Computerized systems have helped to speed payments and transfers of funds which used to take up to a week, but now have been reduced to a day for internal bank transfers and about three days for domestic transfers. In addition, transfers between the major Czech banks and large banks in the U.S. now usually take less than a week. Representative offices can offer advice and inform clients of services available through the parent bank as well as provide off-shore services out of their overseas entities. They are not authorized to perform services locally such as opening accounts or lending. Branches can handle any transaction which is authorized by the parent bank and for which they have a local license.
Subsidiaries function as an independent bank.
Czech banking law requires that all foreign banks having branches in the Czech Republic agree to take over the assets and liabilities if the branch experiences financial problems to guarantee the financial health of the branch. In addition, providing current market and investment climate information for clients has recently been targeted as a necessary part of total banking services. In the fall of 1995, Parliament approved a Foreign Exchange Act which resulted in expanded convertibility of the Czech crown. The Act provided for full current account convertibility. However, Czech legal entities do not have to obtain approval from the Czech National Bank for foreign borrowing.