Building Savings in the Czech Republic

Buildings savings »  Building Savings in the Czech Republic

Buildling savings belongs amongst one of the youngest banking products in the Czech Republic. It was approved by the Statute on Building Savings and State Support of Building Savings # 96/1993 Sb. in 1993. Immediately after its inception, building savings was a unique option amongst other banking products.

One of its most well known attributes is its safety. Only specialized banks can conduct building savings and they are selected by specifit criteria. Currently only six banks have the license to conduct building savings and they are all members of the Association of Czech Building Savings Banks. They are only allowed to operate under strict regulations which eliminates any kind of risky financial activities. The fact that they function well is proven by the fact that during the time that building savings has been available in the Czech Republic, none of the building savings banks has run into any serious problems.

In 2003, new regulations were established in regards to building savings which significantly changed the operations of building savings. Because of the planned changes, many people sped up their decision process and signed a building savings agreement in 2003, prior to the new regulations. Because of this, 2004 was an exception in terms of new contracts signed.

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