CEPS Project

Crisis Management Manual for the Czech Republic


The 2007/08 financial crisis demonstrated the significant lack of adequate tools at the Union and national levels for dealing effectively with unsound or failing institutions. Such tools are needed particularly to prevent insolvency or, when insolvency occurs, to minimise the negative effects by preserving the systemically important functions of the institution concerned. During the crisis, taxpayers’ money from public budgets was used to save troubled institutions. The target of the regulatory framework, which represents the Bank Recovery and Resolution Directive (the “BRRD”)1, is to orderly resolve banks in distress without taxpayer’s money. The BRRD was transposed by the Czech Republic through the adoption of Act No. 374/2015 Coll., on Recovery and Resolution in the Financial Market (the “Recovery and Resolution Act”), which appointed the Czech National Bank (the “CNB”) as the National Resolution Authority. There are still unresolved issues in the implementation of the BRRD in the Czech Republic. Chief among these are the balancing of public and private interests, interfering with property rights, granting of State Aid and triggers for the exercise of the available tools. Thus, the specific goals, characteristics and blending of the public and private aspects constitute a new function of the CNB without any comparable precedent in the Czech Republic. It is notable in this regard that the Recovery and Resolution Act provides specific institutional rules for the separation of functions, restrictions, notification and information duties, and competences of the CNB. Thus, the objective of the project is to to strengthen the knowledge and administrative capacity of the Czech Resolution Authority through a provision of a Crisis Management Manual – detailed guidelines for the resolution procedures.

This project was awarded under the Multiple Service Framework Contract with reopening of competition ‘Provision of Consultancy Services for the Development and Implementation of Structural Reforms in EU Member States’ (SRSS/FWC2017/002) with the European Commission, DG REFORM. The full list of CEPS’ Framework Contracts is available here.


Daniel Gros

Distinguished Fellow

+32 (0)2 229 39 38

Willem Pieter De Groen

Associate Senior Research Fellow