CNB has launched a process to revoke Sberbank CZ's banking license

The Czech National Bank today took steps to revoke the banking license of Sberbank CZ, which has ties to Russia. The reason is the deterioration of the bank's situation in connection with the outflow of deposits after the invasion of Ukraine by Russia. In connection with this, the CNB issued a preliminary measure preventing the bank from handling assets and liabilities, including granting new loans and accepting deposits, the bank informed.

Deposits of bank clients, including Sberbank, are legally insured up to 100,000 euros (approximately CZK 2.5 million) for one depositor at one bank or credit union.

"The liquidity crisis of Sberbank CZ was caused by external, geopolitical developments. This is an isolated and specific problem of the bank, which is not significant from the point of view of the domestic banking sector. It thus remains one of the most robust and stable in Europe," said CNB Governor Jiří Rusnok. .

The situation at Sberbank CZ was discussed by the CNB Board at its extraordinary meeting on 27 February. "The procedure against Sberbank CZ takes place within the so-called crisis resolution regime, which deals with the situation of failing banks and proposes a solution that minimizes the impact on the economy and financial system. The Bank Board noted that Sberbank CZ is failing and cannot be expected to this failure could have been averted by other measures within a reasonable time," the CNB said. According to them, it can be assumed that the chosen solution will not have an impact on the stability of the Czech financial sector.

Source: CTK