The Single Resolution Board (SRB) and the Czech National Bank (CNB) announced decisions on resolution of Sberbank.
SRB decided that resolution is not necessary for the Austrian parent of Sberbank Europe AG. Insolvency procedures will be carried out according to national law while eligible deposits of up to EUR 100,000 are protected by the Austrian deposit guarantee system. Adopting the resolution decisions for Slovenian and Croatian subsidiaries of Sberbank, SRB decided to transfer all shares of the group’s Croatian subsidiary Sberbank d.d. to Hrvatska Poštanska Banka d.d. (Croatian Postbank) and all shares of the group’s Slovenian subsidiary Sberbank banka d.d. to Nova ljubljanska banka d.d. (NLB d.d.). The banks will remain open as normal, with no disruption to depositors or clients.
Earlier, on February 28, 2022, CNB had initiated steps aimed at revoking the license of Sberbank CZ, as to operate as a bank. This was due to the deteriorating liquidity situation of the bank in connection with a significant outflow of deposits after the escalation of the Russian-Ukrainian conflict and the invasion of Ukraine by Russia. For banks domiciled in the Czech Republic, CNB is the bank resolution authority. If the bank is part of an international financial group based in European Union, CNB cooperates with SRB within the resolution resolution college. SRB is the institution responsible for resolving bank crises within the Banking Union. As Sberbank CZ is part of the cross-border group Sberbank Europe AG, SRB was informed by CNB about the solution. In a separate statement, CNB assured the public that this is an isolated problem caused by external, geopolitical factors and that the business of Czech banks in Russia is very negligible and a possible failure of Russian loans and securities would have no effect on the financial situation.
Related Links (in Czech)
- SRB Decision on Sberbank Europe
- CNB Press Release on Sberbank
- Key Answers on Sberbank
- Financial Market Guarantee System in CZ
- CNB Statement
Keywords: Europe, Czech Republic, Banking, Basel, Sberbank CZ, Credit Risk, Liquidity Risk, Resolution Framework, Deposit Insurance, SRB, CNB
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