability) to ensure the principles and procedures for the management of

the residual risk associated with the use of eligible reduction techniques

credit risk and the accuracy of their application.



§ 37



(1) If a person is required by the investor, the originator or sponsor

securitization, evaluates and directs through adequate policy

and procedures for risk securitization including reputačního risk; in doing so, always

assess reputation risk in relation to the complicated structures or

products and ensure that the economic substance of the transaction is fully reflected

in the risk assessment and decision-making processes.



(2) If the person is required, the originator of the securitisation of revolving exposures

with the option of early repayment, provides liquidity plans for

the expected situation, so for the case of early repayment.



(3) a person is capable of at the request of the Czech National Bank to demonstrate her

to what extent is the capital maintained against the assets, sekuritizovala,

appropriate given the economic substance of the transaction, including

achieved the degree of transfer of risks.



(4) the person shall ensure that the achievement of the expected transfer of risks is not

reduced by the provision of a non-contractual support.



section 38



(1) a person shall establish and maintain policies and procedures for the management of the extent

market risk including evaluation or measurement of all its important

resources and impacts. Mandatory person takes and keeps the market management system

the risk of the trading book in accordance with the requirements referred to in articles 102 to

106 of regulation and control system of interest rate, currency, equity and

commodity risk investment portfolio. If the short position due

before long the position required the person shall take measures against

the risk of lack of liquidity.



(2) a person performs stress testing the impact of sudden and unexpected

changes in interest rates on the investment portfolio of the measurement of the impact of the interest rate

the shock value of the capital.



(3) the person shall ensure that measuring and documenting the impact of the interest rate shock

the capital of at least once every 3 months, separately for each currency with

at least 5% of the value of the assets and debts of the investment portfolio and

aggregate manner for the rest of the currency of the investment portfolio, the method

a parallel shift in the yield curve of 200 basis points in both directions; in

the case of a significant increase in the volatility of interest rates changes required

a person performs a calibration offset values of the yield curve. The lowest

the permissible value of the interest rate is 0%. Interest rate shock is counted only from the

low-sensitive items, which cannot be admitted. Mandatory

a person who does not have the obligation to establish the capital requirements for monetary

the risk, as does not exceed the threshold of significance under Article 351

Regulation, the interest rate shock for foreign currency might not count.



(4) in the case where the total impact of the interest rate shock could cause a decline in

the economic value of required persons of more than 20% of the capital, the mandatory

the person shall take the corrective measures without delay; the economic value of the compulsory

person for these purposes means the present value of the expected future

the net cash flows. Of the measures required, the person shall inform the

without undue delay, the Czech National Bank.



(5) having regard to the nature and size of the podstupovaného interest rate risk

mandatory person in managing the interest rate risk of the investment portfolio

used, where appropriate, alternative scenarios of the development of the yield stress

the curve, such as the development of the inverse, or changes the shape of the yield curve,

also uses a scenario set by the Czech National Bank itself.



(6) a person who, in the calculation of the capital requirements for position

the risk referred to in part III, title IV, Chapter 2 of regulation for their

positions in one or more of the shares that make up the stock index, compared to one
or more of the positions in the stock index futures or other product

the stock index takes into account the basic risk of loss caused by

the value of the futures or other product not moving fully in line with the

the value of the individual shares of the index is made up of, in strategies

and procedures for the internal capital ^ 12) required of a person. In these

strategies and procedures to take into account also the basic risk of existing

in the case when a person opposite the mandatory holding positions in futures on stock

indexes that are not identical to maturity, composition, or both.



section 39



(1) the person shall take into account the strategies and procedures for internally

capital risk of loss which exists in the case of the procedure referred to in

article 345 regulation at the time of the creation of the first debt in the following

the day's work.



(2) in direct dependence on the scale, nature and complexity of its activities

mandatory person thoroughly consider the creation of an internal evaluation tools

the specific risks and setting capital requirements for specific

the interest rate risk of the debt instruments in the trading book the internal

the model, along with the use of an internal model for the calculation of the requirements on

capital to cover the risk of failure and migration, especially if the exposure

required persons against specific risk significant in absolute scale and

It has a large number of important positions in the debt instruments of different

issuers. Fulfilment of the requirements laid down for the use of internal models

for setting capital requirements for market risk and the specific

the risk is not affected by this request.



section 40



(1) a person shall establish and maintain policies and procedures for the assessment and

influence of podstupovaného rate of operational risk, including risk models

and including the taking into account of a few major events frequently. Required a person

establishes what constitutes operational risk for the purposes of these policies and procedures,

without prejudice to this, the definition of operational risk in accordance with article 4

paragraph. 1, point 52 of the regulation.



(2) a person creates and maintains contingency plans, which

means plans for emergency situations, including emergency and crisis

situations and for reconstruction activities, to ensure the skills required of a person

continuously carry out activities and for capping losses in the event of a significant

disturbance activities.



§ 41



(1) a person shall establish and maintain



and) policies and procedures for ongoing and prospective measurement and management

liquidity position,



(b)) scenarios for liquidity risk management,



1. the standard scenario for liquidity risk management, which means

file internal assumptions, in particular, the assumption of the development of the structure of the

assets, debt and off-balance sheet items, and external assumptions, in particular

the assumption of the development of the interbank market and developments

individual States, on the basis of the required person estimates

the liquidity position during normal activities required of a person, and a summary of the

the subsequent steps required of a person for the purpose of the corresponding cover

the expected cash outflow and



2. alternative scenarios for the management of liquidity risks, including

alternative stress scenarios for liquidity risk management;

alternative stress scenario for liquidity risk management means the

file internal assumptions, in particular, the assumption of the development of the structure of the

assets, debt and off-balance sheet items, and external assumptions, in particular

the assumption of the development of the interbank market and developments

individual States, on the basis of the required person estimates

the liquidity position in stressful situations to varying degrees, and a summary of the

the subsequent steps required of a person for the purpose of the corresponding cover

the expected runoff and



c) contingency plans in case of liquidity crisis.



(2) the person Required



and) has sophisticated enough strategies, policies, procedures and systems to

identification, measurement, management and monitoring of liquidity risk in the proper

the system of time zones, including intraday time zones, so that

ensure that they will maintain adequate liquidity reserve

level. These strategies, policies, procedures and systems are



1. chosen so that they are appropriate to the individual lines

business, currencies, affiliates and legal persons and shall include adequate

allocation mechanisms on the liquidity costs, benefits and risks that

the internal price shall apply the mandatory person on all significant assets, debts and

off-balance sheet items, and



2. the complexity of the activities to be performed, the appropriate risk profile

mandatory of the person and the level of risk accepted by the managing authority and approved

reflect the importance of the mandatory person in any Member State or another State, in the

which carries out its business activity with that of the accepted

risk of liquidity are informed of all the relevant line management

and business,



(b)) shall take into account in the risk management of liquidity of the nature, scale and complexity of the

of its activities, in particular, the structure and scope of the product portfolio,

the system of risk management and the principles of financing, including its possible

concentrations, so that its liquidity risk profile was in the

accordance with the requirements of the appropriate and sufficient management functionality

This risk and avoid crossing the limits laid down,



(c) the methods applied to) identification, measurement, management and monitoring

refinancing of positions, which include current and estimated cash flows from

assets, debt and off-balance sheet items and the possible impact of the risk, reputačního



(d)) makes a distinction between assets and assets subject to nezatíženými, which are

whenever available, especially in a crisis situation. Also to be taken into account

legal person, which has certain rights to the assets of the fact in

which State are legally registered, and to their eligibility. Mandatory

the person also monitors whether the assets may be sold in a timely manner or loaded,



e) takes into account the existing legal, regulatory and operational obstacles

in the event of the transfer of unencumbered assets liquid or between

legal persons, both inside and outside of the European economic

space, and



f) assesses and takes into account the various options used tools

liquidity risk mitigation including the system of limits and liquidity reserves

in order to ensure that its functioning is not affected when a range of different

stress events and an adequately diversified to

the structure of financing and access to sources of financing.



(3) a person Required



and) takes into account the various alternative scenarios including stress for your

liquidity position and liquidity risk mitigation tools and

subjected to periodic review the assumptions on which it is

based decisions about refinancing position with regard to the changing

internal or external conditions, and this review is carried out in each

a significant change in the relevant facts, at least once a year, and



(b)) included in the alternative scenarios, in particular, used off-balance sheet

items and other contingent debt, including off-balance sheet items and

the other contingent debt relating to the securitisation of units for

Special purpose and other legal entities established with special

the purpose to which the person is required in the position of a sponsor or

provides significant liquidity support.



(4) a person Required



and considering the potential impact of alternative) stress scenarios

relating specifically to the required person scenarios relating to the market as a

a whole and combined alternative stress scenarios. In the account are

gateway of the different time zones and different degree of severity of the stressful situations; and



(b)) review and maintains the functionality and effectiveness of its strategies,

policies, procedures, systems, and other mechanisms for risk management

liquidity, including contingency plans, taking into account the results of the

alternative stress scenarios referred to in paragraph 3.



(5) contingency plans in case of liquidity crisis provide for adequate

strategies and proper implementation of measures to tackle the situation arising from

the possible lack of liquidity, even in relation to foreign

branches. These plans are regularly tested, updated by

the results of the alternative stress scenarios and in frequency according to

paragraph 3 (b). and presented to the persons in the top) leadership and

approved by such persons so as to be able to properly adapt

internal procedures. Mandatory person accepts in advance the necessary operational

the measures, to be contingency plans immediately applied. For the mandatory

the person is a bank or savings and úvěrním cooperative, this

operating measures include possession of collateral eligible Central

the Bank; If necessary, this requirement also includes



and possession of the collateral in the currency) of another State in which the person is mandatory

exposed to liquidity risk, and



(b)) if it is necessary from the operating reasons, also holding collateral on

the territory of another State, in whose currency is required the person exposed to the risk of

liquidity.



section 42



(1) a person shall Institute and maintain proper control, administrative and

accounting procedures and adequate internal control mechanisms for the detection and

record of major concentrations, including all large exposures in accordance with

Article 393 of the regulation and its subsequent amendments, in accordance with the requirements of the
Regulation, the Act and this order and to the monitoring and evaluation of all

in cases of significant concentrations and large exposures with regard to internal

the principle of mandatory person in this area.



(2) the principles and procedures for the management of concentration risk include



and) policies and procedures for dealing with the risks arising from the concentration

exposures to persons, economically or otherwise, groups of connected persons or

against persons in the same sector or geographical area, from the concentration

exposures from the same activity or traded commodities or underlying

the assets of the securitised exposures, exposures to central counterparties

collective investment funds or other exposures or from other

significant concentration with the common factor of risk and



(b)) policies and procedures for dealing with risk concentration arising from the

as a result of the use of the credit risk mitigation techniques, especially in the

case of significant indirect exposures, for example to one issuer

securities received as collateral.



§ 43



(1) a person shall establish and maintain policies and procedures for the identification,

the management and monitoring of the risks of excessive leverage. The indicator the risk of excessive leverage

include the leverage ratio determined in accordance with article 429 of the regulation and

a mismatch between the assets and the debts.



(2) the person accesses the control risks excessive lever preventively.

Required the person governed by the risk of excessive leverage, so that she was able to

check the entire range of the different events of crisis, as regards risk

excessive leverage, and sufficiently take into account the possible increase in the risks of excessive

the reduction of capital caused by the lever required persons due to

expected or realized losses, depending on the used

the accounting rules.



§ 44



(1) a person shall establish and maintain policies and procedures for the identification,

monitor and control the risks associated with the management of collateral and the load

assets.



(2) the principles and procedures referred to in paragraph 1



and take into account the business model required) of the person, the geographic distribution of

the relevant activities and assets, the market specifics and macroeconomic

the situation and



(b)) principles for contingency plans to tackle

the additional loads due to stressful events on the basis of the

taking into account the results of testing the impact of the possible, although a few

the likely shocks, including the consequences of a possible decline in guest

the credit quality of the mandatory of the person, the depreciation of collateral and the increase in

backup requirements for trading required a person.



section 45



Another definition of certain requirements for the control of selected risks outlined

for



and credit risk) in annex No. 3 of this order,



(b)) market risk in annex 4 of this order,



(c) liquidity risk) in annex No. 5 of this order,



(d) operational risk) in annex No. 6 of this order and



the risk of outsourcing in e) Annex No. 7 of this Ordinance.



Part 3



The internal control system



The basic requirements for the internal control system



section 46



(1) a person shall establish and maintain the control function and the mechanisms and

the procedures for monitoring the activity on all of the management and organizational

levels. Required, the person shall ensure that the personnel in the internal control

functions have systematically for the exercise of its supervisory responsibilities

the corresponding staffing and other requirements.



(2) the inspection activities are part of the normal, usually daily,

activities required of a person and include, in particular,



and after line management control),



(b) appropriate control mechanisms) for individual processes, in particular

control over the activities and transactions, control of risk management, authentication,

outputs used systems and models, check for compliance with the laws and

internal rules and limits, including evaluating the timeliness,

consistency and completeness of the internal regulations and the limits of control

the management of conflicts of interest, check the reliability of the security measures,

check the approval and authorization of transactions above the limits,

verification of details of transactions, regular transaction reconciliation, and also

the control mechanisms for the activities, which required the person or outsourcuje

intends to outsource, and



(c)) a physical check; physical control focuses on the limitations

access to tangible property, securities and other financial assets and

on the regular inventory of assets.



section 47



(1) the person shall ensure the systematic and effective compliance function and performance

the internal audit function.



(2) the system of internal control includes the mechanisms required for

internal reporting of violations of workers or impending violation of requirements

laid down by this Decree, by law, that this Ordinance is performed,

Regulation or other relevant regulations including internal, including the

mechanisms for communicating the specific concerns of workers regarding the functionality of the

or effectiveness of the management and control system or any of its

the components outside the normal flow of information.



(3) in the framework of the internal control system required a person takes and maintains

internal mechanisms of preventive and subsequent evaluation of the functionality of the

and effectiveness of the management and control system as a whole and its

part of the.



More detailed requirements on the selected internal control functions, mechanisms and

procedures



section 48



(1) a person shall establish and maintain policies and procedures for ensuring

compliance.



(2) the person shall ensure the continuous monitoring of compliance with the legal

the obligations and responsibilities arising from its internal rules.



(3) the person shall ensure that the Required performance, compliance and related control

It is also secure



and informing the persons in the top) the management of any detected

variance and nesouladech,



(b) inform the head of the authority) of significant variance and nesouladech,



(c) informing the persons in the top) executives on upcoming or new

legislation and standards relating to the activities of the

mandatory of the person and



(d) providing other useful information) regarding the compliance manager

authority and the persons in the top leadership.



(4) the principles and procedures for ensuring compliance cover seamlessly and

connecting all the activities required of the person.



section 49



(1) the person shall ensure the performance of the internal audit that covers

seamlessly and connecting all the activities required of the person and focuses on the

detecting deficiencies and risks.



(2) the person shall ensure the performance of the internal audit, that provides

the appropriate level of management objective and independent assurance of activities

mandatory of the person, information about the detected facts and clear recommendations

to remedy any identified deficiencies.



(3) the scope of the internal audit function shall apply in particular to the



and compliance with the prudential rules) required a person



(b) compliance with the policy) objectives and procedures,



(c)) risk management system including internal approaches and internal models and

the internal control system,



(d)) financial management and compliance management,



e) completeness, relevance and accuracy of the accounting,



f) reliability and bezrozpornost of the accounting, statistical and other

information, including information provided by the authorities of the mandatory of the person,

the information provided to clients and to the published information, and



(g)) the functionality and safety of the information and communication system including the

the reliability of the system, compilation and reporting of the Czech national

the Bank.



(4) the person shall ensure that in the performance of the internal audit are

carried out the following activities:



and risk analysis) of the Assembly, and at least once a year,



(b)) and the Assembly of the strategic plan of periodic internal audit,



(c)) the introduction and maintenance of system of monitoring measures to remedy the stored

on the basis of the findings of the internal audit and



(d) the assessment of the functionality and efficiency of) the management and control system

including the areas referred to in paragraph 3, at least once a year.



(5) the person in command of the internal audit function shall inform the

the facts of the managing authority and, if necessary, or to request

the control authority, of the decision of the authority or to reasonably

the design of the person in the management of internal audit functions may be a special

control activities of the supervisory authority. In the case of a finding, which may

meaningful way negatively affect the financial situation of the mandatory of the person,

the person in the management of the initiative of the internal audit functions for the extraordinary meeting of the

the supervisory authority, which may be made of the decision of this body

or on the proposal of the person in the management of probable internal audit functions, such as

specific control activities of the supervisory authority. The responsibility of the head of

authority is not affected.



(6) the definition of certain requirements for internal audit is referred to in

Annex No. 8 of this order.



section 50



(1) a person shall establish a mechanism for reporting on internal staff

a breach or imminent breach of the requirements laid down by this Decree,

by law, that this Ordinance shall, by regulation or other

relevant regulations including internal, including mechanisms for communication

the specific concerns of workers regarding the functionality and effectiveness of the management

and control system or some of its components, outside of the normal information

flows for all workers, ensure the consistent and reliable

the availability of the mechanism and the right to preserve the confidentiality of the sources of information
in the event that the worker will use the mechanism.



(2) the person shall ensure that the appropriate way to report staff

referred to in paragraph 1 and sufficiently transparent monitoring and evaluation

where appropriate, the measures adopted on the basis thereof.



(3) the person shall ensure that, in the event that the worker will use the mechanism

referred to in paragraph 1, the full protection of the worker concerned, in particular

unequal negotiations, reprisals or other unfair

treatment.



section 51



The assessment of the functionality and effectiveness of the management and control system



(1) the person sets the system detecting and reporting deficiencies

management and control system so that it covers and connecting seamlessly

all the management and organizational levels, and all the activities required of the person and

allows the timely correction of deficiencies.



(2) the person shall ensure that the shortcomings of the management and control system

or some of its components exposed by the control authority, after the line

control, within the internal audit or on the basis of other internal control,

Auditor, or in any other way are notified without undue delay

the appropriate management level and dealt with in a reasonable time.



(3) the person shall ensure that the significant weaknesses of the management and

control system or some of its components are notified to the

the head of the institution and to the audit committee and any further relevant

the Committee and dealt with without undue delay.



(4) the Mandatory person in an appropriate manner then verifies the effectiveness of the adopted

corrective measures.



TITLE II



REPORT ON THE VERIFICATION OF THE MANAGEMENT AND CONTROL SYSTEM AUDITOR



(Section 22, paragraph 2, of the law on banks and § 8b (1) of the Act on savings and

credit cooperatives)



section 52



(1) the report is the result of the validation, that meets these requirements:



and the validation was carried out by) State 31. December,



(b)) system has been compared to the laws, regulations and standards in accordance with § 10

as follows:



1. the basic components of the verification system comparison and evaluation

compliance of the system with the requirements of legislation,



2. selected standards pursuant to section 10, that were used to verify the

the system, in the professional judgement of the auditor's best reflect the size,

organizational arrangements, the nature, scale and complexity of the activities, which

mandatory person performs; the auditor may use recognized standards

not included in the list of correct Czech National Bank,



(c)) has been evaluated the functionality and effectiveness of control mechanisms and

specified under internal control mechanisms,



(d)) was expressed as risk weaknesses represented and

represent for the management and control system, and



(e)) was evaluated the functionality and effectiveness of the management and control

the system in the areas concerned as a whole.



(2) a more detailed definition of the structure and format of the report on the verification of the management

and control system is set out in annex 9 of this order.



section 53



(1) a person shall submit to the Czech National Bank report on the verification of the system

by the end of February of the following year, together with any comments required

the person to the message.



(2) the relevant facts that were discovered after the submission of the report

The Czech National Bank and have a substantial relationship to its content, shall notify the

mandatory person without undue delay of the Czech National Bank.



PART THE THIRD



THE RULES FOR THE RISK COVERAGE



TITLE I OF THE



THE RULES FOR CALCULATING THE CAPITAL RATIO OF BANK BRANCH FROM OTHER THAN

THE MEMBER STATE OF



(Section 12a (4) of the law on banks)



§ 54



The capital ratio of bank branch from other than the Member State of



(1) the capital ratio of bank branch from other than a Member State shall be



and capital) at the level of at least 6% tier 1,



(b)) at the level of at least 8% of the capital.



(2) a bank from another Member State than when calculating the

the capital ratio, mutatis mutandis, in accordance with article 92, paragraph. 2 (a). (b)), and (c)) and

articles 102 to 106 of regulation.



section 55



Determination of capital Bank branch from other than the Member State of



(1) The capital of the Bank branch from another Member State than can be included

the individual items of capital only once, and after a decrease of liabilities

tax obligations.



(2) Capital is derived from the balance sheet of the Bank branch other than the Member

State.



(3) capital is a branch of the Bank from other than the Member State immediately and

Unlimited available to cover losses from the risks to which it is exposed.



section 56



Capital Bank branch of the items other than the Member State of



(1) Capital branches of banks from other than the Member State concerned is the sum of

the capital of tier 1 and tier 2 capital.



(2) tier 1 Capital Bank branch from other than the Member State is

the sum of equity capital, tier 1 and tier 1 capital of the secondary.



(3) equity tier 1 Bank branch from other than the Member State of

consists of the items equity tier 1 by analogy with article 26 of the

paragraph. 1 (a). (c) to (f))) (a). 2 and 3 of regulation after editing by

articles 32 to 35 of the regulation, the deductions provided for in articles 36 to 48 of regulation and

application of article 79 of the regulation.



(4) a secondary tier 1 capital Bank branch from other than the Member State of

consists of items of secondary equity tier 1 by analogy with articles 51

up to 55 of regulation after the deduction of the items referred to in articles 56, 58 to 61 of regulation and

application of article 79 of the regulation.



(5) tier 2 Capital Bank branch from other than the Member State consists

from tier 2 capital the items similarly referred to in articles 62 to 65 of the regulation

the deductions referred to in article 66 of the regulation and of article 79 of the regulation.



§ 57



The total volume of risk exposure and capital requirements of the branch bank of the

other than the Member State of



Bank branch from other than a Member State provides for the total volume of

risk exposure by analogy with article 92, paragraph. 3 and 4 of the regulation and

capital requirements



and to credit risk), mutatis mutandis, in accordance with articles 107 to 311 of the regulation,



(b)) to the operational risk by analogy with articles 312 to 324, regulation



(c)) to a market risk by analogy with articles 325 to 377 of the regulation,



(d)) to settlement risk by analogy with articles 378 to 380, regulation



(e) the risk of credit adjustments) in awards, mutatis mutandis, in accordance with articles 381 to 386

of the regulation.



The request of the Bank branch from other than the Member State of the agreement with

use internal access or change internal access



section 58



(1) the request for consent to the use of any of the internal approaches for

the calculation of the capital requirement or changing the approach used

(hereinafter referred to as "request for approval") shall submit to the branch of a bank other than the

the Member State of the Czech National Bank, separately for each of the internal

approach for the calculation of the capital requirement.



(2) the request for consent contains basic information and the annex to that

information and facts presented in the basic data and the annexes to the

the application allows the Czech National Bank to examine compliance with the requirements

asked on the internal access.



section 59



(1) an application for approval submitted to Česká národní banka includes in its

the basic data in addition to the general terms and



and the definition of what an internal) access and the date from which a branch of the Bank of

other than the Member State intends to use,



(b)) the list of annexes, which are part of the application,



(c)), that all the applicant's statements it referred to information and facts

and submitted documents and documents are current, complete and correct.



(2) in the event that the branch of the Bank from another Member State than the Czech

National Bank asks for consent to the use of two or more internal

at the same time, and if the hit is for the approval of these approaches requires

the submission of the same documents and documents, is a branch of the Bank of

other than the Member State only once with the fact that in the request for consent

indicate that the application and when were these documents and documents submitted.



section 60



(1) the annexes mentioned in the list referred to in section 59 paragraph. 1 (a). (b)) in the case of

requests for consent to the use of any of the internal approaches for

the calculation of the capital requirement submitted by the Czech National Bank forms



and documentation of the Organization) strategy, the system and processes management

given the risks,



b) measurement system documentation of the risks,



(c) the implementation of the procedure documentation) of the internal access,



d) self-evaluation for the internal management of the Department of access established

the risk with the possible support of the internal audit department or with the

support the auditor's or consultants



(e) a list of all relevant documents) that are available for affiliates

banks from other than a Member State and subject to the system of management and

risk measurement, for which he wants to apply this branch of internal access, with

the fact that bank branch from other than the Member State is able to

to provide these documents to the Czech National Bank on its request.



(2) in the case of a request for consent to an internal access document

Annex to the application transparently and fully meet the requirements of the regulation on the

the internal access.



(3) if required by the branch of the Bank from a Member State other than the

the chosen way of implementation of internal access, shall submit to the branch of the Bank

from another Member State than the other documents or documents that

referred to in paragraphs 1 and 2, and in section 59 paragraph. 1, to request
clearly documented and fully meet the requirements of the regulation on the

internal access.



(4) If a branch of the Bank from another Member State than previously

the Czech National Bank has submitted documents or documents required in

requests for the consent or part of them, only those documents or

the documents, for which there was a change compared to the previous state. Previously

passed and still valid documents and the documents of the Bank branch other than the

the Member State designates in the application. In the attached statement of the Bank branch

from other than a Member State, in this case, indicating that these documents and

the documents remain unchanged.



section 61



(1) documentation of the Organization, the system and processes of risk management

contains



and the overall strategy and strategy) management of risks,



(b) the organizational arrangement) overview the scope, powers and

information flows in the management of risk,



(c) an overview of the verification process) for internal access



d) overview and reports from events and consultation ujišťovacího character

carried out by the internal audit service or other similar service or

the Auditor,



(e)) minutes of meetings of management and advisory bodies of the Bank branch from another

than the Member State of the region and



(f) other documentation demonstrating a way) meet the requirements of the

the Organization, the system and the risk management processes.



(2) documentation of the risk-measurement system contains



and the corresponding risk categorisation), exposures or portfolios used for

the approach and criteria



(b)) list of all the used methodologies and models and their use

a branch of the Bank other than the Member State of the relevant aspects,

for example, the coverage of categories of exposures, geographical areas, units or

lines of business, types of risks or loss measurement,



c) description and explanation of all the methodologies and procedures,



(d) a description of the structure of information technology), system and database

environment, the software used and the



(e) other documentation demonstrating a way) meet the requirements of the system

the measurement of risks.



(3) the implementation of the procedure documentation for internal access

contains



and the development of the methodology of measurement) of the risks has been developed by the branch

Bank of a Member State other than the



(b) a description of the implementation of the information system) for the measurement and control of the

the risks,



(c) an overview of the education workers made) relating to the

internal access



(d) a description of the procedure) when the transition from the existing system to the new,



(e) the procedures for changing the scope of) the use of methods or models, projection

major changes in the methods or models within a given access,



(f) the interim evaluation) procedures for appropriateness of models, methods and

procedures including the audit plan fitness models



(g) an overview of the use of the area) of the internal access in processes

Bank branch from other than a Member State, and



(h) other documentation demonstrating a procedure) of the implementation of the internal

access.



(4) of the Self-assessments for the internal access includes



and assessment of the adequacy and strategy) of the organizational arrangement of the

the requirements for the management and control system in a given area,



(b) assessment of the adequacy of resources for) further development, deployment and use of

the internal access,



(c) reciprocal links between) the evaluation methodologies used and

the internal consistency of approach and



(d)) identified deficiencies and errors, and a plan for their removal and the achievement of the

accordance with the requirements of the regulation on the internal access.



section 62



If a branch of the Bank other than the Member State shall forward the documents or

documents in electronic form, stating the nature of the media and used

the format of the data, especially for databases, tables, or charts, that advance

agree with the Czech National Bank. For the representation of the data in the cash

units of the Bank branch other than the Member State in advance, agree with the

The Czech National Bank currency.



TITLE II



CAPITAL RESERVES



(Section 12d (6) and section 12 (6) of the Act on banks, section 8aa (6) and section

paragraph 8aj. 6 of the Act on savings and credit cooperatives and section 9aa of paragraph 1. 6

and § 9aj paragraph. 6 the law on capital market business)



section 63



Countercyclical capital reserve



(1) the Counter-cyclical capital specific to the relevant mandatory

the person is given by the relation



ISCCB = sp. TRE,

where:

ISCCB indicates a countercyclical capital reserve

specific for the compulsory

person, expressed in Czech Crowns,

SP indicates the rate of countercyclical capital reserves

a specific person for the compulsory

TRE indicates the total amount of risk exposure

in accordance with article 92, paragraph. 3 regulation laid down

on an individual or consolidated basis,

expressed in Czech Crowns.



(2) the rate of countercyclical capital reserves specific to the

the required person sp is calculated as the weighted average rates of spi

countercyclical capital reserves, which apply in the States, in

which has a mandatory person located for counter-cyclical capital reserve

the applicable credit exposure, in relation



n

The SUM of the spi. XI

I = 1

sp = ----------------

n

SUM Xi

I = 1

where:

SP indicates the rate of countercyclical capital reserves

specific to the required person

the SPI indicates the rate of countercyclical capital reserves

in the State and in which the person required

placed their exposure,

and indicates the State

n indicates the total number of States in which it has

mandatory person located their exposure,

XI indicates the total capital requirement for credit

the risk determined in accordance with part three of the

titles II and IV to the regulation relating to the credit

applicable exposures for a countercyclical

the capital reserve and located in the State of

I, expressed in Czech Crowns,

n

SUM Xi indicates the total capital requirement for credit

I = 1 the risk determined in accordance with part three of the heads

II and IV to the regulation, related

applicable to all credit exposures

for countercyclical capital reserve, expressed

in Czech Crowns.



(3) the credit exposure for a countercyclical capital reserve

include all categories of exposures with the exception of the categories referred to in article 112

(a). and (f))) up to regulation, if these exposures shall be subject to the requirement to

capital for credit risk pursuant to part III, title II of the regulation, or

are held in the trading book and are subject to the requirement of capital to

specific risk pursuant to part III, title IV, Chapter 2 of regulation or

the requirement for additional capital to risk and the risk of migration failure

pursuant to part III, title IV, Chapter 5 of the regulation or, in the case of exposure,

that are subject to the requirement of securitisation, capital under part

the third title II, Chapter 5 of the regulation.



(4) the Mandatory person in determining the State in which the credit exposure

decisive for the calculation of countercyclical capital reserve is located,

proceed according to the regulation of the European Union relating to the geographical classification

credit exposures ^ 13).



(5) As the rate of sleep, which is the input for the calculation of the variable

countercyclical capital reserves specific to the relevant mandatory

person shall apply



and counter-cyclical capital reserve) for exposures situated in Czech

the Republic established the Czech National Bank,



(b) the rate of countercyclical capital reserve) for exposures situated in another

Member State of the date laid down by the competent authority

Member State, if this is not more than 2.5% of the total volume of

risk exposure,



(c) the rate of countercyclical capital reserve) for exposures situated in another

Member State of 2.5% of the total risk exposure of the date from

where the competent authority of another Member State has established a rate exceeding

2.5% of the total risk exposure. If it was recognized by the Czech

National Bank rate exceeding 2.5% of the total volume of risk

exposure, this rate shall apply,



(d) the rate of countercyclical capital reserve) for exposures situated in another

than the Member State of the amount laid down by the competent authority other than the

Member State, the Czech National Bank has not set a different rate

referred to in subparagraph (e)). To the section rates exceeding 2.5% of the total volume of

the risk of exposure shall be disregarded. If the rate increases, the

from the time of the expiry of 12 months from the date of the notice; However, this does not apply,

If the rate decreases, the



(e) the rate of countercyclical capital reserve) for exposures situated in another

than the Member State set out in the rate of the Czech National Bank.



section 64



The capital reserve to cover systemic risk



(1) the capital reserve to cover systemic risk for the

liable person is given by the relation



SRB = sr. TRE,



where:

SRB indicates the capital reserve to cover system

the risk for the compulsory

person, expressed in Czech Crowns,

SR indicates the rate of capital reserves to cover

systemic risk for the compulsory

the person, the amount of which and the date of use,

establishes the Czech National Bank,

TRE indicates the total amount of risk exposure

in accordance with article 92, paragraph. 3 of the regulation, as set out

on an individual or consolidated basis,

expressed in Czech Crowns.
(2) If by way of derogation from paragraph 1, the Czech National Bank stipulates that

calculation of capital reserves to cover systemic risk only applies

on the part of the total risk exposure depending on the geographical

the location of the exposures in individual States, or accepted for exhibition

located in other Member States the rate of capital reserves to cover

systemic risk in the amount laid down by the competent authorities of the

the Member States, then the capital reserve to cover systemic risk

for the mandatory person calculated by



n

SRB ' = sum of sri. Trey + (sri. TRE ')

I = 1



where:

SRB ' indicates the capital reserve to cover system

the risk for the mandatory person modified

According to the geographical location of the exposures and rates

capital reserves to cover systemic risk

in other Member States recognised the Czech

National Bank, expressed in Czech Crowns,

Sri indicates the rate of capital reserves to cover

systemic risk for exposure to mandatory

persons located in the State and, the amount of which and the day

Since when is used, establishes the Czech national

the Bank. If the exposure placed in the

State capital reserve to cover system

risks not covered, assigned to them in the

the calculation of the rate of sri = 0%,

and indicates the State

n indicates the total number of States in which the

It has required the person placed their exposure

and does not apply to them because the rate of the sr

The Czech National Bank for them to recognise the rates

capital reserves to cover system

the risk of the

authorities of the Member States or the

exposure in them placed the capital reserve

to cover systemic risk does not apply,

Trey indicates the part of the total volume of the risk

TRE exposure determined in accordance with article 92

paragraph. 3 of the regulation, where the relevant exposure

are geographically located in the State and,

TRE ' indicates the remaining part of the total volume of

the risk of exposure, which are covered by the capital

reserve to cover systemic risk

and that is located in the Czech Republic or in

States for which has not been recognized by the rate of the capital

reserve to cover systemic risk

laid down by the competent authorities of the

the State, on an individual or consolidated

basis, expressed in Czech Crowns.

Meanwhile,



n

TRE = TRE ' + SUM Of Trey

I = 1



(3) the method of determining the geographic location of risk exposures in a particular

the State is the same as for the relevant exposures in the case of the countercyclical

capital reserves. The remaining part of the risk of exposures whose location

in this way cannot be determined, the person shall be deemed mandatory for risk exposure

located in the Czech Republic.



(4) the rates of capital reserves to cover systemic risk shall apply

the date and amount of published the Czech National Bank.



section 65



Security capital reserve



Security capital reserve for the compulsory per person

calculated by



CB = sb. TRE,



where:

CB indicates security capital reserve

for the mandatory person expressed

in Czech Crowns,

SB denotes the rate of security capital reserves

determined in accordance with the law on banks

the Act on savings and credit cooperatives,

the law on the capital market, business

TRE indicates the total amount of risk exposure

in accordance with article 92, paragraph. 3 regulation laid down

on an individual or consolidated basis,

expressed in Czech Crowns.



section 66



Capital for systemically significant institution



(1) reserve Capital for systemically significant institution for

the required person calculated by



SIIB =. TRE,



where:

SIIB indicates capital reserve for systemically

an important institution in the Czech

Crowns,

indicates the rate's capital reserve

for systemically significant institution

TRE indicates the total amount of risk exposure

in accordance with article 92, paragraph. 3 regulation laid down

on an individual or consolidated basis,

expressed in Czech Crowns.



(2) the determination of the resulting capital reserves for systemically important

institution and capital reserves for systemic risk, if by

also on exhibition outside the Czech Republic shall be governed by the following rules:



and if the required person) on a consolidated basis shall be subject to the capital

the reserve for global systemically important institution and the capital reserve

an important institution for a different system, in the final result

the capital reserve, which is the higher of these,



(b) if the person is required) on a consolidated basis shall be subject to the capital

the reserve for global systemically important institution, the capital reserve

Another important institution for systemically and capital reserve to cover

systemic risk, in the final outcome of the capital

the reserve, which is the highest of them,



(c) if the person required to) an individual or subconsolidated basis

subject to capital reserve for another important institution and system

capital reserve to cover systemic risk, in the final

the result of the capital reserve, which is the higher of them.



(3) if the capital reserve to cover systemic risk by

the only exposure that are located in the Czech Republic in the final

the result of this capital added to the higher of the following capital

provisions for systemically significant institution:



and for global capital) a systemically significant institution and



(b) capital reserve for another) systemically significant institution.



(4) where paragraph 2 applies and the person is a member of the group,

which also is a member of the global systemically significant institution or other

systemically significant institutions, so this required a person on an individual

the basis of the combined capital is subject to a reserve, which is at least equal to the

the sum of the security capital reserves, countercyclical capital

reserves and higher capital reserves from the pair of covering the capital

reserve for another systemically important institution and the capital reserve

for the cover of systemic risk, which shall apply on an individual

basis.



(5) shall apply paragraph 3 and the person is a member of the group,

which also is a member of the global systemically significant institution or other

systemically significant institutions, so this required a person on an individual

the basis of the combined capital is subject to a reserve, which is at least equal to the

the sum of the security capital reserves, countercyclical capital

the reserve, capital reserve for another important institution and system

capital reserves to cover systemic risk, which apply

on an individual basis.



The combined capital and restrictions associated with it



§ 67



(1) the person maintains a combined capital reserve

through equity tier 1. Is not entitled to this

use the equity tier 1 capital, which is required to maintain for

cover the capital requirements under article 92 of the regulation or for the fulfilment of the

corrective measures and other measures referred to in the Act on banks, law on

savings and credit cooperatives, the law of business capital

market or under other legislation.



(2) the person meets the individual capital reserves, which are on

applicable, tier 1 capital, which has for this purpose to the

There, in this order:



and security capital),



(b) the counter-cyclical capital reserve)



c) capital reserves other than those referred to in subparagraphs a and b)).



(3) a person who completely fulfils the combined capital reserve,

may decide on the distribution of equity tier 1 only

the extent to which does not reduce the equity tier 1 to such

the level where the combined capital has already been met;

the Division of equity tier 1:



and payment of emoluments) share of the profit,



(b)) the provision of fully or partly paid shares or other

capital instruments referred to in article 26(3). 1 (a). and) Regulation,



(c) the repayment or repurchase) own shares or other capital

the instruments referred to in article 26(3). 1 (a). and made a compulsory regulation)

person,



d) repayment of amounts paid in connection with the equity instruments

referred to in article 26(3). 1 (a). and) Regulation,



(e) allocation of items) referred to in article 26(3). 1 (a). (b) to (e))) Regulation.



section 68



(1) a person who fails to comply with a combined capital reserve,



and the maximum amount to be calculated) of a possible Division in accordance with paragraph 2, and without

undue delay inform about it the Czech National Bank,



(b)) before it calculates the maximum amount of potential distribution is not

shall be entitled to



1. decide on the allocation of equity tier 1 under section 67, paragraph. 3,



2. assume the obligation of payment of the variable component of the remuneration or a specific

pension benefits or pay a variable component of remuneration, if

the obligation to payment was created at a time when the person did not meet the required

the combined capital reserve,



3. make payment related to the secondary tier 1 capital instruments,



(c)), through the activities referred to in subparagraph (b)) shall not amount higher

than the highest amount possible Division in accordance with paragraph 2.
(2) the person Required to calculate the maximum amount of possible division by

the relationship



MDA = (PI + PYE-T). (F),



where:

PI indicates the profit for the current financial period covered

the equity tier 1 by

Article 26, paragraph. 2 of the regulation, which was created

Since the last decision on profit distribution

or the adoption of any of the measures referred to in paragraph

1 (a). (b)),

PYE indicates earnings for the previous accounting period included

the equity tier 1 by

Article 26, paragraph. 2 of the regulation, which was created

Since the last decision on profit distribution

or the adoption of any of the measures referred to in paragraph

1 (a). (b)),

T indicates the tax that would have been payable if the

the profits were divided by PI and PYE,

(F) indicates a multiplier factor.



(3) the multiplier factor (F) shall be determined as follows:



and) if the equity tier 1 maintained a required person that

It is not used for the purposes of compliance with the requirement of capital referred to in article 92

paragraph. 1 Regulation, expressed as a percentage in relation to the total volume

risk exposure in accordance with article 92, paragraph. 3 the regulation is the first

(the lowest) the interval of the combined capital reserves, or

is higher than its lower limit and does not exceed the upper limit,

then F = 0,



(b)) if the tier 1 equity capital maintained by a person that the mandatory

It is not used for the purposes of compliance with the requirement of capital referred to in article 92

paragraph. 1 Regulation, expressed as a percentage in relation to the total volume

risk exposure in accordance with article 92, paragraph. 3 of the regulation, is in the second

the interval of the combined capital reserves, or higher

than its lower limit and does not exceed the upper limit, then F =

0.2,



(c)) if the tier 1 equity capital maintained by a person that the mandatory

It is not used for the purposes of compliance with the requirement of capital referred to in article 92

paragraph. 1 Regulation, expressed as a percentage in relation to the total volume

risk exposure in accordance with article 92, paragraph. 3 regulation, located in the third

the interval of the combined capital reserves, or higher

than its lower limit and does not exceed the upper limit, then F =

0.4,



(d)) if the tier 1 equity capital maintained by a person that the mandatory

It is not used for the purposes of compliance with the requirement of capital referred to in article 92

paragraph. 1 Regulation, expressed as a percentage in relation to the total volume

risk exposure in accordance with article 92, paragraph. 3 regulation, located in the fourth

the interval of the combined capital reserves, or higher

than its lower limit, then F = 0.6.



(4) the lower limit and the upper limit of each interval is given by

relations



CombiB

DHq = -------- . (q-1)

4



CombiB

HHq = -------- . (q-1)

4



where:

DH denotes the lower border of the each interval,

HH indicates the upper limit of each interval,

CombiB indicates the total combined capital

the reserve, which has required a person

keep, expressed in Czech Crowns,

q indicates the serial number of the interval

and take the values 1, 2, 3, or 4.



§ 69



(1) the limitation under section 68, paragraph. 1 concerns only payment appropriations, which should

result in a reduction of equity tier 1 or reduce the profits for

the conditions that the postponement or non-payment will not make the failure event

or the condition for the initiation of insolvency proceedings relating to the

the liable person.



(2) If the person does not meet the combined mandatory capital reserve and

intends to make payment of the amount of the potential distribution or accept some

of the measures referred to in section 68, paragraph. 1 (a). (b)), it shall inform without undue

delay the Czech National Bank and provide it with at least the information on the



and the amount of the capital maintained the) required by a person in



1. equity tier 1,



2. secondary tier 1 capital and



3. tier 2 capital,



(b) the amount of the normal profit) of the accounting period and the profit for the previous financial

period,



(c) the amount of the possible) the highest Division calculated in accordance with section 68, paragraph. 2,



d) envisaged measures, if:



1. the payment of profit shares,



2. purchases of its own shares or other capital instruments referred to in

Article 26, paragraph. 1 (a). and compulsory regulation by the person)



3. the payment on the next tier 1 capital instruments, or



4. the payment of the variable component of the remuneration or a specific pension benefits without

irrespective of the fact whether this is supposed to happen on the basis of the new

the obligation to pay or on the basis of obligation arising at a time when mandatory

the person did not meet the requirement related to the combined

the capital reserve, and



(e) the anticipated impacts of the measures referred to in) (d)) on equity

tier 1 capital or profits referred to in subparagraph (b)).



(3) the person shall ensure that the Required accuracy of quantification of the impact of the amounts and

the proposed measures referred to in paragraph 2 (a). (e)) and the accuracy of the calculation of the

the highest amount possible distribution and is capable of the Czech National Bank on the

request the accuracy of this calculation.



section 70



The essentials of the plan to restore the capital



A plan to restore the capital contains



and) measures to ensure increasing capital ratios required

person in order to meet the requirement of the combined capital reserves in full

the range, including a capital increase, their plan and time frame,



(b) estimates of the financial data), at least in the range of estimates of revenue and expenditure and the

a forecast balance sheet for the time frame referred to in subparagraph (a)), and



(c)) the information that demonstrate feasibility with the plan to restore the capital.



PART THE FOURTH



RULES FOR THE LIMITATION OF RISK



TITLE I OF THE



THE RULES FOR QUALIFYING HOLDINGS OUTSIDE THE FINANCIAL SECTOR, LARGE EXPOSURE

AND TRANSFER OF RISKS THE BANK BRANCH FROM OTHER THAN THE MEMBER STATE OF



(Section 13, paragraph 2, section 14, paragraph 3, and article 15, paragraph 2, of the law on banks)



section 71



Qualifying holdings outside the financial sector bank branch from other than

the Member State of



Bank branch from other than a Member State applies, the conditions for

qualifying holdings outside the financial sector, mutatis mutandis, in accordance with article 89, paragraph.

1, 2 (a). 3 (b). (b)) and article 91 of regulation that is applicable

the capital of this branch is the sum of tier 1 capital and tier

2, which shall not exceed one third of the equity tier 1 of this branch.



The great exposure of the Bank branch other than the Member State of



section 72



A branch of the Bank other than the Member State applies the rules of large

exposures by analogy with articles 403 to 387, with regulation by the applicable

capital means the applicable capital Bank branch from other than

the Member State referred to in section 71.



section 73



Bank branch from another Member State than the cuts of the limits by analogy with the

Article 395, paragraph. the regulation also



and exposure in covered bonds) in accordance with article 129, paragraph. 1, 3 and 6

Regulation, and in the amount of 75% of the value of the exposure,



(b)) off-balance sheet documentary credits and undrawn credit facilities,

medium low risk according to annex I of the regulation, up to 50%

their values,



(c) exposures to recognised exchanges).



§ 74



Bank branch from other than a Member State applies rules for

Similarly, the transfer of the risks referred to in articles 404 to 409 regulation.



TITLE II



THE RULES FOR THE ACQUISITION OF CERTAIN TYPES OF ASSETS



(To section 14, paragraph 3, and article 15, paragraph 2, of the law on banks and section 11, paragraph 2, of the law on

savings and credit cooperatives)



§ 75



(1) a person may not acquire or claim on a share of the child

a person who has a qualifying holding on to this mandatory person separately

or acting in concert with another person.



(2) a person may acquire equity instruments issued by a person who has

the mandatory participation of a qualified person referred to in paragraph 1, only when the

present the following conditions:



and) required a person who intends to acquire the equity instruments issued by the person,

the mandatory participation of a qualified person referred to in paragraph 1, is in

the position of the market maker and the position of the Czech National Bank proves

before the first acquisition of a capital instrument issued by the person who has the

mandatory participation by the qualified person referred to in paragraph 1,



(b)) these capital instruments shall, for the purpose of making a market and is

in its business portfolio and



(c)), the fair value of all equity instruments of one issuer that

is the person who has the required person by a qualified participation referred to in paragraph

1, shall not exceed 1% of the capital required of the person established in the

an individual basis.



§ 76



(1) a branch of the Bank from other than a Member State may not acquire the share or

a child of a claim on a person who has a qualifying holding on

Foreign Bank, of which it is a branch, alone or acting in concert

with another person.



(2) a branch of the Bank other than the Member State may acquire capital

instruments issued by a person who has a foreign bank, of which it is a branch,

qualified participation referred to in paragraph 1, only at the current meeting

These terms and conditions:



and from another bank branch) than of the Member State which intends to take

equity instruments issued by a person who has a foreign bank, which is

Branch, a qualifying holding referred to in paragraph 1, is in the position of the creator

the market and its position of the Czech National Bank shows before the first

the acquisition of a capital instrument issued by the person who has the foreign

the Bank, which is an affiliate of, a qualified participation referred to in paragraph 1,
(b)) these capital instruments shall, for the purpose of making a market and is

in its business portfolio and



(c)), the fair value of all equity instruments of one issuer that

is a person who has a foreign bank, of which it is a branch,

qualified participation referred to in paragraph 1, shall not exceed 1% of the capital

This branch.



TITLE III



RULES FOR THE FINANCING OF THE ACQUISITION OF CERTAIN TYPES OF ASSETS



(To section 14, paragraph 3, and article 15, paragraph 2, of the law on banks and section 11, paragraph 2, of the law on

savings and credit cooperatives)



§ 77



(1) a person shall not provide loans even to exhibit locking

or payment instruments such as guarantees, letters of credit, with a view to the adoption of

loan for the purchase of capital instruments, which were issued



and this person, compulsory)



(b)) a legal entity with a qualified interest in the mandatory person



(c)) of the legal person which is controlled by the person with a qualifying holding

the required person



(d)) of the legal person which is controlled by persons acting in concert,

If these people control the required person



e) a legal person, which belongs to the persons acting in concert by

(d)),



(f)) of the legal person which is controlled by one of the persons acting in

conformity in accordance with subparagraph (d)), or



(g)) legal person controlled by a person liable.



(2) a person shall not provide loans even to exhibit locking

or a payment instrument in order for acceptance of the loan to finance the acquisition of



and that is not a share) in the form of a security, the persons referred to in paragraph

1, or



(b)) subordinated claims for a person referred to in paragraph 1.



(3) a person shall not provide loans even to exhibit locking

or a payment instrument in order for repayment of the deposit base of the Member

or another Member of the deposit required of the person.



§ 78



(1) a branch of the Bank other than the Member State shall not grant credit

or issue securing or payment instruments, in particular the guarantee or

letters of credit, in order to take credit for the purchase of equity instruments

that have been issued



and) the foreign bank, which is a branch,



(b)) a legal entity with a qualified interest in the foreign bank, which

It is a branch,



(c)) of the legal person which is controlled by the person with a qualifying holding

the foreign bank, of which it is a branch,



(d)) of the legal person which is controlled by persons acting in concert and

These individuals dominate the foreign bank, of which it is a branch,



e) a legal person, which belongs to the persons acting in concert by

(d)),



(f)) of the legal person which is controlled by one of the persons acting in

conformity in accordance with subparagraph (d)), or



(g)), a legal entity controlled by the foreign bank, of which it is a branch.



(2) a branch of the Bank other than the Member State shall not grant credit

or issue securing or payment instruments with a view to the adoption of

the loan, for the financing of



and the acquisition of the stake) is not in the form of the security, to the persons referred to in

paragraph 1, or



(b)) to obtain the children of the debts owed by the person referred to in paragraph 1.



(3) a branch of a bank other than the Member State shall not grant credit

nor exhibit the lock or the payment instrument in order for the repayment of the

basic member deposit or another Member of the deposit in foreign

the Bank, which is a branch.



TITLE IV



RULES FOR THE ASSESSMENT OF ASSETS



(To section 14, paragraph 3, and article 15, paragraph 2, of the law on banks and section 11, paragraph 2, of the law on

savings and credit cooperatives)



section 79



Object categorization



(1) Mandatory person categorizes exposure represented by the claims of

arising from the performance of activities resulting from the activity (the permissions

"receivables from financial activities"). Receivables from financial

the activities are mainly loans, receivables from financial

lease receivables from deposit, receivables from guarantee claims

Letter of credit, factoring, receivables, prepayments for acquisition of securities

granted for a period longer than 30 days, the claims from the sale of securities

securities with maturity of sales prices for a period longer than 30 days,

the receivables from the sale of securities outstanding, within 30 days after the

the specified settlement date.



(2) the Categorization of the selected exposures shall not apply to the exposure of classified

in the trading portfolio, receivables from holding securities, accounts receivable

from derivatives, and receivables from other than the financial activities, in particular

claims from labour and similar relationships, provided by operating

the backup or backups on the acquisition of tangible and intangible assets,

accounts receivable from the sale of stock, tangible and intangible assets.



§ 80



The basic category



(1) a person Required to be classified receivables from financial activities in these

categories:



and the failure of the debtor of the receivable) without,



(b) failure of the debtor's claims).



(2) If required, the person for the purposes of capital ratios applied for

retail exposures the definition of default of the borrower at the level of the transaction,

it applies in the same manner and for the purposes of categorization of these exposures.



§ 81



Claims without the debtor's failure



(1) failure of the debtor of the claim without the required a person to be classified into the following

subcategories:



the standard claims)



(b) the reference of the claim).



(2) a person may not claim without failure of the borrower pursuant to paragraph

1 subdivide, if, in assessing whether there has been a reduction in their

the accounting values, accesses to the portfolio of individually insignificant

the claims.



(3) a receivable is deemed to be a standard, if the repayment of principal and

accessories are properly paid, none of them are overdue for more than

30 days, for any of the debts of the debtor was not in the last 2 years

due to the deterioration of its financial situation carried out restructuring and

There is no reason to doubt its full repayment, without mandatory person

She walked up to the satisfaction of his claim.



(4) a receivable is deemed to be monitored, if from the inception of the

claims to the deterioration of the financial situation of the debtor, or repayment of principal

or accessories are covered with both problems, but none of them

It is not past due more than 90 days, or for any of the claims were not in

the last 6 months due to the deterioration of the financial situation of the debtor

implemented restructuring, and with regard to the financial and economic

the situation of the debtor, it is likely the full repayment, without mandatory

the person proceeded to satisfy its claim from the collateral.



section 82



The claim is the failure of the debtor



(1) failure of the debtor are deemed non-performing receivables.

The person is required to be classified into the following subcategories:



non-standard receivables)



(b) bad debts),



(c)) loss.



(2) a claim shall be regarded as substandard, if its the full repayment of the

in particular, with regard to the financial and economic situation of the debtor

uncertain. Its partial repayment is highly likely, without

required the person proceeded to satisfy its claim from the collateral.

The claim shall be regarded as non-standard also if payments are

the principal or accessory covered with problems, but none of them is not

past due for more than 180 days.



(3) the claim shall be regarded as dubious, if its full repayment is

in particular, with regard to the financial and economic situation of the debtor high

unlikely. Its partial repayment is possible and likely, without

would have required the person approached the satisfaction of his claim.

The claim shall be regarded as dubious if the repayment of principal

or accessories are covered with problems, but none of them is after

maturity date longer than 360 days.



(4) a receivable is deemed to be a loss if its full repayment is

in particular, with regard to the financial and economic situation of the debtor.

It is assumed that this claim is not met or will be

satisfied only partially in a very small amount, without mandatory person

She walked up to the satisfaction of his claim. The claim is

considered lossy also if are repayment of principal or

accessories after the maturity longer than 360 days. For lossy is also

It considers the claim on the debtor, on whose property was declared

bankruptcy, except for the material substance of the claim arising after the

a declaration of bankruptcy.



section 83



The classification into categories and subcategories



(1) if the required person more receivables from financial activities

the same borrower and any one of them meets the characters of the failure of the debtor,

all claims on the debtor are classified into the categories of claims

with the failure of the debtor and in its context in the same subcategory claims.

Mandatory person refrain from claims of financial activities

classified for the purposes of capital ratios to the category retail

exposures for which the debtor's failure to monitor the level of transactions.



(2) if the claim meets the criteria at for inclusion in a more

the subcategories, it required a person to be classified in the worst of these

the subcategories. Mandatory person refrain for receivables from financial

activities included for the purposes of capital ratios to the category

retail exposures, which follows the failure of the debtor to the level

the transactions.



(3) the Restructured debt required a person to be classified at the time of

restructuring into a subcategory in which the receivable was or
should be included before the restructuring. If the required person is able to

demonstrate that the level of risk of non-payment of claims against the State before the

the restructuring declined, it may move up to a better subcategory,

If consistency is preserved in the approach to the claim for the purposes of

capital ratio; without prejudice to the provisions defining

standard and monitored the claim.



(4) a claim, which was the mandatory person in connection with the assignment of

the Group of its other claims, the person required to be classified at the formation of the

subcategory in which was or should be included in crucial market share

of ceded claims. If a person is required to demonstrate that the rate of

the risk of non-payment of claims against the State before forwarding

decreased, it can move up to a better subcategory, if it is maintained

consistency in the approach to the claim for the purposes of the capital ratio.



(5) the person at least once per quarter, examines the accuracy of

the classification of receivables into categories and subcategories, and in conformity with the results of the

the findings carried out the appropriate changes in their classification. Mandatory person may

the accuracy of the classification of the insignificant volume of claims to examine in

a longer period than the quarter, but at least once a year, if it

corresponds to the nature of the claim or the debtor and, if it is able to

demonstrate sufficient caution in the application of such a procedure.



§ 84



Individual and portfolio approach



(1) a person assesses whether to reduce the book value (

"depreciation") of individual receivables or receivables with

similar characteristics due to credit risk (hereinafter referred to as

"portfolium of homogeneous claims").



(2) the person submits the portfolio approach for individually

evaluated claims for which write-down has not identified individually. In

this case required the person also assesses whether the depreciation of the

the portfolio of homogeneous neznehodnocených the claims individually. If

the person does not have the required more homogeneous claims, the portfolio approach

does not apply.



(3) a person may apply for access to a portfolio of individually

the non-homogeneous claims.



(4) depreciation of the portfolio of receivables, which occurred in the

as a result of events that occurred after the occurrence of the receivables, it is objectively

demonstrated by the existence of observable data, which indicate a reduction

expected future cash flows from this portfolio, although this

the reduction cannot yet identify individual claims

included in the portfolio.



(5) the indicator of the reduction of the expected future cash flows from the

the portfolio of receivables may be particularly



and the increase in unemployment in the relevant) areas



(b) a reduction in the prices of real estate), the relevant areas



(c) the adverse conditions in the sectors), in which the debtors operate,



d) increase the number of borrowers who fully draw his limit and repaid their

the minimum possible amount of debts.



§ 85



Value adjustments



(1) if the depreciation of receivables, required the person performs

valuation adjustment. If the required person or part of the claim, which

corresponds to the loss of the write-down, not reply, constitute the claim to this

the loss of a corrective entry.



(2) a person shall be assessed at least once every quarter, the adequacy and

justification value adjustments to receivables and regulates their

the amount of.



(3) a person is able to demonstrate the adequacy and reasonableness

adjustments.



§ 86



Method for the determination of the amount of the loss from depreciation of the



(1) loss from devaluation can be set using the



and) discounting expected future cash flows,



(b)) coefficients, or



c) statistical models.



(2) For the purposes of the implementation of the prudential rules required a person

sets the amount of the loss from the write-down by the same method as for the purposes of

accounting and financial statements.



(3) a person may, in determining the amount of the loss from depreciation of the

take into account the collateral, if the



and) ensuring and related applicable principles and procedures used

leading to the reduction of the credit risk based claims that are

legally effective and enforceable in all jurisdictions which are applicable

for claims of collateral,



(b) manage the risks accordingly) which is or may be

exposed in the context of the provision, which takes into account,



(c)), regardless of considerations of ensuring the full assessment continues

the credit risk associated with the claim,



(d)) is the collateral within a reasonable time, at least in the zpeněžitelný value, which

is taken into account in the calculation of the losses from write-downs; If the collateral in

over the past 3 years zobchodován, it is possible to determine the amount of the loss

of depreciation taken into account up to the price of the last trade,



(e)) is in case of failure of the debtor or, if applicable,

the person who took over the collateral deposit, storage, or

the Administration, in particular if the decision on the bankruptcy of some of these

persons, or occurred when another established a credit event, entitled

to satisfy his claim within a reasonable time from the relevant facts



(f)) the degree of correlation between the value of the collateral and the credit quality of

the debtor is insignificant,



(g)) is a provider of personal collateral sufficiently reliable so as to

It was secured with sufficient certainty that the reduction level achieved

credit risk corresponds to the extent of this reduction is taken into account in

the calculation of the losses from write-downs, and



(h)) has established and applies a clear criteria for assessing the

eligibility of providers of personal collateral.



§ 87



Discounting expected future cash flows



(1) if the required person uses the discounting of expected future

cash flows, the loss from the write-down of the claim as the difference

between the book value of the receivable and the present value of the expected

of future cash flows discounted at the original effective from Receivables

interest rate. The original effective interest rate is the effective interest

established at the time of origination of a receivable.



(2) effective interest rate corresponds to the rate of interest, which will be discounted

the expected future cash flows until the due date of the claim, or, if the

It's preferable to a shorter period of time, and that the book value of the receivable.



(3) in the calculation of effective interest rates required the person estimated the expected

future cash flows considering all contractual terms and conditions, in particular

early repayment options and fees. If you cannot reliably

to provide for the expected future cash flows, the contractual cash

flows. When calculating the effective interest rate required by the person does not

future losses from write-downs due to the credit risk.



section 88



The coefficients



(1) if the required person uses the coefficients, the loss of

accounts receivable depreciation so that the difference between the principal claim

plus accrued accessories and the obligatory party zohledněným

by ensuring that the claims shall be multiplied by the coefficient



and in the case of 0.01) Receivables,



(b) in the case of non-standard 0.2) claims



(c)) in the case of doubtful debts 0.5,



(d) in the case of 1.0) loss claim.



(2) Mandatory person also examines whether the loss of correctly classified

Watch, substandard or doubtful debts is not higher than the loss of

provided for in paragraph 1. If the loss is greater than the loss provided for in

in accordance with paragraph 1, required the person increases the coefficient, but to



and receivables) was lower than 0.2,



(b)) a non-standard claims was lower than 0.5 and



c) doubtful debts was less than 1.0.



(3) If a mandatory person in the affected claims the principle of time

resolution (accrual principle), in the calculation referred to in paragraph 1 shall apply

the principal claim nezvýšenou of accrued and calculated accessories

the loss increases by an amount equal to naběhlému accessories.



(4) If a person sets out mandatory loss of reduction in the book value of the

the claim, in particular, the receivables acquired for consideration, which is awarded to the

the time of the transaction, the purchase price shall proceed

that detects whether, at the time of the case, in particular, to the

the time of the acquisition of the claims, there is a difference between the cost of

receivables and deposits accounts receivable increased by accrued accessories.



(5) If there is a difference referred to in paragraph 4 and has character



and when the discount) cost of the claim is less than the principal amount

Receivables increased by accrued accessories, mandatory person in loss

fixed pursuant to paragraph 1 shall be reduced by the discount or discount, if

the discount rate greater than this loss,



(b)), when the premium purchase price claims is higher than the principal

Receivables increased by accrued accessories, mandatory person in loss

determined in accordance with paragraph 1 for the premium increase.



(6) if there is a difference referred to in paragraph 4, the mandatory person establishes

the loss referred to in paragraph 1.



(7) loss from the write-down of the claim, that person has a mandatory

connection with the assignment of groups of its other claims,

to principal receivables increased by accrued accessories and less

impairment was greater than the sum of the principal would be ceded
Receivables increased by accrued less repair and accessories

in the case of items that would be required to avoid referral and person

fixed loss of depreciation of individual receivables. This does not apply,

If required, the person shall proceed pursuant to section 81, paragraph. 4 the last sentence.



§ 89



Statistical models



(1) a person at the start of the assessment of the portfolios of individually

immaterial claims has



and) created in terms of the number of sufficiently large portfolio of individually

the non-homogeneous claims to ensure the statistical

the significance of the losses; the portfolio of individually insignificant homogeneous

the claims required for the purposes of the use of the person of the statistical model

includes all claims of this type, and even those that are

decided to retire from the portfolio of individually immaterial claims

because she had enough information to assess their deterioration,



(b)) a long enough time series concerning the claims,

as a rule, comparable with an average maturity of individually

small claims; the length of the time series for the portfolios of individually

immaterial claims with an original maturity of more than one year is

However, usually at least one economic cycle, or at least 3

years, and



(c)), taking into account statistical model the time value of money, all of the

the expected future cash flows associated with the portfolio of receivables and

the maturity of the receivables portfolio and causing losses of

write-down of receivables in the portfolio at the time of the accounting

case.



(2) the person monitors the actual losses associated with the portfolio

individually immaterial claims, and tests the accuracy of the estimate of losses on

the basis of new data on the real failures of the borrowers in the portfolio in

appropriate time period depending on frequency of instalments; taken into account and

information about extraneous claims individually, which knocked out of

portfolio of individually immaterial claims, because it had enough

information for the assessment of the impairment.



(3) the person shall verify regularly the suitability of the statistical model and the

the accuracy of the settings of the parameters.



(4) the Mandatory person consists of adjustments to portfolios, individually

minor claims of statistical estimation of losses from these

portfolios, calculated using statistical models, if this

the amount of receivables not reply.



(5) a person is able to demonstrate a sufficient caution when

the use of statistical models to determine the amount of losses to portfolios

individually immaterial claims.



§ 90



Reserves for off-balance sheet items



(1) a person shall be assessed at least once every quarter, the adequacy and

the soundness of reserves, which are in accordance with the accounting methods of the form to

off-balance sheet items, and modifies their amount.



(2) a person is able to demonstrate the adequacy and reasonableness of the reserves

in accordance with paragraph 1.



§ 91



Rules for the assessment of the assets of the Bank branch from another Member

State



Bank branch from other than a Member State applies rules for

assessment of assets under section 79 to 90.



THE HEAD OF THE



RULES OF LIQUIDITY THE BANK BRANCH FROM OTHER THAN THE MEMBER STATE OF



(To section 14, paragraph 3, and article 15, paragraph 2, of the law on banks)



section 92



A branch of the Bank other than the Member State complies with the liquidity

Similarly, the requirements referred to in articles 411 and 412 of the regulation.



PART THE FIFTH



DISCLOSURE OF INFORMATION



(§ 11a paragraph 6 and section 11b, paragraph 7 of the law on banking., § 7b, paragraph 10, of the Act.

the savings and credit cooperatives and section 16a paragraph. 10, and section 16b, paragraph. 2

the law on the capital market business)



The content of the information intended for publication



§ 93



The contents of the data, which required a person publishes



and about myself, about) the composition of the shareholders or members, the structure of the consolidation

Unit, which is part of, on its activities and the financial situation of the

an individual basis, is shown in annex 10 of this order,



(b)) of the related relations between members of the consolidated Group, which is

part of it, and its management and control system, is given in annex No.

11 of this Decree.



§ 94



Content data on the types and range of investment services provided is

given in annex No. 12 of this Decree.



section 95



The content of the information published by the branch of the Bank from a Member State other than the

is given in annex No. 13 of this Decree.



Periodicity and time limits for public disclosure of information



section 96



(1) a person on a quarterly basis publish data referred to in annexes 10 and 12

of this order.



(2) a person who discloses information under part of the eighth

the regulation also publishes quarterly figures



and) pursuant to article 437 paragraph. 1 (a). and with the exception of full regulation)

matching items, filters, and deductions on the balance sheet within the audited

the financial statements and



(b)) (a) in accordance with article 438. (c) to (f))) Regulation.



(3) a person who discloses information about related

the relations between the members of the consolidated Group and the management and control

the system, year published data according to annex No. 11 of this Decree.



§ 97



(1) the required information as of the date the person discloses



and) 31. March, 30. June 30. September until 6 weeks after the end of the

the calendar quarter



(b)) 31. December until 4 months after the end of the calendar year.



(2) If a person applies as a mandatory accounting period of the marketing year

instead of the calendar year, you may publish the quarterly balance sheet

quarterly profit and loss statement and the ratios referred to in annex No.

10 of this order to the last day of each quarter of the marketing year,

and it



and) to 6 weeks after the end of the relevant quarter of the marketing year, and



(b)), by 4 months after the end of the marketing year.



(3) quarterly data on financial situation required a person publishes

together with the data for the 3 preceding quarters.



(4) at the same time with the data referred to in paragraphs 1 to 3 shall publish the required person i

the date of their publication. The first sentence shall apply, mutatis mutandis, also to the

supplement and correction of already published data.



§ 98



(1) a branch of the Bank other than the Member State publishes quarterly

information on the date of



and) 31. March, 30. June 30. September until 6 weeks after the end of the

the calendar quarter



(b)) 31. December until 4 months after the end of the calendar year.



(2) If a branch of the Bank of the Member State, other than the claims as

the accounting period of the marketing year rather than the calendar year, the

published quarterly balance sheets, quarterly profit and loss statement and the

ratios in accordance with annex 13 of this order to the last day of the

each quarter of the marketing year, and



and) to 6 weeks after the end of the relevant quarter of the marketing year, and



(b)), by 4 months after the end of the marketing year.



(3) at the same time with the data referred to in paragraphs 1 and 2 shall publish a branch of the Bank of

other than the Member State of the date of their publication. Sentence first

applies also mutatis mutandis to replenishment and repair of already published data.



The method and the structure of the publication of the data



§ 99



(1) a person publishes information referred to in the eighth section of the regulation, the law of

banks, law on savings and credit cooperatives, the law of

business on the capital market, and this order in Czech language on their

website in a folder marked "Mandatory under the common

released information ", in the form of neuzamčených data files

suitable for download in xls/xlsx format. Included in this folder

are at least the information referred to in the first sentence for the past 5 years, the last 5

annual reports and consolidated annual reports for the last 5, if the

the obligation to make it; These reports also contain financial statements

Certified Auditor.



(2) the person shall communicate, without undue delay, the Czech National Bank

the exact address of the website, which is provided for in

paragraph 1 available, and an update to this address. This address

mandatory person also reported in its annual report.



§ 100



(1) a branch of the Bank from a Member State other than the published required

information in English on its website in a folder under the

the common designation "Compulsorily released information", in the form of

neuzamčených appropriate data files for download, and in the format

xls/xlsx.



(2) a branch of the Bank other than the Member State without undue delay

the Czech National Bank shall communicate the exact address of the website,

that the information referred to in paragraph 1 are available, and an update

This address.



§ 101



If the data required for publication subject to reporting obligations

to the Czech National Bank, the required person is published in similar

the structure, which was used in the statements submitted by the Czech National Bank,

unless otherwise provided in the structure of the published data directly applicable provision

The European Union governing the disclosure of such data.



The contents of the data verified by an auditor



§ 102



(1) the content of the data on an individual or consolidated basis 31.

December, or on the last day of the marketing year for the publication of the

liable person, which are verified by an auditor, is given in annex No.

14 of this Ordinance.



(2) the person shall publish the information referred to in paragraph 1 in the Czech language to the
their website in a folder under the shared marking

"Compulsorily released information".



section 103



(1) the content of the information to the date of 31. December, or on the last day of the economic

year intended for the publication of a branch of the Bank from other than a Member State,

that are verified by the Auditor, is given in annex No. 14 of this

the Decree.



(2) a branch of the Bank other than the Member State shall publish the information referred to in

paragraph 1, in Czech language on its website in a folder

under a common designation "Compulsorily released information".



PART SIX



SOME OF THE INFORMATION AND DOCUMENTS SUBMITTED BY THE CZECH NATIONAL BANK



(Section 24 para 1 and 2 of the Act on banks, section 27, paragraph 1, of the law on

savings and credit cooperatives and section 16(1). 5 of the law on business

the capital market)



section 104



Information on the system of internal capital



(1) the information on the system of internal capital presents Czech

the National Bank required a person who according to the law on banking, the law on the

savings and credit cooperatives, or of the law on business

capital market fulfils the obligations relating to the internal

capital ^ 13).



(2) a person referred to in paragraph 1 shall inform the Czech National Bank on the

the system, which in the context of its management and control system has introduced and

maintained for the



and the establishment and continuous assessment) internally set capital needs

and



(b) planning and ongoing maintenance) internally set capital

resources in the amount, structure and layout, to sufficiently cover

the risks to which it is or might be exposed. Always inform about the

management and organizational prerequisites and the arrangement, procedures,

outputs and their use and control mechanisms of the system.



(3) the scope and detail of the information corresponds to the scale and complexity of the

the system of internal capital required of a person referred to in paragraph 1.

If the information about this system on a consolidated basis, compulsory

the person referred to in paragraph 1 shall indicate the data broken down by individual

persons who are a member of the same consolidated Group and are included in the

its system of internal capital.



(4) a person referred to in paragraph 1 shall inform the Czech National Bank on the

the system of internal capital for the past accounting period

no later than 30 June 2005. in April, agreed with the Czech National Bank otherwise.

If the nature of the matter otherwise requires, includes information about the system

internal capital plan information and the facts behind the

accounting period and on the plan of further maintaining internally set

capital ratios.



(5) a person referred to in paragraph 1 shall submit the information about your system

internal capital in paper and electronic form,

If you disagree with the Czech National Bank otherwise. The format of the data used in the

the presentation of this information in electronic form agreed mandatory person

referred to in paragraph 1, with the Czech National Bank.



§ 105



Information about transactions within a group



(1) a person shall notify without undue delay the Czech National Bank

the negotiation of the transaction of a value exceeding 1% of the balance sheet total required

persons, which means that the required person transferred credit risk,

which the person is exposed,



and mandatory) which is controlled by the person,



(b)) which controls the same person as the required person or



(c)) that controls the required person.



(2) the Transactions referred to in paragraph 1 shall in particular



and the acquisition of the assets of that) is not traded in an active market,



(b) the acquisition of the portfolio of receivables), which are not traded on an active

market,



(c) the acquisition of the securitised exposures),



(d) the granting of credit) syndikátního participation in the credit risk or

a similar business, or



(e) the provision of a guarantee or negotiation) credit derivative.



(3) if the transfer of credit risk on a mandatory person in

as a result of more related transactions, those transactions for

the purpose of the assessment of the value in excess of 1% of the balance sheet total persons required

in one transaction.



Section 106



Information about the structural changes



Mandatory person shall inform without delay the Czech National Bank on the



and the negotiation of the purchase of the business) of the plant, or any part thereof from the person



1. which is controlled by the person liable,



2. controlled by the same person as the required person or



3. which controls required a person



(b)) the negotiation, direct, indirect, or synthetic capital investment in

a person controlled by the same person as the person liable, if this

capital investment exceeds 10% of the capital of the person to which the

investment is directed, and



(c) a decision to take part in) the conversion of business corporations.



§ 107



Information about outsourcing



(1) If a person is required to ensure its important activities or to

their support is arranged by outsourcing, it shall inform in good

advance of the Czech National Bank. Part of this information is an overview of the

the following activities to be performed, and basic identifying information about

outsourcing providers.



(2) For the purposes of paragraph 1, the major activities of the means



and the activities of such importance) that lack or failure of their

the provision can have a significant impact on the ability of a person to meet mandatory

prudential rules or on the continuity of the performance of its activities,



(b)), the provision of activities is subject to the granting of permission to

the activities of the competent supervisory authority,



(c)), activities that have a significant impact on the risk management of the mandatory of the person,



(d)) risk management related to the activities referred to in points) to (c)).



(3) the person shall inform in good time the Czech national

the Bank of any material changes in the facts referred to in paragraph

1, and in particular of any change of the outsourcing provider, and change the nature,

the scope or complexity of the activity carried out in this way.



(4) On a branch of the Bank from other than a Member State, paragraphs 1 to 3

apply by analogy.



section 108



Information on approaches for the calculation of capital requirements



(1) a person who uses a standardized approach, shall inform the

The Czech National Bank without undue delay of registered credit rating

export credit agency or the Agency, which has opted for the purposes

the determination of credit quality.



(2) a person who uses an internal approach for the calculation of the volumes of

risk-weighted exposure amounts or for the calculation of capital requirements

other than the capital requirements for operational risk shall inform the

The Czech National Bank on the results of the calculations of their internal approaches for

their exposure or a position listed in comparative portfolios along with

an explanation of the methodologies used, and according to the status of 31. December

no later than 30 June 2005. in April of the following year, and in accordance with the

The European Union governing the submission of such information and comparisons

the portfolio ^ 14).



(3) a person who uses an external rating for the purposes of determining the

the credit quality of the securitised exposures, shall notify, without undue

the delay of your choice registered credit rating agency, the Czech National Bank.



(4) If a person intends to change the required one of the not yet used

approaches to calculating capital requirements or make changes in the

used internal access or an internal model, inform the

intent without undue delay, the Czech National Bank.



(5) On a branch of the Bank from other than a Member State, paragraphs 1 to 4

apply by analogy.



section 109



For information about the small business portfolio



(1) a person shall notify without undue delay the Czech National Bank



and options) on the use of imposing capital requirements to tools

in the small business portfolio as the sampled instruments

the investment portfolio and



(b) on completion of the procedure) under (a)).



(2) On a branch of the Bank other than the Member State (1)

apply by analogy.



section 110



Information about the risk of non-compliance with debt



(1) a person shall notify without undue delay the Czech National Bank

of all the repos and securities lending or borrowing or

commodities within the meaning of regulation ^ 15), for which there was a failure of the counterparty.



(2) On a branch of the Bank other than the Member State (1)

apply by analogy.



section 111



For information on changing the accounting period



(1) If a person intends to change the mandatory accounting period, inform the Czech

National Bank of this intent, without undue delay, however, at least 12

months before the planned change.



(2) On a branch of the Bank other than the Member State (1)

apply by analogy.



section 112



Information about foreign currency positions



(1) a person shall notify without undue delay the Czech national

the Bank, if



and) the absolute value of the net currency position required persons in any foreign

currency in Czech crowns or fixed under article 352 of the regulation

exceeds 15% of the capital required of the person specified on the individual

basis, or



(b)) the total net monetary position required persons provided for under article 352

regulation exceeds 20% of the capital required of the person established in the

an individual basis.



(2) On a branch of the Bank other than the Member State (1)

apply by analogy.



§ 113



Information on the remuneration of



(1) a person shall inform the Czech National Bank on the remuneration in the

the previous accounting period no later than 30 June 2005. June.



(2) information about the remuneration contains
and the number of workers with rewards) corresponding to the amount of eur 1 0000 0000

more for the accounting period,



(b) the inclusion of workers) work under (a)), broken down by

areas of business within the framework of the activities required of the person including the information about

job duties of these workers,



(c) the basic structure) data on the individual remuneration of personnel according to the

(a)), broken down by area of business activities in the framework of the compulsory

of the person.



(3) On a branch of the Bank other than the Member State, paragraphs 1 and 2

apply by analogy.



section 114



For information about changing a person in management key features



(1) If the person carries out the required amendment of the person in the management key features

shall inform without delay the Czech National Bank. Part of the

the information is



and the exact functions) which,



(b) clarification of the change;) This does not apply, as regards the amendment by

solely on the initiative of the person from the Office,



(c)) the basic identifying information about both the persons concerned, and



(d)) the term changes and any other relevant information to the notified

change.



(2) On a branch of the Bank other than the Member State (1)

apply by analogy.



section 115



Information about operations with selected risk counterparties or

geographical areas



(1) if the mandatory person in the framework of its activities has concluded arrangements or

another form is active against the opposing party or in the country, which are or

could be considered as non-transparent or otherwise potentially

risk, including offshore centres [section 18, paragraph 2 (b), (f))],

shall inform without delay the Czech National Bank. This also applies

in the event that the activities required of a person for the client or his

request.



(2) part of the information is



and the identification of the counterparty or the State), of which, as



(b) a concise description of the notified activity),



(c)), specify whether it is a custom activity required of the person or activity of the

the initiative of the client, and



d) time and any other relevant information to the notified activity;

If it's relevant, is part of the notification



1. at least the framework of quantifying the scope of activities,



2. at least the conceptual assessment of the risks associated with the activity and



3. basic information about the person or persons directly involved or with the

Another important link to the notified activity.



(3) On a branch of the Bank other than the Member State, paragraphs 1 and 2

apply by analogy.



section 116



Information on the possible significant risk to reputation



(1) a person shall notify without undue delay the Czech national

the Bank, if the record can be a significant threat to reputation, which has, or

could have an impact on the performance of the activities required of the person.



(2) a person shall notify without undue delay the Czech National Bank

about



and) significant criminal activity, which may endanger or endangers the performance of

its activities, and



(b) a significant trend in the area) the fight against legalization of criminal incomes

the activities and the financing of terrorism.



(3) the information referred to in paragraphs 1 and 2 is a concise description of

of the phenomenon and its key material, time, and other characteristics.

If it's relevant, is part of the description, at least the framework of quantification

imminent or already resulting from the adverse financial impact

of the phenomenon and the basic information about the person or persons in relation to the

device phenomenon.



(4) On a branch of the Bank from other than a Member State, paragraphs 1 to 3

apply by analogy.



PART SEVEN



TRANSITIONAL AND FINAL PROVISIONS



section 117



Mandatory person shall state its legal and internal ratios in accordance with the requirements

According to § 11 and 29 to 5. September 2014.



§ 118



Data by State to 30. June 2014, the Commission shall publish the required person and branch

Bank of a Member State other than in accordance with the provisions of part five

Decree No. 23/2014 Coll., on the performance of the activities of banks, savings and

credit unions, and securities traders, as amended effective June 30.

June 2014.



section 119



Decree No. 23/2014 Coll., on the performance of the activities of banks, savings and

credit unions, and securities traders is hereby repealed.



§ 120



The effectiveness of the



This Decree shall take effect on the date of its publication.



Governor:



Ing. Singer, Ph.d., in r.



Annex 1



For a more detailed definition of certain requirements for remuneration



The scope of the



1. Mandatory person applies



and the General and other policies) pay on the total remuneration system

required people to pay all workers,



(b)) the specific policies and procedures to selected areas of the total remuneration

the system of remuneration of the person required to pay at least the selected

the staff and workers groups made up by them, whose activities have

a significant influence on the overall risk profile of the mandatory of the person (hereinafter referred to as

"selected"), unless the application of the procedures referred to in points 13 to 20

It was not a reasonable impact of selected worker or group of selected

workers on the overall risk profile of the mandatory of the person; the provisions of point (a)

(c)) shall remain unaffected; for the introduction, maintenance and application of the criteria for

determining the selected workers corresponds to the required person.



(c) the status of mandatory) if the person on the relevant market, the

mandatory person mutatis mutandis all the specific policies and procedures that

the status of the person is required for these purposes be deemed significant, always

If the proportion of the total balance outstanding of all mandatory persons on the

the market reaches or exceeds 5%.



2. remuneration Policy referred to in point 1 a mandatory person in an appropriate manner

When the remuneration of the other legal or natural persons, if

in fact, operate for the required person and this activity has

a significant influence on the overall risk profile of the required person or whose

remuneration is similar as for selected workers provided for under point 1 (a). (b))

points 2 and 4, and regardless of the legal relationship with the person liable, the legal

the form and the geographical location.



The General principles of the remuneration



3. remuneration policy and procedures



and the proper and effective) support risk management and are in accordance with it,



(b)) don't encourage the risk-taking beyond the extent of risk accepted

required by the person,



(c)) are in accordance with the strategy, objectives, values and long-term interests of the

mandatory of the person,



(d) measures to forestall) include conflicts of interest in connection with the

remuneration and



e) ensure that the variable component of the remuneration as a whole do not restrict the ability of

persons required to strengthen capital.



Specific policies and procedures of the remuneration



Selected assumptions and the arrangement of the total remuneration system



4. The inspection body shall be approved and periodically evaluates the policy summary

pay selected employees or groups; This activity

It considers the specific control activities of the supervisory authority.



5. Application of the principles of the remuneration of the workers or their selected groups

at least once a year subjected to the total independent internal

examination for compliance with the overall principles of the remuneration

selected groups of workers, approved by the control authority.



6. Without prejudice to the provisions of other laws, policies,

pay selected employees clearly distinguish between the criteria for

the determination of the



and the fixed part of the remuneration) base, which should in particular reflect the relevant

professional experience and job description of the worker, and



(b)) of the variable component of the remuneration which should reflect sustainable performance

mandatory of the person, take into account the risks and performance above and beyond what is

required to meet the description of the work of the selected employee.



7. The staff of the internal control functions shall be remunerated according to the

the objectives established for the control function, independently of the

the performance of the departments they control.



8. The remuneration of the workers in the management of the performance of the risk management function, the function

the internal audit and compliance function is under the direct supervision of the Committee for

remuneration, or the inspection authority.



Performance measurement in the context of the remuneration



9. If the performance rewards



and the total remuneration is) based on a combination of assessment of individual

work performance and the performance of the Department s assessment

the overall results of the mandatory of the person,



(b)) in the evaluation of the individual performance of work shall take account of the financial

and non-financial criteria



c) performance evaluation is based on a multiannual basis, so that

ensure that the remuneration is based on the longer-term

the results and that the release of parts of the variable components of remuneration based on the

performance evaluation is spread over the period, which takes account of the length

business cycle required the person and related risks, and



(d)) for the purposes of performance measurement procedure the calculation of the variable component of the remuneration

or the moving components of the remuneration as a whole includes adjustments that

taking into account all types of existing and future risks and costs

ensure the required capital and liquidity.



The form and structure of the remuneration



10. the fixed and the variable component of the total remuneration of the worker selected are

appropriately balanced; the fixed component is large enough to share

the total fees to be applied fully flexible approach to

moving the rewards, including the possibility of a variable component of remuneration

doesn't do. Mandatory person establishes an appropriate ratio between fixed and floating
component of the remuneration individually for each person or group of persons,

with:



and does not exceed the variable component) for any individual 100% fixed

the folder its total remuneration, unless the shareholders or members of the compulsory

the person shall approve a higher maximum level the ratio between fixed and floating

component of remuneration, provided that the overall level of the variable components

any individual shall not exceed 200% of the fixed component of its total

rewards, and



(b) the person may apply) for the purposes of calculating the amount of the variable component

Rewards discount rate up to 25% of the total volume of the variable components

rewards for any of the individual, provided that it is paid

through tools that are deferred for a period of at least 5 years.



11. A higher proportion of fixed and variable components of total remuneration in accordance with section 10

(a). and) is approved the following procedure:



and the partners or members) required of the person acting on the basis of a detailed

the recommendations drawn up by the liable person, containing the reasons for the

the required approval and its scope, including an indication of the number of the selected

workers will be covered, their functions, and the expected

the impact of the requirement to maintain orderly capital,



(b)) the members of the mandatory of the person acting at least 66% majority

provided that it is represented at least 50% of the shares or the equivalent

ownership shares, or in the case of failure to comply with this condition, Act

75% majority of the represented shares or ownership shares,



(c)) person in sufficient time to inform all

members of the mandatory of the person that will ask for consent

proposal under item 10 (a). and)



(d)) shall immediately inform the person of the Czech National Bank on its

recommendation to the shareholders or members and the proposed higher maximum

the ratio of fixed and variable components of the total rewards and its rationale and is

able to the Czech National Bank show that the proposed higher ratio is not in

conflict with the obligations required of the person under this Ordinance or the regulations,

with regard, in particular on capital requirements,



(e)) shall immediately inform the person of the Czech National Bank on the decisions

adopted by its members, including any higher

maximum ratios according to point 10 (a). and) that have been approved,



f) selected staff, which referred to a higher maximum level

the variable component of the remuneration in accordance with section 10 (b). and directly concerned, should not)

Alternatively, directly or indirectly, to apply when the related discussions

any voting rights that may be associates or members of the

mandatory of the person; mandatory person for these cases adjusted in its articles of Association

rules for the assessment of the ability of the general meeting or the Member meeting

a quorum.



12. The allocation of the moving components of the remuneration of staff takes into account selected

all types of existing and future risks.



13. Entitlement to a substantial part of the variable component of the remuneration,

at least 40%, is delayed for at least the next 3 to 5 years; the length of the

the period is well established with regard to the nature of the business required a person

its risks and the activities of the selected employee. Shall be entitled to

delayed part of the variable component of the remuneration cannot be granted faster than on the

proportional basis to the total length of the periods into which it returns

the claim of a substantial part of the variable component of the remuneration oddáleno. In the event that the

part of the variable components of remuneration is achieved an extremely high volume,

oddáleno entitlement at least equal to 60% of this volume.



14. A substantial part of it, but at least 50%, oddálené 50% neoddálené

the variable component of the remuneration of the selected employee, is made up of an appropriate

a combination of



and) capital instruments or other assets in accordance with the legal

forms required of the person, the tools related to equity instruments

or, in the case of a person that has not issued equity instruments adopted by the

to trading on a regulated market, other non-monetary instruments, and



(b)) if appropriate, of the instruments referred to in articles 52 or 63 or regulation

other tools, which can be fully converted into instruments of equity capital

tier 1 or write off and that always duly accordingly

take into account the credit quality of the mandatory of the person, taking into account the principle of

the permanent functioning of the mandatory person in the financial market in accordance with

the subject and plan its activities and are accordingly

applicable for the purposes of the variable component of the remuneration.



15. the instruments referred to in section 14 shall be for a reasonable period in accordance with the principles of compulsory

the persons held to be the motivation of the selected personnel is consistent

with the long-term interests of the mandatory of the person.



16. the instruments referred to in point 14, issued the required person or person with a narrow

link with no additional tools that are not considered appropriate

way to take due account of the credit quality of the mandatory person in

taking into account the principle of permanent operation of the mandatory person in the financial market in the

accordance with the subject and plan its activities, unless the person is mandatory

able to prove otherwise.



The variable component of the remuneration limits



17. the right of the variable component of the remuneration or any portion

granted only if it is sustainable, given the overall financial

the situation required the person and performance of the Department concerned and justified

individual work performance of the selected employee. In

otherwise, the claim, or shall be granted only in limited

the range.



18. Mandatory person takes measures to allow it to withdraw already

granted, a variable component of remuneration or any part thereof and require the

back already paid a variable component of remuneration; the provisions of other

without prejudice to the legislation.



19. In the case of adverse financial performance, or its decline is

total variable component of remuneration substantially reduced, including the application of the

the measures referred to in points 17 and 18, both in the current remuneration and

rewards for the previous period.



20. The mandatory person lays down specific criteria for the use of the system

the rejection of, or the whole of the claim to remuneration and rearview requiring

remuneration already paid. The following criteria shall apply in particular to the situation, when

selected worker



and participated in or bore) of the responsibility for the negotiations that led to the

significant losses required a person



(b) to comply with the appropriate standards of trust), vocational

competence and experience.



Special pension benefits



21. The principle of providing any special pension benefits,

provided by the selected workers outside the framework of any area

the program mandatory for workers, including the possible occupational

insurance, are in accordance with the strategy, objectives, values and

long-term interests of the mandatory of the person. Special pension benefits

are not considered contributions under occupational pension schemes,

supplementary pension insurance with State contribution, the supplementary pension

savings, pension insurance or similar normal posts

for the staff of the mandatory of the person. Special pension benefits are part of the

the variable component of the remuneration. If the worker



and leaves before the onset of) entitlement to a pension, the special pension benefits will be

required by the person oddáleny for 5 years in the form of the instruments referred to in section 14,



b) reaches the entitlement to a pension, his pension will be granted special benefits

in the form of the instruments referred to in point 14 and required the person will be required is 5

years to hold.



To prevent possible circumvention of the purpose of regulation of remuneration



22. The variable component of the remuneration is not paid in the form of tools, or,

that would allow circumvention of the requirements of this Ordinance or of any other

the legislation.



23. Mandatory person contracted to undertake the selected workers to exert

insurance or other hedging strategies associated with their remuneration

or responsibilities that might jeopardize or limit the effects of the risk-

elements of remuneration policy-oriented.



24. The variable component of the remuneration which is guaranteed regardless of performance,

is granted exceptionally and only in the event that the required person keeps

sufficient capital equipment, and it is only with respect to the acquisition of

new selected workers; This method of compensation is limited to the

the period of the first year after the onset of the new selected worker.



25. the contractually guaranteed variable component of remuneration does not correspond to the proper management of

the risks nor the principle of pay for performance, and therefore is not included in the future

remuneration plans.



26. the redundancy provided by selected personnel in connection with the

early termination of the relationship reflects their performance achieved during the

of the period and is designed in a way that doesn't reward failure.



27. The reward, which is associated with the replacement or payment from the contract in the

the previous post is in accordance with the long-term interests of the mandatory of the person,

including detention, suspension, performance and the provisions on withdrawal of granted

the variable component of the remuneration or paid.



Other remuneration policy



Special provisions for compensation in the case of public aid



28. If a person is required given the extraordinarily public support,



and a variable component limits the percentage) of parts of their net

revenue, so that it was in accordance with keeping the capital and in a timely

the termination of the provision of public support,
(b) the total remuneration system re-examined) so that, in accordance with the ordinary

risk management and long-term growth, and, if appropriate, lay down limits

the remuneration of the head of the authority, and



(c) the head of the authority is granted by the members) of the variable component of the remuneration only if

If it is justifiable.



Annex 2



For a more detailed definition of certain requirements for activities and committees

the supervisory authority



General provisions concerning committees



1. a person Required to ensure that the Committee is composed of the supervisory authority

non-executive members of the supervisory body, unless the law provides for the

otherwise.



2. the Committee on the activities of the supervisory authority, and other persons may participate in the

the Committee members, if it is appropriate and required the person shall ensure that,

that such an arrangement is clearly established, it cannot be

conflict of interest or domination or other undesirable influence decision making

non-executive members of the Committee and information on this fact is appropriately

available, and the public.



The remuneration Committee



3. a person Required to ensure that the members of the remuneration Committee are

sufficiently technically competent and experienced, in particular, to ensure

a competent and independent assessment of remuneration policies and procedures and proposals

motivational incentives for risk management, capital and liquidity.



4. The competence of the Committee for the preparation of proposals on the remuneration is the decision of the

relating to the remuneration, including those that have an impact on the risks and

risk management required the person received the mandatory control body of the person.

In the preparation of these decisions take into account the remuneration Committee to

the long-term interests of the shareholders or members of the mandatory people, investors and

other interested parties and to the public interest.



5. If you are in the control of the institution represented in accordance with other

the law required the person compulsory staff person shall ensure that the

a member of the remuneration Committee is one or more of the employees ' representatives.



The Committee for risk



6. the members of the Committee for risks are sufficiently technically competent and

experienced, so that they can fully understand and follow a strategy in the field of risk

and access required people to risk-taking.



7. the Committee shall be exercised in particular risks for the following activities:



and) provides advice to the inspection authority for the total current, and

the future of the person approach required for the risk of its strategy in the area of risk

and the accepted level of risk and control authority to assist it

carried out by the control over the implementation of the strategy by the persons in the high

leadership; the total liability of the management authority for the risks that does not affect;

and



(b) examine whether the valuation) of the assets, liabilities and off-balance sheet items

projected to offer clients fully takes into account the business model required

of the person and its strategy in the area of risk. If the projection of the risks to price

It is not in proper compliance with the business model and strategy required a person

in the area of risk assessment, the Committee shall submit to the supervisory body for risk plan

seeking to remedy the situation.



8. The inspection authority and the Committee for the risks they have adequate access to

information on the risk situation of the person required to control risks and to

to promote external consultancy services, if it is appropriate and necessary.



9. The inspection authority and the risk Committee shall determine the nature, volume, and format

the frequency of information concerning the risk assessment, which shall require.



10. The inspection authority and the risk Committee, in order to contribute to the implementation of

proper policies and procedures, review paid, without prejudice to the

the tasks of the Committee for remuneration, whether the incentives provided for in the overall system

remuneration shall take into account the risks, capital, liquidity and the likelihood and

the timing of the anticipated gain mandatory of the person.



The Nomination Committee



11. Members of the Committee for the appointment are sufficiently qualified and professionally

experienced, to be able to objectively assess the credibility of professional

competence and experience for selected personnel or potential

workers required persons.



12. The Nomination Committee carries out the following activities in particular:



and identifies and proposes to) the approval of the supervisory authority, the general meeting of

or membership meetings of candidates for vacant posts in the leading authority

mandatory of the person. While the Nomination Committee also assesses the balance

professional competence and experience and the diversity of the composition of that body

as a whole. The Nomination Committee will propose a description of the activities and capabilities

required for a specific function and estimates the estimated time range

liabilities related to the performance of functions; the Nomination Committee also recommends

target representation of the less represented sex in a given authority and policy

How to increase the number of representatives of the less represented sex in a given authority to

to achieve the objective;



b) regularly and at least once a year, evaluates the structure, size,

the composition and activity of the head of the authority and shall submit to the supervisory body

recommendations for any changes,



(c)), regularly and at least once a year, assesses the credibility of professional

competence and experience of each Member of the head of the institution and the head of the

the authority as a whole and serves the inspection authority of this evaluation report

and



(d)) shall periodically review the policy of the head of the authority in matters of selection and

the appointment of the persons in the top management and to submit a recommendation to the inspection

authority.



13. The inspection authority and the Committee for the appointment of the interim fulfilment of their

obligations on exercise, to the fullest extent their activities for

the purpose of that decision of the head of the authority and the Committee of the neovládala only

a person or a small group of people in a way that was damaging to the interests of the mandatory

of the person.



14. The inspection authority and the appointment of the Committee have the opportunity to use all the

the kinds of resources that they deem appropriate, including external advice, and

for this purpose available to them sufficient financial resources.



15. The inspection authority and the Committee for the appointment and assessment of the

the members of the steering body of the mandatory of the person taken into account sufficiently wide range of

the properties and capabilities of persons and for this purpose are implemented also

approved the principles required of a person that supports the diversity within

of the competent authority.



Annex 3



For a more detailed definition of certain requirements for credit risk management



System for the implementation of the trades



1. Mandatory person shall Institute and maintain the system for the implementation of the trades, so that

were limited to those subjective aspects of the decision-making process, which

do not contribute to the quality of this process.



2. a person Required to ensure that persons with a special relationship to the

are negotiated on the basis of the conditions customary in the market.



3. a person Required to ensure that information is available, that will allow her to

even before the negotiation of trade to assess the financial and economic situation

(credibility) of the opposing party, and even in the case of syndicated loans, participation

on credit risk, structured products and similar stores.

Required the person to negotiate trade without disables assessment of the creditworthiness of the counterparty.



4. a person Required to ensure that each store is assessed with regard to its

the amount and complexity.



5. a person Required to ensure that in the framework of the system for the implementation of the

the shops are, depending on the type of product and the type of counterparty

assessed, and the time horizon, taking into account the maturity of the exposure,

in particular, the



(c)) the financial and economic situation of the counterparty,



(d)) the purpose of the implementation of the trade,



(e) the source of the repayment period, including a proportion of) the exposure value to revenues of the counterparty

and including an assessment of persistence and binding of these revenues,



(f) the quality and adequacy of collateral),



(g)) the situation in the economic sector of the counterparty; If the exposure is secured

property by ensuring mandatory shall examine the person also ratio values

exposure to the value of the collateral,



h) macroeconomic conditions in the State of residency of the counterparty, including phases

the economic cycle,



I) conditions under which the business is to be carried out,



(j)) applicable law, especially if it is about foreign legislation and



to a specific funding), in case the assets ratio also own resources

used by the counterparty to the value of this asset.



6. Mandatory person in managing the credit risk mitigation techniques used and

limiting this risk tools, including reinsurance, with the understanding that the use of

These techniques and tools cannot replace the evaluation of financial and

the economic situation of the counterparty, it cannot be in the assessment of the counterparty

considered a replacement source of repayment of the exposure, or zohledňováno in the

internal rating of the counterparty. The assessment referred to in paragraph 5, it is evident

that exposure will be paid properly and on time, without satisfying the

of collateral.



The system of measurement and monitoring of credit risk



7. Mandatory person has such a system for the measurement and monitoring of credit risk,

which is proportionate to the nature, scale and complexity of the activities, will underpin

all the major sources of credit risk and allows you to evaluate the impact on the

income and expenses and the value of the assets, debt and off-balance sheet items

so, in order to provide pristine picture of the extent of risk podstupovaného.



8. a person Required to ensure that its system of measurement and monitoring of the credit

risk allows, in particular,



and, in a timely manner) accurately and completely recorded all the shops so that the

address all associated with them out of credit risk,



(b)) was to evaluate all significant sources of credit risk,
(c) tracking) to establish exposures to groups of connected economically and



(d)) to measure credit risk summary for all business units and

compare the degree of podstupovaného of risk limits approved by the internal

in the appropriate time period with regard to the size and nature of the podstupovaného

risk and regulatory limits.



9. a person Required to ensure that its system of measurement and monitoring of the credit

risks resulting from negotiated deals on ensure, in particular,



and the financial and economic) monitoring the situation with regard to the type of counterparty

deals agreed with the counterparty,



(b) monitoring of compliance with the conditions of the Treaty) of the counterparty,



(c) monitoring of the value of the collateral valuation),



(d) monitoring of current problems) which immediately require corrective

measures, and



(e) the adequacy of the amount) monitoring provisions and reserves.



10. Mandatory person shall also ensure that the



and) personnel, including those in top management and the relevant

committees, if established, shall mean the assumptions from which the system

the measurement and monitoring of credit risk, and



(b)), from which the system's assumptions is based are sufficiently

documented.



Limits for credit risk management



11. Mandatory person takes and keeps the system limits for credit management

the risks and the procedures for their implementation and compliance to ensure that

not to exceed the rate of credit risk accepted by the managing authority,

where appropriate, the Executive Committee, on which the managing authority this competence

delegated, or provided for to the competent supervisory authority. For this purpose,

in particular, the



and) will ensure that the system of limits and the procedures used to measure and

credit risk monitoring are integrated and linked and set of limits

takes account of other risks, which is or may be exposed, particularly

market and liquidity risk,



(b) ensure the adequacy of the system limits) due to its size,

organizational arrangements, the nature, scope and complexity of the activities,

capital and capital requirements. Depending on the following factors

provides for partial limits, for example for each counterparty, individual

States, geographical area or for each activity;



(c)) shall ensure that the minor levels of credit risk are used to

not to exceed the total accepted measure of credit risk and



(d) take into account when setting limits) position resulting from the total

the structure of assets, debt and off-balance sheet items.



Annex 4



For a more detailed definition of certain requirements for the management of market risk



The system of measurement and monitoring of market risk



1. Mandatory person has such a system for the measurement and monitoring of market risk,

which is proportionate to the nature, scale and complexity of the activities and that

will underpin all the major sources of market risk and allows you to evaluate

the impact of changes in market rates and rates on income and expenditure and on the value of the

assets, debt and off-balance sheet items to provide pristine

picture of the extent of risk podstupovaného.



2. a person Required to ensure that its system of measurement and monitoring of market

risk allows, in particular,



and, in a timely manner) and record all transactions, so that

address any associated out market risk,



(b)) these transactions properly appreciate. For these purposes it is necessary to use the

the valuation carried out independently of the commercial activities (services).

Mandatory person has established procedures for the valuation, including the



1. the detailed identification of the sources of data for revaluation and



2. method of determining the market price;



(c) to capture all of the relevant sources) market risk of all transactions

and evaluate the impact of changes in market rates and rates are appropriate

to the nature, scale and complexity of transactions,



(d) provide for the aggregation of individual method) positions, so that in the aggregate

There has been no substantial distortion of the podstupovaného risks, including

establishing the number of inappropriate bias or length of time zones in the gap

(differential) analysis, and that all important positions and cash flows

sensitive to market risk were covered by the system in a timely and coherent manner,



e) to measure market risk summary for all business units and

compare the degree of podstupovaného of risk limits approved by the appropriate

time period with regard to the size and nature of the risks and podstupovaného

the regulatory limits and



(f)) to measure the interest rate risk in each currency in which the person has a mandatory credit

sensitive position, separately. If the interest rate risk is measured in two or

multiple currencies together, this procedure is necessary to justify a significant

correlations, currencies, by mandatory person in these currencies has negligible

activities or other facts, and clearly establish the conditions for the

where such a procedure is possible.



3. Mandatory person shall also ensure that the



and) personnel, including the relevant persons in the high management and the

the members of the relevant committees, if established, shall mean the assumptions of

which system of measurement and monitoring of market risks is based on, and



(b)), from which the system's assumptions is based are sufficiently

documented.



Limits for market risk management



4. Mandatory person takes and keeps the system limits for market management

the risks and the procedures for their implementation and compliance to ensure that

not to exceed the level of market risk accepted by the managing authority or

laid down by the competent supervisory authority. For this purpose the required person

in particular, the



and) will ensure that the system of limits and procedures used for the measurement monitoring

market risks are integrated and linked and set of limits takes into account the

other risks, which required the person is or may be exposed,

in particular, credit and liquidity risk,



(b) ensure the adequacy of the system limits) due to its size and

the way of management, the nature, scope and complexity of the activities, and capital and

capital requirements. Depending on these factors provides for partial

limits, for example, for each of the business units, or portfolio

specific instruments;



(c)) shall ensure that the components of market risk limits are used to

total not exceeded the accepted measure of market risk,



(d) take into account when setting limits) as position resulting from the daily

trading, so position resulting from the overall structure of the assets, debts and

off-balance sheet items, and



e) limits to limit the constructs the impact of potential changes in

market risk factors on the income and on the value of the assets, debts and

off-balance sheet items, that takes into account the speed with which it is

Unable to close their positions.



Market risk stress testing



5. Mandatory person performs stress testing for impact assessment

the extremely adverse market conditions. Mandatory person takes these

the results into account when determining and verifying the reliability of procedures and

limits for market risk management, so that the losses incurred in the

as a result of adverse sharp changes in market conditions, do not cause

her inability to or involved in its capital ratios under

fixed level.



6. the person shall ensure that the Required stress testing is carried out on the basis of the

stress scenarios. In the formation of stress scenarios required a person

It takes into account your risk profile in the area of market risks, in particular

the size and structure of the business portfolio and the factors against which change

is or could be the most vulnerable.



7. the person shall ensure that the Required



and regular stress testing) implementation, taking into account the

the size, structure and nature of the business portfolio,



(b) verification of the validity of the assumptions) regular stress scenarios with

regard to the changing conditions on the market, or within the mandatory of the person. Changes

assumptions are the stimulus for editing scenarios and subsequent implementation

stress tests;



(c) submission of the results of the stress tests) persons in the top leadership, to

the scope of the risk management belongs.



Annex 5



For a more detailed definition of certain requirements for liquidity risk management



Measurement and monitoring of liquidity risk



1. For the purposes of liquidity risk management is required, the person reasonable procedures

measuring and monitoring the liquidity position so that it is possible to specify the steps

mandatory of the person required to manage liquidity risk.



2. Mandatory person shall ensure that the procedures of measurement and monitoring of liquidity

position, in particular, allow:



and the measurement and comparison of the inflow) and the outflow of funds,



(b) the expected net) monitoring cash flows on a daily basis for

period of at least 5 working days in advance, the Assembly calendar a maturity

and the calculation of the liquidity position with regard to the contractual maturities.

If the person required to be classified into zones of assets with a shorter maturity than would

match the actual maturities of these assets, provides for these assets

the system of precipitation, which will reflect the market risk associated with the rapid

the sale of individual assets. If the person required to be classified into obligations

zones with a longer maturity than the actual due dates of these

debts, is able to demonstrate the legitimacy of such movements.



3. Mandatory person shall also ensure that the



and) personnel, including the relevant persons in the high management and the

the members of the relevant committees, if established, shall mean the assumptions of

which system of measurement and monitoring liquidity risk, and
(b)), from which the system's assumptions is based are sufficiently

documented.



Liquidity risk management in each of the major currencies and limits



4. For the purposes of liquidity risk management in each currency has a mandatory

person for the measurement, monitoring and control of liquidity required

persons in any of the major currencies, with whom he works.



5. If required, the person shall finance the assets held in one currency obligations

held in a different currency, analyzes the market conditions which may affect the

her access to the foreign exchange market, the possible conditions of exchange one currency for another

in various situations, and other conditions that may affect its

access to resources in the desired currency.



6. Depending on the volume of activities in the various currencies required a person

sets limits for liquidity risk management, both collectively for

all currency, as well as individually for each major currency that

works.



7. In determining the limits of mandatory person shall take into account also the impact of possible

non-standard conditions or exceptional circumstances of crisis.



Management of financial resources and access to the market



8. Mandatory person sufficiently conditioned and diversifies your financial

resources. For this purpose, in particular,



and creates and maintains the) regular contacts with major creditors, with

correspondent banks and other major trading partners and

clients,



(b) the degree of reliability of the individual) financial resources



(c) monitors the various financing options) of its assets and the development of these

options and



(d) monitors and maintains the option) access to the market for the sale of their

assets.



Scenarios for liquidity risk management



9. Mandatory person lays down the prerequisites for each scenario development

the volume and structure of assets, debt and off-balance sheet items and other

important factors for liquidity risk management scenarios, which, in particular,

include



and)



1. the volume of assets due to, and is able to recover,



2. the anticipated increase in volume, the most important asset and



3. the categorization of individual assets in terms of liquidity,



(b))



1. the volume of debt, including the definition of the usual levels of renewal due

debt and the normal growth of new deposits and



2. the average maturities of deposits and similar instruments to sight based

on historical experience,



(c) examination of the brain) of financial flows by means of credit commitments,

guarantees and letters of credit, fixed futures contracts and options and



(d)), other important factors that need to be taken into account when drawing up and

authentication scenarios for liquidity risk management, in particular the liquidity needs

associated with some of the activities required of the person and the activities of its clients

and other persons, including the settlement of trades for clients and other persons or

correspondent banking services.



10. the person shall ensure that Mandatory screening of the correctness of the assumptions, scenarios

liquidity risk management with regard to changing internal or external

the conditions; examination of the correctness of the assumptions of alternative stress

scenarios carried out mandatory person at least once a year. Changes in assumptions

are the stimulus for editing scenarios.



A contingency plan in case of liquidity crisis



11. a person Required to ensure that a contingency plan in case of crisis

liquidity provides, in particular,



and) ensuring accurate and timely information flows within the compulsory

persons, including the establishment of relevant events,



b) clear definition of the competencies and powers within the mandatory of the person,



(c) the possible ways of influencing the development of) assets, debt and off-balance sheet

items,



(d)) method of communication with major creditors, business partners,

other persons, clients and the public in the implementation of this strategy and



e) specification of additional backup sources of funding beyond the liquidity

reserve.



12. The mandatory person in appropriate time the periodicity of testing

feasibility and functionality of the contingency plan.



13. the person shall ensure that the Required updating the contingency plan with regard to the

changing internal or external conditions and the results of the testing plan.



Annex 6



For a more detailed definition of certain requirements for operational risk management



Operational risk management system



1. Mandatory person takes and maintains a system of operational risk management,

which is proportionate to the nature, scale and complexity of the activities and provides

at least



and the definition of operational risk)



(b)) of the principles and objectives of operational risk management,



c) operational risk management procedures,



(d) the scope, powers and) information flows in operational risk management

on all of the management and organizational levels,



e) information about significant events and losses incurred as a result of

operational risk,



(f) peace accepted operational risk) and



(g)) of any outlet of operational risk outside the mandatory person.



2. Mandatory person regularly evaluates and adjusts the system where appropriate,

operational risk management.



Recognition, evaluation, monitoring and reporting of operational risk



3. Mandatory person identifies the sources of operational risk.



4. a person Required to ensure that evaluation and monitoring of the operating

the risk is incorporated into its normal processes.



5. Mandatory person regularly evaluates and monitors the potential impact and

potential losses resulting from operational risk event.



6. Mandatory person shall ensure regular information to the appropriate personnel

about podstupovaném the operating risk associated with their activities

(reporting of operational risk).



Reducing operational risk



7. Mandatory person adjusts the degree of podstupovaného of operational risk

the application of appropriate methods of reducing the occurrence of or adverse impacts

the occurrence of operational risk events.



8. Mandatory person assess the risks, so the risks are very standing

beyond its direct effect, and shall decide whether to adopt the risk, reduce their

the possible effects, or that restricts or completely stops the activity.



9. For reducing operational risk required the person takes and also maintains a

the procedures for the



and management approaches, staff) of clients and other authorised persons to

tangible and intangible fixed assets required a person



(b) a response to a possible solution) the occurrence of security incidents and



(c) operational risk) solution, including risk models, risk, legal, and

compliance, in ensuring the supply of goods and services and outsourcing,

If the person is liable or considered to be applied, unless the risk is

outsourcing internally defined and managed as a separate risk

category.



Contingency planning



10. Mandatory person shall Institute and maintain contingency plans for cases of

the unscheduled interruption or restriction of their activities, failure to

the required person significant third parties or a failure of the outer

infrastructure.



11. Mandatory person lays down in the contingency plans at least this

measures:



and the activities of the following immediately after) the emergence of a crisis situation aimed

to minimize the damage,



(b)) the following activities after the crisis focused on the disposal of

the consequences of crisis situations,



(c)) how to back up, if it is relevant,



(d)) way to ensure safe operation, with an indication of the minimum features

which are retained, and



e) recovery activities, including activities undertaken by third

persons.



12. a person Required to ensure that appropriate personnel are

the emergency plans of the familiar and follow them.



13. a person Required to ensure that the contingency plans are regularly

tested, evaluated and, if appropriate, updated.



Information systems and technology



14. for the purposes of this section and sections 15 to 21 means



and) information system a partial functional unit, ensuring the acquisition,

storage, handling, processing and provision of information by using the

information technology,



(b)), information technology hardware and software. Technical

equipment means tangible technical computing resources and communication

techniques. Software means the programs, procedures, and

the rules necessary to ensure that the relevant technical equipment fitted

the desired function;



c) asset information system, information technology, information

stored in the information system and documentation information system,



(d) the authorisation of the user authentication process) his identity,



(e) authorization of the user authentication process) his access rights on

the basis of authentication,



(f) the confidentiality of the information) to ensure that information is accessible only to the

a user who is authorized to access



(g)) availability of the information to ensure that the information is for authorized

the user accessed in the specified time,



(h) ensure the integrity of information) the accuracy and completeness of the information and

the method of processing.



15. a person Required to ensure that the information systems security policy

contain



and the objectives of security of information systems),



(b)) the main policies and procedures to ensure the confidentiality, integrity, and

the availability of information and



(c) the scope and powers of the) field of the protection of assets and the performance of

information systems security policy.



16. The mandatory person shall ensure compliance with the security policy in

the individual information systems.



17. a person Required an analysis of the risks associated with information
systems. It defines the assets of information systems, the threats to them

, the vulnerabilities of the information systems, the probability of

implementation of threats and an assessment of their effects and countermeasures. Required a person

regularly update the analysis of the risks associated with information

systems.



18. In the area of security of access to the information required, the person shall ensure that the



and the allocation of access rights to users) in information systems,



(b)) a unique user authentication, which is preceded by its activities in

information systems,



(c)) access to information in information systems, only the user who

for this approach was authorized,



(d)) the protection of the confidentiality and integrity of authentication information,



(e)) the recording of events that threatened or undermined the safety of the

information systems security audit records, protection of

These records from unauthorized access, in particular by modifying the

(modifications) or destruction, and their preservation and



(f) the evaluation of the safety audit records) a worker who

does not have the ability to edit (modify) in information systems information

related activities, which is a security auditing alert.



19. In the area of security of communications networks, the person shall ensure that the required



and network connections) is under the control of the person required to external

communications network which is not under the control of the person required to

minimize the possibility of penetration into its information systems,



(b)) that when the transfer of confidential information to external communication networks

ensure



1. appropriate confidentiality and integrity of information and



2. reliable authentication of communicating parties, including the protection of

authentication information.



20. The mandatory person shall Institute and maintain measures for the physical protection of assets

information systems.



21. In the operation of the information systems required the person shall in particular ensure



and that change in the operated) information systems it is possible to perform up to

After the evaluation of the impact of this change on the security of information systems,



(b)) that operated by information systems is used only

tested software, for which the results of the tests have shown that the

the safety features are in accordance with the approved safety

principles of information systems. The results of the tests are documented;



(c)) that the service activities in information systems is

organised so as to minimise the threats to their security,



(d)) back up information and software operated by

information systems are essential to its functioning. Backed up

information and software are stored so that they are secure

against damage, destruction and theft; and



(e) regular checking and evaluation) the security of information

systems.



Annex 7



For a more detailed definition of certain requirements for the risk management of outsourcing



The system of risk management outsourcing



1. Risk management of outsourcing means



and the definition of the total access required) of the person to the risk of outsourcing

including a clear internal delineation of this risk, and that in the framework of the

risk management strategy required the person, and



(b) establishing and maintaining specific) procedures risk management outsourcing

including the procedures of recognition, evaluation, measurement, monitoring,

the reporting and control of the occurrence or impact of this risk.



2. Mandatory person has such a system for risk management of outsourcing, which is

proportionate to the nature, scale and complexity of the activities, which outsourcuje or

intends to outsource, and that will underpin and takes into account all significant sources

the risks of outsourcing and limit their possible negative impact on revenue and

the cost of the mandatory of the person and its overall risk profile. For this purpose,

It will establish and maintain these policies and procedures.



The General principles and practices of risk management in outsourcing



General requirements for the management and control system in outsourcing



3. Mandatory person shall Institute and maintain for the use of the strategy of outsourcing

including the establishment of a reasonable approach to outsourcing the insignificant

activities. In doing so, shall take into account and ensure that



and the use of outsourcing is not present) a material change in the

the facts on the basis it was mandatory to the person authorised to

the performance of the activities, in particular inadequate change in substantive, organizational

or other prerequisites for the exercise of activities, and



b) outsourcing has, if the resulting State would be in breach of

with the obligations of the person laid down in law mandatory.



4. the policies and procedures that support the reduction of the risk of outsourcing required

the person shall include, in particular,



and ensuring consistency and proportionality) assumptions of good governance and

management, risk management and internal control mandatory person in the use of

outsourcing, even in the case of the chaining of outsourcing (paragraph 8),



(b) ensure systematic risk management) outsourcing,



(c) the maintenance of an adequate level of quality) the management and control system

the mandatory use of persons and outsourcing,



(d) the responsibilities of the institutions and) the maintenance of persons that lead business mandatory

person, even when the use of outsourcing,



(e) the liability of a person) the maintenance required, even when the use of outsourcing,



(f) maintaining continuous) comply with the terms of the authorisation to conduct

activities required of a person even in the use of outsourcing and



(g)), with the option to exercise control and supervision of the use of independent

outsourcing.



Compliance with the prudential rules, even in the case of chaining

outsourcing



5. the person shall ensure compliance with the Mandatory legal obligations, in particular the

prudential rules, even when the use of outsourcing.



6. The violation of the conditions referred to in point 5, if the method definition

outsourcing, or the manner of its use of mandatory person leads or

could lead to circumvention of the purpose of prudential regulation of outsourcing. To do this,

mandatory person in particular shall ensure that its internal definition of outsourcing is

clear and prudent and in case of doubt, the mandatory of the person, whether it is

about outsourcing, decides to conservatively; in the case of business relations

mandatory of the person with other persons, that are not outsourcing, shall ensure

mandatory compliance with the legal obligations of the person, in particular the rules

a prudent business any other way with the fact that for the purpose

are the rules for outsourcing effectively usable.



7. The violation of the conditions referred to in section 5 is not required, the person shall not be

for outsourcing delivery of standardised products and equipment required

by default, a person, including the offered information about the market and the supply of goods,

facilities and services, with which it is associated to provide information required

person, which concern him or her, which belongs to the supplier,

unless the information readily available, and if it is required by a person other

reliably secured in an appropriate manner the effectiveness and efficiency of the

the supplies.



8. Chaining or use of outsourcing, outsourcing its

a provider for the provision of activities for the required person, shall be subject to

similar principles as the use of outsourcing by the person liable and can be

only if the



and) is not in conflict with the requirements for the outsourcing provider required

the person and the



(b) each person follows) involved in the activities of a provider of

outsourcing undertakes to adhere to the full extent of the arrangement between

person and the provider of outsourcing.



For this purpose, are option and chaining conditions of outsourcing

clearly regulated in the arrangement between the person and the

outsourcing provider.



Arrangement of risk management



9. Risk management of outsourcing is part of operational risk management,

unless there is a risk of outsourcing a mandatory person internally defined and

managed as a discrete risk category.



10. the outsourcing of risk management also includes risk concentration at

outsourcing, in particular the risk of concentration in terms of utilization rate

a particular outsourcing provider, and the concentration of risks of outsourcing,

including the issue of such risk in the context of the consolidated Group.



Maintaining an adequate level of quality management and control system

mandatory of the person



11. the person shall ensure that Mandatory use of outsourcing the quality level

management and control system which corresponds to the situation where the mandatory

person concernedpursued an activity itself.



12. If a legal provision lays down the requirements on competence,

experience or credibility of persons for the performance of certain activities required

the person, the person required to ensure that other natural or legal person,

that effectively performs this activity, meets the requirements in

the case of the use of outsourcing.



13. If the legislation lays down requirements on remuneration for the performance of

certain activities required the person takes into account the required person in the use of

the outsourcing of these requirements in an appropriate manner in the approach to the remuneration for the

the activity, defined by the arrangement between the person and the

outsourcing provider (points 37 and 38), including access to

other remuneration of other persons in the event of chaining of outsourcing (point 8).



14. Mandatory person shall retain sufficient expertise and permissions

to ensure her control over the activities and management of the outsourcovanou

the risks of outsourcing in sufficient scope and quality.
The maintenance responsibilities of the institutions and the persons who lead the business required

the person



15. a person Required to ensure that the scope of its authority and the head of the

their members are not distorted as a result of an inadequate range, or

the use of outsourcing.



16. It is particularly inadmissible that, in the context of outsourcing was to transfer

the basic management and control responsibilities of the head of authority mandatory

persons and their members on the outsourcing provider, in particular

the responsibility for good governance, management and control of overall performance

activities mandatory, including compliance with the prudent person rule

the business.



The maintenance liability of a person for the performance of required activities, including

the provided services and products



17. The use of outsourcing is required, the person shall not relieve of his duties

and accountability to the competent supervisory authorities and other persons for the

activities as follows, in particular, shall exercise the duties



and in the performance of their) activities, including meetings with clients in the manner

neohrožujícím proper, honest and professional obligations and

to harm the interests of the clients and



(b)) in the protection of personal data ^ 16), and other information subject to the

protection, in particular business secrets, banking secrecy or

data protection for member savings and cooperative úvěrním

^ 17).



18. The responsibility of the person required for compliance with the requirements on the performance of the activities of the

in the use of outsourcing is maintained, even when the other fact,

in particular, the contract with the client, the contract with the provider of outsourcing, or

the right of the State headquarters of the outsourcing provider provides otherwise.



19. The responsibility of the person required for damages caused to the client is maintained

even when the use of outsourcing and the person shall take all appropriate

measures to prevent damage when deficiencies or the use of outsourcing

as a result of violation of its obligations, in particular to avoid

unauthorized publication or exploitation of any information relating

client and subject to protection that are provider available

outsourcing.



20. The responsibility of the outsourcing provider to the person is not required

provisions laid down in points 17 to 19.



Maintaining continuous compliance with the terms of the authorisation to conduct business



21. The mandatory person meets consistently, even if the use of outsourcing

all the relevant terms and conditions, which shall be subject to the granting of an authorisation to

the performance of the activities required of the person.



22. The mandatory person cannot, in particular, benefit from outsourcing in such a way,

that would be the majority of the activities provided by the provider of outsourcing and

required the person would become an empty mailbox.



Conservation options to exercise control and supervision of the use of independent

outsourcing



23. The use of the outsourcing must not restrict the ability of persons and required

authorities and the workers in the management and control features to control and

control the activities required of the person as a whole and in the use of

outsourcing.



24. The mandatory person shall ensure that the use of outsourcing does not constitute

reduce the possibility of the Czech National Bank to exercise supervision over it, including the

ensure synergy with the Czech national outsourcing provider

the Bank, in the exercise of supervision, including the possibility of eventual control and review

facts, data, and other information subject to supervision by the

outsourcing provider, even if the outsourcing provider based in

abroad.



The principles and practices of risk management in the implementation of outsourcing



Risk management framework in the implementation of outsourcing



25. The mandatory person takes and maintains a comprehensive management and control system

the preparation and use of outsourcing in accordance with an approved strategy for the

the use of outsourcing. To this end, it will establish and maintain policies and

procedures for the management, monitoring and assessment of the preparation and use of

outsourcing as a whole and its individual cases, which, in particular,

ensure the proper and prudent use of outsourcing and compliance with

approved strategies required the person.



26. Before a person makes use of outsourcing required

sufficient analysis of the risks associated with that intention, including the assessment of

possible adverse impacts on the management and control of the activity and function of

mandatory of the person, and the specific methods and procedures, which will be as follows

recognized the risks managed, which subsequently takes and maintains.



27. Mandatory person assesses the risks of outsourcing, also taking into account the

potential conflicts of interest, including the potential conflict of interest, if any, between the

required by the person and the provider of outsourcing operation.



28. In the framework of the internal control system required the person shall ensure that the

continuously carried out the monitoring and evaluation of individual cases

outsourcing, especially in terms of the monitoring of compliance with the laws

regulations and compliance with the agreed level and quality of the performed as follows

activities and also in terms of risk management and safety and reliability

transmission, processing and information security, in particular data subject to

the protection.



29. The subject of the assessment of the use of outsourcing, which regularly

performs the required person, is in particular whether



and is permanently carried out activity) in accordance with the relevant laws

legislation and the Treaty



(b)) is a provider of outsourcing continues to be a trusted and legally, financially,

professionally and technically competent to ensure that the activities



(c) security of information subject to protection) ensures permanently and

sufficient and



(d) the outsourcing provider regularly examines) functionality and

the adequacy of their internal control systems and risk management including

management of the risk of the occurrence of incidents which might have a significant

a negative effect on the proper performance of the activities.



30. The use of outsourcing, the person shall be assessed by a person required

or persons with adequate knowledge and experience in a given area or

areas and in sufficient scale.



31. The mandatory use of the person before you start outsourcing provides, how

often and by whom will be checked and assessed, including any control

the quality of the operation and effectiveness of the internal control and risk management directly

the outsourcing provider.



32. In the case of a finding of a significant deficiency in the outsourcing shall ensure

mandatory person without undue delay, in the case of other

shortcomings of the axle shall ensure that within a reasonable time.



Potential outsourcing provider



33. Required a person who intends to make use of outsourcing, shall, before

conclusion of the contract a detailed assessment of the potential provider

outsourcing.



34. the outsourcing Provider meets the following criteria in particular:



and business permits or) has different permissions to the performance of the

activities,



(b)) has the prerequisites for the proper implementation of relevant activities, in particular

the credibility, competence and experience for the

activities and is financially stable, and



(c)) shall Institute and maintain at least such internal management and control policies and

the procedures, which provide in comparison with the similar rules required a person

at least a comparable level of quality and reliability.



35. the outsourcing Provider complies with the criteria referred to in section 34 for the whole

When engaged in the performance of the activities required of the person. Required a person

the implementation of these and other specified conditions, including the conditions for the

any use of the chaining of outsourcing, and is able to, in the

a period appropriate to the nature, scale and complexity of the activities to respond to the

situations that endanger or precluded by its compliance with

the conditions of the provider of outsourcing.



36. At the latest before the beginning of the use of the outsourcing of certain activities

required the person shall ensure that the provider takes outsourcing and maintains

for activities that are related to the activities of the person, at least for the compulsory

such a risk management system and internal control system, which would use the

mandatory person in accordance with its principles for the management and control

the system should ensure the activity itself.



The arrangement between the person and the provider of outsourcing



37. a person Required to ensure that in the contract with the provider of outsourcing

It is clearly and definitely defined the agreed way and results

application outsourcing, in particular



and activities carried out through the specification), outsourcing,

in particular, the subject and scope of the activities as follows,



(b) a clear definition of the roles) and relations between the person

and the provider of outsourcing,



(c) the detailed arrangements required) the quantitative and qualitative levels

activities carried out through outsourcing and conditions, on the basis of

that will be the provider of outsourcing this activity to perform, including

the conditions of the price,



(d) security of information subject to) the terms of protection, in particular if

outsourcing provider comes into contact with confidential or other

protected information about the required person or its clients, including

unambiguous obligation to properly dispose of the outsourcing provider with

the information subject to protection,



(e) the determination of the obligations of the outsourcing provider) to provide the required

the person of all of the relevant data and other information related to the activities

carried out on the basis of the Treaty and shall promptly notify the liable person

under threat of impending or the proper performance of the activities,



(f)) method of monitoring and checking the fulfilment of contractual arrangements,
including the options required the person to perform such monitoring and

the control activities in the headquarters of the outsourcing provider, or other

places of performance activities, even if they are abroad,



g) corrective measures and appropriate penalties for breach of, or failure to comply with

terms and conditions, or other failure of the provider,



(h)) to termination of the contract, including the rights required a person to withdraw from the

the contract with immediate effect and ensure the possibility of including contractual

convert the performance of activities to another person (third-party

outsourcing) or back to the required person and including the situation when the notice of termination

the contract will be required by a person on the basis of the decision made to Czech

National Bank on the imposition of corrective measures,



I) specifications of the conditions for the possibility of chaining of outsourcing,



j) Edit to the Czech National Bank supervision. The Treaty clearly

defines the obligation to make available to the outsourcing provider and provide

all the information about the outsourcing and provides the possibility of Czech

the National Bank to exercise supervision over the required person, even if the registered office of the

outsourcing provider or other place or places of performance

of activities abroad; and



to the choice of law in the case), that is the seat of the outsourcing provider, or

another place or places of performance of the relevant activities in a non-member

State, so as to not limit the feasibility or enforceability of

the provisions of the contract between the person and the provider of outsourcing.



38. in order to ensure the proper administrative procedures and management

with due managerial diligence applies the principle to achieve the required person

the use of higher efficiency of outsourcing the activity in the performance

compared to the situation, if the activity performed alone, in particular

the rule of proportionality above the price at which the outsourcing provider

the performance of the activity required the person provides. Level of performance

outsourcing provider required the person usually assessed on the basis of the

a combination of quantitative and qualitative indicators and characteristics

providing an undistorted and sufficient picture of the quantity and quality of

the activities carried out by the provider of outsourcing. The contract between

person and the provider of outsourcing may not be concluded at

advantageous or negotiated the conditions for compulsory person, particularly

any obligation required a person to economically unjustified transactions or

for the performance, which is not proportional to the consideration provided.



Contingency plans for outsourcing



39. Before the beginning of mandatory use of the outsourcing person establishes

the contingency plan. The contingency plan shall identify clearly the procedure for

in case the outsourcing provider is not able to or willing to properly

to carry out the activity in question or the other unwanted development

in the use of outsourcing.



40. the content and level of details of the contingency plan shall take into account the importance and

the priority of the recovery and continuity of the activities carried out by

outsourcing in terms of the overall priorities of the mandatory person in ensuring

recovery and continuity of its activities in case of emergency.



41. the contingency plan shall include the method of response required the person to

unilateral termination of the outsourcing and the case, when it is their

the requirement of supervision by the Czech National Bank within the framework of the measures imposed

The Czech National Bank for the shortcomings identified in the performance

supervision of compliance with the obligations laid down by the legislation of

required by the person.



42. The mandatory person prepares, examines, evaluates and, where appropriate,

updated contingency plans regularly and in particular in the follow-up to the

significant changes in the operational conditions of use and other relevant

outsourcing.



43. a person Required to ensure that



and) are set out internal procedures for the preparation, approval, testing

and update contingency plans,



(b) the screening of their contingency plans) testing is performed

regularly and after their major editing, or if you need

Re testing stems from the results of the tests,



(c)) the test results of the contingency plans are documented,



(d)) is carried out checks on compliance with the procedures for contingency planning

and check the testing of these plans and the



(e)) are taken remedial measures to correct the shortcomings noted

in the area of contingency planning and removal is monitored and

evaluated.



44. For the purposes of the effective restriction of financial or other loss of mandatory

person as a result of the incident, including the loss of data or other

information relevant to the required person required the person evaluates and

contingency plan shall take into account the possible consequences of failure or failure of

the parties to a particular outsourcing provider and against this possibility and

the potential effects of the incident are adequately ensure in

the relevant contract with the provider of outsourcing [37 (b), in particular point.

(e)), g) and (h))].



Evaluation of the use and effectiveness of the functional outsourcing



45. The mandatory person in the appropriate time period and always when a significant change

the conditions shall be assessed:



and whether they are approved) the internal policies and procedures required for

the use of outsourcing continue to be complied with and the current and sufficient



(b)) whether internal control system required the person ensures the early detection

deficiencies in the use of outsourcing and the adoption of remedial measures,



(c)) access required persons to the use of outsourcing, in that always total

the strategy and the main objectives and principles for the use of outsourcing,



(d)) total benefits and any significant negative effects or other

adverse fact arising for the mandatory person in connection with the

the use of outsourcing and



(e)) the overall functionality and effectiveness of the use of outsourcing in terms of

mandatory of the person.



46. any corrective measures required the person accepts, without undue

delay and then verify their effectiveness.



The principles and practices of risk management in selected cases of outsourcing



Outsourcing provider with offices abroad



47. As regards the outsourcing provider, which is based in foreign countries,

in particular, other than a Member State, the person also required on

possible risks resulting from this fact, in particular, on the assessment of the

the capabilities of outsourcing provider adequately demonstrated, and even Czech

the National Bank that administers risk management and internal control are

in accordance with the prudential requirements set out mandatory.



48. The mandatory person performs adequate analysis of the environment in the country of the seat of

outsourcing provider in order to recognize and then effectively

to avoid possible negative effects in the performance or enforcement of the agreed

the conditions of provision of outsourcing outsourcing provider, which

is located abroad, or from the intention to waive, if risks with him

associated was required by the person assessed as inadequate.



The provider of outsourcing, which is not supervised



49. a person Required to adequately take into account the fact that the use of other

the person above which is not supervised, as the outsourcing provider

may be mandatory for the person associated with the additional or specific

risks or risk factors and properly against them.



50. The mandatory person in the risk management of outsourcing may reasonably

take into account, if it is above the outsourcing provider, supervised,

in particular, if the provider of outsourcing resulting from legislation

certain obligations of prudential nature, in particular management requirements

the risks and requirements on the credibility, competence and experience

persons, through which it carries out its outsourcing provider

activity, and if required, the person shall ensure by appropriate means that

outsourcing provider progresses steadily in accordance with the following

the obligations.



The use of outsourcing within the Group



51. If the outsourcing provider is the person with whom the person is mandatory

in close connection, you can apply a specific modification of the conditions of use of the

of outsourcing, including the sharing of information and other relevant outputs and

modification of the contingency planning (point 39 to 44), unless this would

a significant adverse effect on the effectiveness of the risk management of outsourcing

required by the person.



52. The mandatory person takes and maintains control mechanisms, which will ensure

that close links will not affect the proper and prudent exercise of activity compulsory

of the person. Mandatory use of the person within the group, effectively outsurcingu

manage the risks. The use of outsourcing in the context of group responsibility

mandatory of the person is not affected.



Annex 8



For a more detailed definition of certain requirements for internal audit



General requirements



1. For the performance of the internal audit, the required person has or acquires such

capacities that are necessary for the fulfilment of the requirements laid down.



2. the person carrying out the internal audit (hereinafter referred to as "the internal auditor")

in carrying out its tasks, carries out an independent and objective assurance and

where appropriate, the consultancy, which



and) focuses on adding value and improving internal processes and



(b)) brings the systematic, disciplined approach to evaluate and improve

the functionality and effectiveness of risk management, control processes and procedures

the Administration and management of the company.
3. internal auditors provide its outputs to the competent authorities, committees and

workers in a timely manner, and these outputs are up-to-date, reliable and comprehensive.



4. In the implementation of their activities are internal auditors access to

all relevant persons, premises, equipment, information and documents

mandatory of the person.



5. the person in command of the internal audit function has the opportunity to participate in the

a meeting of all the organs and committees of the mandatory of the person. In the cases of

Special considerations may be individually restricted this right reason

by decision of the head of the authority.



6. the person in command of the internal audit function is subject to such

organizational level in the required person, which will allow the fulfilment of the requirements of the

the performance of the internal audit.



7. If in exceptional cases involved in the provision of

assurances about the activities of a natural person who carries out this activity or

on the download participated in less than 12 months ago, is this

indicated and justified in the report on internal audit

and at the same time ensure maximum objectivity of this report.



8. In the event of exercise of the consultation activity is to ensure that it is not

limited the ability of the internal auditor's report to the independent and objective

the assurance of functionality and effectiveness of the management and control system

or other assurance activities for the required person; in the event of performance

the consultation activities of the internal auditor provides impartial consultation in

the issues of implementation and maintenance of the management and control system and its

components, in particular in the issues of implementation and maintenance of functional and

efficient systems and mechanisms of risk management and control mechanisms

and sound administrative and accounting procedures, including the reliability and

the integrity of the financial and other information.



The status of the internal audit



9. Mandatory person shall define the status of the internal audit, which modifies, in particular



and the scope and powers of the Department) or legal or physical person

executing the required person or for the required person internal audit,



(b)), the subject and the target range performance of the internal audit,



(c) the nature and possible ujišťovacích) consulting activities carried out by

the internal auditors and the outputs from these activities,



(d)) the internal audit planning process,



(e) the method of communicating results) internal audit including proposals for corrective

the measures,



(f) method of settlement observations on) the conclusions of the internal audit and

dispute resolution and



g) way of corrective measures on the basis of the findings of the internal

the audit.



Risk analysis and planning of internal audit



10. Planning and scheduling capabilities of Internal Auditors is

based on risk analysis.



11. The risk analysis evaluates the degree of risk associated with each of the activities

required so that persons taking into account the probability of failure of the management and

control system in each of the areas and the degree of possible loss of

This failure. The output from the risk analysis carried out presents

the person in the management of internal audit functions managing authority, or

the audit committee, for consideration. Different views of the management of the authority or

to the audit Committee on the output from the risk analysis are documented.



12. on the basis of a risk analysis compiles a person in leadership functions of the internal

the design of the strategic audit and periodic internal audit plan. When

the preparation of the plan requires and evaluates the suggestions by the head of the authority,

where appropriate, the audit committee, the persons in the top leadership, takes into account the

the requirements of relevant legislation on the examination of the internal audit and

take account of the other major relevant requirements, information and

the facts, in particular to the newly introduced by the activities required of the person and to the

the content of the messages of the supervisory authorities. At the same time takes account of the activities of the internal

the audit of the other persons who are a member of the same consolidation unit, if

It is relevant, and the auditor's report.



13. the activities of the internal audit Plans are before the approval of the design

the Authority submitted for consideration to the inspection authority or of the Committee for

audit. The reasons for the changes in internal audit plans are documented.



14. the internal audit strategic plan is drawn up for a period of three to

of five years. Strategic plan ensures that the internal audit activity is

effectively allocated for the relevant period (three to five years), are

take account of the strategic decisions of the head of authority mandatory of the person and

risk of individual activities and is determined by the estimated period

authentication. The strategic plan is carried out in following the risk analysis

where appropriate, updated.



15. Periodic internal audit plan is established for a period of one

year, or a shorter time period. A recurring plan specifies a target, subject, and

the term of the planned internal audits. Recurring programs on rozvrhuje

the capacity of the planned internal audits, internal audits, an extraordinary

training and other activities.



Performance information and internal audit



16. the person in command of the internal audit function to ensure that the performance of the internal

the audit is effectively coordinated, if relevant, with the internal

Auditors of other persons, that are a member of the same consolidated Group.

At the same time in the coordination of activities takes into account the specified authentication outside the plan

the head of the authority and authentication as required by the competent supervisory authority.



17. For each individual audit action is conducted an audit file.

The audit is conducted in such a way that it is fully

rekonstruovatelný procedure carried out by the audit. Audit files are

reviewed by the person in the management or internal audit functions authorised

the internal auditor.



18. The internal audit shall report. Report

includes in particular the objective, subject, scope, carried out by the internal audit and

the findings together with the design of remedial measures. The report contains the views

the internal auditor's report on the peace of the risks contained in our audit activities, including

residual (open) the risks in the area and its acceptability.

The report is accessible to the head of the institution to the audit committee and

the competent control persons, including persons in the top leadership.



19. the person in command of the internal audit function to ensure the creation and

the maintenance of a system for monitoring the corrective measures imposed on the basis of the

the findings of internal audit, including monitoring, whether these measures are

effectively implemented. In the event that the person in the management function of the internal

the audit concludes that the degree of residual risk in the area in

as a result of the failure to introduce effective remedial measures for compulsory per person

unacceptable, discuss this fact with the managing authority. If according to the

judgement of the persons responsible for the management of the internal audit function is not a question

residual risk in the region resolved to forward the information

the inspection authority, where appropriate, the audit committee.



20. the person in command of the internal audit function shall regularly inform about the

the findings of the internal audit on the proposals of the corrective measures and the

the removal of the identified shortcomings, the head of the authority, where appropriate, the Committee for

audit.



21. the person in command of the internal audit function shall be presented at least once

a year to the head of the authority, where appropriate, the audit committee, to discuss

Summary evaluation of the functionality and effectiveness of the management and control

the system required a person. This evaluation shall cover in particular the reliability and

the integrity of the financial and other information, functionality and effectiveness of the

processes, protection of assets and compliance with laws and internal regulations.



22. the person in command of the processes internal audit functions regularly,

at least once a year, a report on the activities of the internal audit and

submit it to the head of the authority, where appropriate, the audit committee, for consideration.



23. the person in command of the internal audit function shall inform the managing authority,

the inspection authority or, where appropriate, the audit committee, on possible environmental impacts in

due to the limited resources of any internal audit.



Security and improving the quality of the internal audit



24. The mandatory person shall ensure that the personnel and other security performance

internal audit so as to continuously provide independent and objective

the assurance of the activities required of a person, in particular about the functionality and

the effectiveness of the management and control system and its components,

the corresponding quality and with the appropriate added value. The use of

outsourcing in ensuring the performance of the internal audit function is not

without prejudice to the obligation.



25. the person in command of the internal audit function shall draw up and regularly

program updates for security and improving the quality of the internal

the audit, which will include all aspects of the internal audit and continuously

monitor the effectiveness of this programme and the functionality, unless the

the inspection authority or the audit committee.



Annex 9



For a more detailed definition of the requirements to report on the verification of the management and

control system auditor



The structure of the report



1. Chapter 1: brief description of authenticated areas.



This chapter contains:



and) organizational chart with more detailed description of the organizational arrangement in

the components of the management and control system,



(b) a concise definition of the scope of and) the powers of the relevant authorities of the mandatory

persons, departments and committees,



(c)) description approval and decision-making processes within each

authenticated areas



(d)) description of methods and techniques used in each of the areas,
for example, the methods used for risk management,



(e)) the structure of the limits in a given area, if it is for a region

relevant,



(f) a description of the structure) used information and communication systems.



2. Chapter 2: identification of the established internal control mechanisms and

evaluation of the effectiveness of these arrangements and, in particular,

by comparing with the accepted standards.



This chapter contains an overview of all the established internal mechanisms

checks. In the event that the deficiencies were identified, these

the facts listed in this chapter, are each in more detail

the shortcomings of the analysed in Chapter 3.



3. Chapter 3: specification of missing internal control mechanisms and

the evaluation of the severity of individual shortcomings.



In this chapter are described in detail the deficiencies found during the

authentication system auditor. Part of the assessment of the seriousness of the

the shortcomings according to the scale:



and the) lack of with a very high degree of severity-the lack of which may

affect the continued existence of the required person or which significantly threatens the

the financial situation and the capital required of a person. The lack of crucial influence on

the functionality and efficiency of the processes required of the person;



(b)) the lack of with a high degree of seriousness-deficiency can endanger

the financial situation and lack of capital required persons has an effect on

the functionality and efficiency of more incremental processes required the person, it is

about the lack of certain essential system areas;



(c) the mean rate of) lack of seriousness-the lack of it does not affect

the financial situation and the capital required of a person, it is a partial lack of

system character or significant lack of non-system

the character;



d) deficiency with low levels of severity-the lack of it does not affect

the financial situation and the capital required of a person, this is a less significant

the lack of the Nonsystem character.



Furthermore, it is part of the identification of missing internal control mechanisms.

Also included is a description of what kind of impact these facts accounted and

represent for the functionality and effectiveness of the management and control system

or its components.



4. Chapter 4: overall assessment of the functionality and effectiveness of the management and

control system in a given area. In this chapter it is evaluated

the functionality and effectiveness of the management and control system in a given area

as a whole.



The format of the messages and other essentials



5. the report of the verification system is submitted to the Czech National Bank in

paper and electronic format, in the format *.doc *.xls/docx/xlsx, or

*.mdb.



6. the report of the verification system is equipped with a business name and number

the auditor's certificate of registration, stating the name and last name of the Auditor,

the numbers of the certificate of registration and the date of the copy of the message. The report in the paper

In addition, the form is equipped with the original signature of the auditor.



Annex 10



Content data on mandatory person, the composition of the shareholders or members, structure

the consolidated Group, which is part of the activities and the financial situation of the



1. the information about the required person



and) business name, legal form, address of the registered office and identification number

a person (hereinafter referred to as "identification number") required the person according to the entry in the

commercial register,



(b)) date of registration in the commercial register, including the date of registration of the last

the changes, stating the purpose of the most recent changes



(c) the amount of registered capital) in the commercial register,



(d)), the amount of the paid-up capital



(e)), the form, form of the species and the number of issued shares, indicating their

nominal value, if required, the person is a joint-stock company,



f) data on the acquisition of own shares and serve the leaves and other

capital instruments, if required, the person is a joint-stock company,



g) data on the increase of the capital, where the capital was

increased since the last publication of the:



1. the method and scope of the capital increase,



2. are the new shares to be issued, the person will publish the required type and number of

issued shares, stating the nominal value, a range of repayment of the newly

of the shares subscribed and the deadline for the repayment of the newly subscribed shares,



3. when the capital increase from own resources required person

will publish the amount of the capital increases, the own

the source, from which the capital increases. A person who is required

joint-stock company, indicating whether it increases the nominal value

and if the stock increases, the amount of the increases;



h) organisational structure required the person specifying the number of business locations

and the number of employees (number)



I) data on members of the head of the authority and of the persons in the top leadership of the

mandatory person in this range:



1. name and surname, including titles,



2. the designation of the authority and functions performed or the designation of the positions in the

top executives, and the date from which the person performs the appropriate function or

takes the given position,



3. the experience and qualifications for the performance of the

functions or positions held,



4. membership in the bodies of other legal persons, including the

person, authority, and functions



5. the aggregate amount of the credits granted to the members of the head of the person liable

authority and the persons in the top leadership of the mandatory of the person,



6. the aggregate amount of guarantees issued by the person responsible for the compulsory members of the head

authority and the person in the top leadership of the mandatory of the person.



2. information on the composition of the shareholders or members of the mandatory of the person



Information about the associates or members of the mandatory of the person with a qualifying holding

the required person that



and associates or members) who are legal persons, required

a person publishes a business name, legal form, address of the registered office,

the identification number, if assigned, sectoral classification

economic activities and the amount of the share of voting rights in

as a percentage,



(b)) of associates or members who are natural persons required

the person shall publish the name and surname and the amount of the share of voting rights

in percentage terms.



3. the data on the structure of the consolidated Group, which is required by the person

part of the



and) information about people that are in relation to the mandatory person

the controlling entities, where appropriate, the majority partner, which includes



1. business name, legal form, address, identification number,

If allocated, and the sectoral classification of economic activities

such persons; in the case of a natural person, the name and surname;



2. direct or indirect share of the capital required of the person in

as a percentage,



3. direct or indirect proportion of voting rights required the person in

as a percentage,



4. Another method of control,



5. the aggregate amount of debt instruments, which has a mandatory person in assets

and which are the debt of such persons, a summary of debt required a person

against such persons, broken down by individuals and in a breakdown on debt securities

Securities and other debt instruments,



6. Summary of capital instruments, which has a mandatory person in

assets and equity are those persons, and a summary of

persons from these mandatory debt capital instruments, broken down by

persons,



7. a summary of the required person issued the guarantees for such persons and

a summary of the required person received guarantees from such persons, in

the breakdown by persons.



(b)), information about the persons who are in relation to the mandatory person controlled

persons, or in which the person is required, the majority partner,

includes



1. business name, legal form, address, identification number,

If allocated, and the sectoral classification of economic activities

such persons,



2. direct or indirect share of mandatory person in the capital in the

as a percentage,



3. direct or indirect share of compulsory voting in person

as a percentage,



4. Another method of control,



5. the aggregate amount of debt instruments, which has a mandatory person in assets

and which are the debt of such persons, a summary of debt required a person

against such persons, broken down by individuals and in a breakdown on debt securities

Securities and other debt instruments,



6. Summary of capital instruments, which has a mandatory person in

assets and equity are those persons, a summary of

persons from these mandatory debt capital instruments, broken down by

persons,



7. a summary of the required person issued the guarantees for such persons and

a summary of the required person received guarantees from such persons, in

the breakdown by persons;



(c)) a graphical representation of the consolidated Group, whose member is required

person, in terms of the ownership arrangement of designating the persons that are

included in the consolidation, the prudential and the reason for non-inclusion

in the prudential case, the consolidation of other persons



d) graphical representation of the consolidated Group, whose member is required

person, in terms of procedure, with an indication of the persons that are included in the

Prudential consolidation, and indicating the reason for non-inclusion in the

Prudential consolidation with other persons.



4. information on the activities required of the person



and) business (activity) registered in the commercial register,



(b) an overview of the activities actually carried out) and



(c) an overview of the activities) the exercise or grant was the Czech

National Bank Limited or excluded.



5. information on the financial situation of the person required



and the quarterly balance sheet required) of the person,



b) quarterly profit and loss statement required of the person,
(c) compulsory information) the person is a bank or savings and úvěrním

the cooperative, on the claims of financial activities without fail and in

the failure, in the breakdown of receivables for credit institutions and other

persons other than credit institutions and further broken down by individual

categories and subcategories of receivables from financial activities, with an indication of

book value without adjustments, adjustments to individual

receivables and receivables portfolios together with the accumulated losses of the

the fair value,



(d) information required) the person is a bank or savings and úvěrním

a cooperative, on claims without damaging and deterioration, with

specifying the value before depreciation, adjustments and accumulated

losses from the valuation of fair value and the book value of the,



(e) the total amount of claims) required of a person who is a bank or

savings and cooperative úvěrním, from financial activities, which have been

during the accounting period the sum of the balances of the accounts (restructuring

claims to the reporting date, and the claims for which it was

the accounting period of the restructuring); receivables are placed

without the adjustments,



(f)) real and nominal values of the derivatives



1. Summary for derivatives concluded for the purpose of ensuring and collectively for

the negotiated derivatives for trading or speculation,



2. Summary for derivatives, which required a person applies hedge

accounting for derivatives and other



g) capital ratios



1. capital ratio for the equity tier 1,



2. capital ratio of tier 1 capital,



3. capital ratio for the total capital,



h) ratios required of a person who is a bank or savings and

úvěrním cooperative



1. return on average assets (ROAA),



2. the return on average equity (ROAE) tier 1,



3. assets per employee,



4. the administrative costs per employee,



5. profit or loss after tax per employee,



I) ratios required of a person who is a dealer in securities

papers



1. debt and total debt (without the property/assets without property

clients),



2. debt II (total debt without the assets of clients/shareholders ' equity),



3. return on average assets (ROAA, assets, the assets of clients),



4. the return on average equity (ROAE) tier 1,



5. return on sales (profit after taxation/revenue from investment services),



6. the administrative costs per worker.



Annex 11



Content data on related relations between members of the consolidated Group

and the management and control system



1. Data on persons that are in relation to the mandatory person in a narrow

link



and) business name, legal form, address, identification number,

If allocated, and the sectoral classification of economic activities,



(b)) a brief summary of the main activities and



(c) the classification of close links), expressed in letters and), (b)) or (c)) in accordance with

Article 4, paragraph 4. 1, point 38 of the regulation.



2. information on the management and control system



and a brief summary of the arrangement), the principles and procedures for the Administration and management

the company,



(b)) a brief summary of the arrangement, the principles and practices of risk management system,



(c)) a brief summary of the arrangement, the principles and procedures of the system of internal

checks,



(d)), a brief summary of approach to ensuring trust, professional

competence and experience of the members of the head of the authority, the persons in the high

leadership and people in key positions and the



e) brief summary of the approach to the verification and evaluation of the effectiveness,

consistency and adequacy of management and control system.



3. Details of the committees established by the liable person



and the designation of the Committee)



(b)) a brief summary of the scope of the powers, how the negotiations and decision-making

and the inclusion of the Committee to the organizational arrangements and information flows

mandatory of the person and



(c)) data on members of the various committees in this range:



1. name and surname, including titles,



2. the Committee's functions, the date when the person the appropriate member of the

the Committee carries out,



3. the experience and qualifications for the performance of functions

Member of the Committee and



4. membership in the institutions required persons or other legal persons.



Annex 12



Content data on the types and range of investment services provided



1. the investment services provided by the dealer with the securities other than

pursuant to section 8a of the paragraph. 4 or 7 of the Act on business on the capital market



and) the volume of securities transactions for clients



1. trades for clients in the context of the management of the assets



the AA. investment securities-shares and similar securities



AB investment securities-bonds and similar securities



AC. securities investment-other



ad. collective investment securities



AE. money market instruments



2. other shops for clients



the AA. investment securities-shares and similar securities



AB investment securities-bonds and similar securities



AC. securities investment-other



ad. collective investment securities



AE. money market instruments



(b)) the volume of trades in securities on own account



1. investment securities-shares and similar securities



2. investment securities-bonds and similar securities



3. investment securities-other



4. collective investment securities



5. money market instruments



(c)) the volume of trades for clients



1. trades for clients in the context of the management of the assets



CA. equity derivatives



CB. interest rate derivatives



CC. currency derivatives



CDs. commodity derivatives



the CE marking. credit derivatives



CF. other derivatives



2. other shops for clients



CA. equity derivatives



CB. interest rate derivatives



CC. currency derivatives



CDs. commodity derivatives



the CE marking. credit derivatives



CF. other derivatives



(d)) the volume of trades on its own account



1. equity derivatives



2. interest derivatives



3. currency derivatives



4. commodity derivatives



5. credit derivatives



6. other derivatives



2. the investment services provided by the securities dealer under section 8a

paragraph. 4 and 7 of the law on capital market



and) the number of contracts for the provision of investment services



1. the reception and transmission of orders



2. the provision of investment advice



3. asset management



(b) the number and volume of received) instructions



1. for the purchase of investment securities



2. to the sale of investment securities



3. to purchase securities for collective investment



4. available for sale securities, collective investment



Annex 13



The content of the information published by the branch of the Bank from a Member State other than the



1. data on foreign bank from a Member State other than the



and) business name and address of the registered office of a foreign bank from other than

a Member State which is the founder of the branch of the Bank from other than

the Member State,



(b) the identity and address of the registered office) the authority which exercises supervision over foreign

Bank of a Member State other than the



(c)) or with a qualified fellow Member participation in

Foreign Bank from a Member State other than that of the companions

or members who are



1. legal persons shall disclose to the business name, address of the registered office,

the identification number, if allocated, the sectoral classification

economic activities and the amount of the capital share in percentage and the

voting rights percentage



2. natural persons, publish the name and surname and the amount of the share of the

as a percentage of capital and of voting rights percentage



(d)) business (activity) foreign bank other than a member of

the State,



(e) an overview of the activities of the foreign bank) from other than the Member State of

actually carried out,



(f) an overview of the activities of foreign banks) of the Member State, other than the

the exercise or the provision of the competent supervisory authority

restricted or excluded,



g) annual report of the foreign banks from other than a Member State, and

the financial statements of the foreign bank other than a Member State, unless

part of the annual report, at least for the last accounting period, or

the Internet address at which such information is available.



2. information on the branch of the Bank from a Member State other than the



and the address of the registered office) mark, and the identification number of the Bank branch from another

than the Member State of registration in the commercial register,



(b)) date of registration in the commercial register, including the date of registration of the last

the changes, stating the purpose of the most recent changes



(c)), business (activity) registered in the commercial register,



(d) an overview of the activities actually carried out),



(e) overview of activities) the exercise or grant was the Czech

the National Bank restricted or excluded,



(f)), the organizational structure of the Bank branch from other than the Member State with the

the number of business locations and the number of employees (number)



g) data on the head of a branch of the Bank of another Member State and other

persons in the leadership of this branch in this range:



1. name and surname, including titles,



2. function and the date from which the person performs the appropriate function,



3. the experience and qualifications for the performance of functions,



4. membership in the bodies of other legal persons,
5. the aggregate amount of loans granted to the Bank branch from other than

the Member State of the Branch Manager and persons in the leadership of this branch,



6. the aggregate amount of guarantees issued by the branch of the Bank, other than a member of

the State for the head of this branch and others in the management of the branch.



3. information on the fulfilment of the prudential rules of the Bank branch from other than

the Member State of



and) information pursuant to article 437 paragraph. 1 (a). and with the exception of full regulation)

matching items, filters, and deductions on the balance sheet within the audited

the financial statements of the Bank branch other than the Member State,



(b) the information referred to in article 438) (a). (c) to (f))) Regulation,



(c) information from the Bank branch) other than the Member State of the claims

from financial activities without fail and fail, and it's broken down on the

Receivables from credit institutions and other persons than the credit

institutions and further broken down by the various categories and

subcategories of receivables from financial activities, with an indication of the financial

values without adjustments, adjustments to individual

receivables and receivables portfolios together with the accumulated losses of the

the fair value,



d) information bank branch from other than the Member State of the claims

without the write-down, and the deterioration, indicating the values before

depreciation, value adjustments and accumulated losses from the valuation of the fair

the value and the book value of the,



(e) the total amount of receivables) a branch of the Bank from other than a Member State,

from financial activities, which was carried out during the accounting period

restructuring (the sum of the balances of the accounts receivable to the reporting date

and it claims that have been made during the accounting period

the restructuring); receivables are reported without adjustments,



(f)) real and nominal values of the derivatives



1. Summary for derivatives concluded for the purpose of ensuring and collectively for

the negotiated derivatives for trading or speculation,



2. Summary for derivatives, for which the Bank branch from another Member

the State applies hedge accounting for derivatives, and others



g) capital ratios



1. capital ratio of tier 1 capital,



2. capital ratio for the total capital,



h) ratios of the Bank branch other than the Member State of



1. return on average assets (ROAA),



2. the return on average equity (ROAE) tier 1,



3. assets per employee,



4. the administrative costs per employee,



5. profit or loss after tax per employee and



I) data on the volume of transactions carried out in the framework of the provision of

investment services in relation to individual investment tools,

If a branch of the Bank other than the Member State is entitled to

to provide investment services under the Act on business capital

the market.



Annex 14



The contents of the data verified by an auditor



1. information on the capital and capital requirements



and) pursuant to article 437 paragraph. 1 (a). and) Regulation,



(b)) (a) in accordance with article 438. (c) to (f))) Regulation.



2. Capital ratios



and the persons required)



1. capital ratio for the equity tier 1,



2. capital ratio of tier 1 capital,



3. capital ratio for the total capital.



(b)), from another bank branch than the Member State of



1. capital ratio of tier 1 capital,



2. capital ratio for the total capital.



3. the ratios



and) mandatory of the person is a bank or savings and cooperative úvěrním



1. return on average assets (ROAA),



2. the return on average equity (ROAE) tier 1,



3. assets per employee,



4. the administrative costs per employee,



5. profit or loss after tax per employee,



(b)) a person who is required by the dealer with the securities



1. debt and total debt (without the property/assets without property

clients),



2. debt II (total debt without the assets of clients/shareholders ' equity),



3. return on average assets (ROAA, assets, the assets of clients),



4. the return on average equity (ROAE) tier 1,



5. return on sales (profit after taxation/revenue from investment services),



6. the administrative costs per employee,



(c)), Bank branch from other than the Member State of



1. return on average assets (ROAA),



2. the return on average equity (ROAE) tier 1,



3. assets per employee,



4. the administrative costs per employee,



5. profit or loss after tax per employee.



1) directive of the European Parliament and of the Council of 13/36/EC of 26 April 1999. June

13 of the access to the activity of credit institutions and on the prudential supervision of the

supervision of credit institutions and investment firms, about changing

Directive 2002/87/EC and repealing directives 2006/48/EC and 2006/49/EC, in

as amended.



2) European Parliament and Council Regulation (EU) no 575/13 of 26 February.

June 2013 on prudential requirements for credit institutions and

investment firms and amending Regulation (EC) No 648/2012.



for example, section 3, paragraph 22). 3 of the law on banks, as amended by Act No. 254/2012

Coll. and Act No 227/2013, article. 103 to 105, 144, 166, 173 to 179,

185 to 191, 209, 221, 225, 243, 259, 287 to 294, 318, 320 to 322, 368,

369, 393, 434 and 435 of the European Parliament and of the Council (EU) No.

575/2013.



4) European Parliament and Council Regulation (EU) no 1093/2010 of 24 March.

November 2010 establishing a European supervisory authority (European institution

for banking), amending Decision No 716/2009/EC and repealing

Commission decision 2009/78/EC, as amended.



5) the regulation of the European Parliament and of the Council (EU) No 1095/2010 of 24 March.

November 2010 establishing a European supervisory authority (European institution

Securities and markets), amending Decision No 716/2009/EC and repealing

Commission decision 2009/77/EC, as amended.



6) the regulation of the European Parliament and of the Council (EU) no 1094/2010 of 24 March.

November 2010 establishing a European supervisory authority (European institution

for the insurance and occupational pensions), to change the

decision No 716/2009/EC and repealing Commission decision 2009/79/EC, in

as amended.



for example, article 7). 54 European Parliament and Council Regulation (EU) No.

1093/2010.



for example, section 8, paragraph 22). 2 of the law on banks.



9) Law No. 93/2009 Coll. on Auditors and amendment of certain laws (law

the Auditors Act), as amended.



for example, article 10). 368 paragraph. 1 (a). (b)) the third sentence of the regulation of the European

Parliament and of the Council (EU) no 575/2013.



for example, article 11). 100 European Parliament and Council Regulation (EU) No.

575/2013.



12) § 12 of the Act on banks.



section 8a of the Act No 87/1995 Coll., on savings and credit cooperatives and

some related measures, as amended by law no 230/2009

Coll., Act No. 285/2009 Coll., Act No. 160/2010 Coll., Act No. 41/2011

Coll., Act No. 139/2011 Coll., Act No. 420/2011 Coll., Act No. 470/2011

Coll., Act No. 37/2012 Coll., Act No. 254/2012 Coll., Act No. 227/2013

Coll., Act No. 303/2013 Coll. and Act No. 135/2014 Sb.



section 9a of the Act No. 256/2004 Coll., on business on the capital market, as amended by

Act No. 126/2008 Coll., Act No. 230/2008 Coll., Act No. 230/2009 Sb.

Act No. 160/2010 Coll., Act No. 41/2011 Coll., Act No. 188/2011 Sb.

Act No. 37/2012 Coll. and Act No. 135/2014 Sb.



13) Article. paragraph 140. 5 and 7 of the directive of the European Parliament and of the Council

13/36/EU.



14) Article. paragraph 78. 2 and 8 of the directive of the European Parliament and of the Council

13/36/EU.



for example, article 15). paragraph 111. 2 and article. 273, paragraph. 2 (a). (c)) of regulation

The European Parliament and of the Council (EU) no 575/2013.



16) Act No. 101/2000 Coll., on the protection of personal data and amendment to certain

laws, as amended.



17) Eg. section 38 of the Act the Act on banks, § 25b paragraph. 1 of the law on

savings and credit cooperatives, or § 116 of the law on business

the capital market.