Czech Prime Minister Petr Nečas is determined to block a proposal for EU banking supervision he believes would threaten the stability of the country’s financial system. “A total of 95 percent of the Czech banking sector is controlled by foreign banks. So we must be very cautious in regards to regulation,” Nečas said at a press conference.
“If the banking union was submitted for approval in its current form, we would undoubtedly veto it. We are one of the three OECD countries that did not have to provide banks with money. Deposits exceed the volume of loans, and we have high-quality supervision,” Necas said. It’s feared that acceptance of the banking union in its current form would allow western banks that got into trouble to siphon off funds from their Czech subsidiaries.
