Komerční banka will not charge its clients the fee for deposit increase for 2015

Press release

Prague, 14 January 2016 – The volume of deposits of KB’s major clients did not exceed the normal level before the end of the year. Active communication with clients has prevented the emergence of unusual situations. Komerční banka will not charge the fee, amounting to 0.15%, for deposits on current accounts in excess of CZK 100 million to its clients. The fee continues to be in the bank’s price list.

Before the end of last year, Komerční banka provided information about introducing a fee of 0.15% for accounts holding deposits in excess of CZK 100 million in cases where the overall increase in the deposit as at the end of 2015 exceeds the client’s long-term average level and also exceeds the balance as at the end of October. The introduction of the fee had mainly a preventive nature with a view to preventing short-term significant increases in the total deposit volume, from which the contribution paid by the bank to a newly established Resolution Fund is calculated.  

The structure of the contribution to the Resolution Fund caused concerns that some market participants might try to reduce their balance sheet, thereby triggering movements of large deposits between banks. For this reason, Komerční banka introduced the fee for unusually high increases in deposits, which was intended to prevent such attempts. “It is turning out that this measure has been successful. Clients understood our arguments and before the end of the year we therefore did not register any unusually large deposit transactions. We appreciate partnerships with our clients and therefore have decided exceptionally not to charge this fee for 2015 to clients,” said Albert Le Dirac’h, Komerční banka Chairman and CEO.