The Czech Republic has declared the “daughter” of the Russian savings bank bankrupt


Sberbank CZ is bankrupt and it is impossible to fix it with other tools in a reasonable time, the Czech regulator noted.

The Czech Central Bank has started the procedure to revoke the license of “Russian Sberbank. The liquidity of this financial institution fell sharply after the Russian attack on Ukraine. This was reported on the regulator’s website on Tuesday, February 28.

It should be noted that the bank’s liquidity deteriorated due to the massive outflow of deposits with the start of the war by Russia. The Central Bank had previously adopted an earlier measure prohibiting the bank from selling assets and liabilities, including granting new loans and opening deposits.

“The Central Bank Board has recognized that Sberbank CZ is bankrupt, and it is impossible to correct this with other tools within a reasonable time. It is also believed that the decision taken will not affect the stability of the Czech financial sector,” the message reads.

Depositors of Sberbank CZ will receive a guaranteed insurance amount of 100,000 euros per client.

The Czech Central Bank is a member of the Single Resolution Board (SRB) of the European banking regulator. Since Sberbank CZ is part of the cross-border group Sberbank Europe AG, SRB has been informed of the Czech National Bank’s decision.

At the same time, the regulator’s website notes that the branches of Sberbank Europe AG in Austria, Slovenia and Croatia “are already in decline and, most likely, will go bankrupt” due to a powerful outflow of assets.

Now these “daughters” A moratorium has been imposed on Sberbank in Europe – they cannot make any settlements, and funds on deposits can be withdrawn within the limits allowed by the national regulator.

Sberbank Europe AG is located in Austria and has branches in Germany, Croatia, Slovenia and the Czech Republic, Hungary, as well as in Bosnia and Herzegovina and Serbia. In total, the group has 185 branches in Europe and manages assets of $13.6 billion.

Remember that this morning the Russian financial sector collapsed. Sberbank fell by 73%.


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