Prague offers satisfactory office space and good transport facilities as a possible site for the European Banking Authority (EBA) according to an evaluation released by the European Commission.
But it says the quality of facilities for healthcare and education of the families of employees still has to be evaluated further.
Prague is seeking to be selected as the site for the European agency once it has to move from London as a result of Brexit.
Other European cities, including Vienna, Brussels, Paris, Frankfurt, Dublin, Luxembourg, and Warsaw are also seeking to host the agency. A decision is expected in November.