Banks: contribution to the Deposit Insurance Fund lower back to 0.1%

The contribution to the Deposit Insurance Fund for 2005 is to return to its original 0.1%. The contribution was raised to 0.2% in 2004 and was expected to remain in place for two more years. This news is positive for banks. The cutback in the contribution is expected to save between CZK 200 - 300m in annual costs for both Ceska sporitelna (a unit of Erste Bank) and for Komercni Banka. The news was generally expected as rumors of a possible cut in the contribution fee were already on the market. Source: HN