The fact that building societies should also be provided by bn banks in the future has provoked anger not only among building societies, but also doubters have doubts. Lawyer Jan Tryzna turned his attention to the violating state principles.
Now the Ministry of Finance wants to allow the current banks to get a new right to offer building societies, but it would not be necessary for the conditions that building societies must meet to be met. They have many limitations compared to other financial institutions.
Thus, two groups of entities would operate side by side on the building society market. Building societies, they will be subject to strict rules regarding the handling of saved funds by clients and banks for which such rules will not apply.
Adherence to the principle of equality will lead to discrimination and risks
Such a solution seems problematic from the point of view of the constitutional first, because one of the basic constitutional principles, namely the principle of equality, is evidently violated. Banks will not be limited in their investment assets, so they will be able to offer their clients a certain level of suitable conditions not building societies, their activities will remain strictly regulated. And this will discriminate against building societies.
A negative element of this risk will be the risk of depositing spocch clients with banks. These will be able to tie into intrusive but also risky investments. dn stavebn spoitelna has not gone bankrupt with us yet, while several banks have.
The problem is that the means of building society have been used for years. Before this time has elapsed, the client is not able to get his disputes back without penalties. Therefore, in the event that the bank gets into financial difficulties, it will not be able to withdraw its disputes quickly, as is the case with savings and banks, and in such a case a deposit will be made, depending on the full payment from the Fund.
In practice, clients will often not be able to distinguish between the benefits of building societies with building societies of banks, and it can also be expected that they will prefer suitable conditions at banks, nor would they be aware of the risk. This actually leads me to an outflow of clients from building societies towards banks, and thus to the number of building societies.
To be achieved, exactly what the Ministry wants to prevent finances, namely the destabilization of the entire building society sector.
Changed investment and violated the rules of equality
The question is whether the proposed law is compatible with international obligations arising from investment protection treaties and European regulations. The existing building societies had to meet the strict conditions for entering the sector, and their owners may also consider the legislative scope to change their investments. Equality will thus be equal to the rules of competition according to European law.
It is also important that the Ministry of Finance strives for change first and only in the case of building societies. This is the area of business, which the state supports as well as pension funds and insurance companies. According to the first member of Tryzna, the Ministry of Finance would have a convincing answer to this.
“If, in fact, from 2015, the new first right should allow banks to offer building societies, then the same rules should apply to banks in this area that apply to building societies,” concludes Jan Tryzna, a freshman.