KB prezent. angl - Komerční banka

Price setting
ALM is in charge of external price setting in the Bank – it publishes the KB exchange rate list and sets the external interest
rates of deposit products and KB base rates, which are then used to set interest rates on loans. The external interest rates of
deposits are set by the Interest and Exchange Rate Management Committee, taking into account external developments.
The Management of Regulatory Risk
The regulatory risk derives from potential non-compliance with laws and other regulations and subsequent sanctions applied
by the regulator.
Komerční banka’s activities are subject to regulation by the Czech National Bank. The Bank’s activities as a securities trader
and depository are supervised by the Czech Securities Commission and the relevant regulations are issued by the Ministry of
Finance of the Czech Republic (MF CR). In the field of anti-money-laundering measures, Komerční banka is supervised by
a specialised department of the MF CR (the Financial Analytical Unit of the MF CR). Stock exchange operations are supervised
by the Prague Stock Exchange, a self-regulating body.
The Bank’s subsidiaries and associate companies are primarily overseen, depending on their character, by the Czech National
Bank (Všeobecná stavební spořitelna KB) or by the National Bank of Slovakia (KB Bratislava), the Czech Securities
Commission (IKS KB), the Ministry of Finance (Komerční pojišťovna), and in some instances jointly by the Czech Securities
Commission and the Ministry of Finance (Penzijní fond KB).
Banking institutions in the Czech Republic are regulated by practically the same rules as those applied in EU countries.
In 2003, some new statutory requirements were added. In January, a Czech Securities Commission decree set more detailed
conditions for the internal operations of a securities trader and more detailed rules for the dealings between the securities
trader and the client, in September a provision of the CNB was issued concerning the internal management and control
system of the Bank in the field of money laundering, and in December a CNB provision was promulgated concerning
limitations on the acquisition of significant equity in non-banking and non-financial entities.
The Bank has also implemented norms issued by regulatory bodies and adapted its own regulatory framework to the standards
of the majority owner. It has also focused on the strengthening of internal rules governing employees’ ethical behaviour.
In 2003, Komerční banka was not penalised by regulatory authorities for non-compliance with statutory requirements.