The deposit guarantee-scheme in the Czech republic: history, status quo and comparison with the european system

Czech laws on Deposit Guarantee-Schemes are characterized. It is described history of rise of the Czech Deposit Insurance Fund and dynamics of its basic characteristics. Czech deposit guarantee system is compared with the European system and with the European Directive on Deposit Guarantee-Schemes. It is calculated the effective rate of "taxation" by the compulsory payment to Czech Deposit Insurance Fund, which is (because of the very low interest rates in the Czech Republic) extremely high (about 30-40 %). Recommendations: 1) discard the audited firms from the Deposit Guarantee-Scheme and 2) decrease the amounts compulsorily paid by banks for deposits of small clients (deposits of households).