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Czech Bank Shut Over Fraud Investigation

Why We Don’t Need QE or Euro: Czech Republic
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A bank and savings institution in the Czech Republic was closed and all deposits frozen pending a fraud investigation by the Czech central bank and ministry of finance.

In a statement published on its website on Sunday, MSD bank said all of it branches would be shut and no deposits would be accepted while two counts of credit fraud are investigated by the public prosecutor's supreme office.

A spokesperson for the Czech central bank told CNBC that MSD bank is now subject to "increased supervision".

"This particular credit union is subject to increased supervision by the CNB [the Czech central bank]. As a result, the CNB is in touch with relevant stakeholders. However, with regard to its confidentiality duty stipulated by law, the CNB is not entitled to provide more detailed information on findings obtained when supervising the activities of a specific financial market entity," the spokesperson said in an email.

CNBC also contacted MSD bank and the Czech ministry of finance for comment, but have received no reply so far.

—By CNBC's Katy Barnato

Contact Europe: Economy

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