The CNB revokes the licence of Podnikatelská družstevní záložna

The Czech National Bank (CNB) has revoked the credit union licence of Podnikatelská družstevní záložna (PDZ) due to persistent serious shortcomings in its activities. The decision became final and conclusive on 13 January 2025. Further to this step, the CNB filed a petition to the court to dissolve and liquidate PDZ and to appoint a liquidator.

PDZ is now prohibited from accepting deposits, providing loans and carrying on any activities other than those necessary to settle its claims and debts. Similar restrictions were imposed on PDZ on 15 March 2024, when the CNB issued a preliminary measure preventing the credit union from accepting deposits and providing loans. This measure also restricted PDZ from disposing of its assets and liabilities and conducting cash operations.

The administrative proceedings to revoke PDZ’s licence began on 15 March 2024.^[1] The proceedings were initiated due to persistent serious shortcomings in PDZ’s activities, identified during an examination conducted by the CNB between August 2023 and April 2024. The examination revealed that PDZ had failed to meet the basic requirements for the sound governance of a credit union, credit risk management and operational risk management. The shortcomings consisted in a systematic breach of legal duties relating to anti-money laundering and combating the financing of terrorism.

The scale and intensity of the shortcomings identified were so serious that remedial measures and/or penalties could not have led to an improvement of the situation. For this reason, the CNB was obliged to revoke PDZ’s licence.

PDZ is a small credit union operating in the Czech market. As of 31 December 2024, it had fewer than 50 members, client deposits of almost CZK 1 million and total assets of CZK 65 million. The entire credit union sector consisted of five credit unions at the end of 2024. As of 30 September 2024, they had around 12,000 members in total, client deposits of CZK 6.8 billion and total assets of CZK 9.3 billion (according to data as of 30 November 2024). Given the size of PDZ, the revocation of its licence will have no impact on the stability of the banking sector as a whole. The banking sector is resilient and capable of absorbing even strong negative shocks due to its good capitalisation. This has been repeatedly confirmed by stress tests, which the CNB regularly conducts among institutions operating in the Czech financial market.

Jakub Holas
Director, CNB Communications Division

The CNB revokes the licence of Podnikatelská družstevní záložna

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