Sberbank CZ announced restrictions on card transactions and the closure of branches

Sberbank CZ announced on its website that it has temporarily restricted all card transactions. The reason, according to the bank, is a significant outflow of client deposits due to the conflict in Ukraine. It also said it was forced to close its branches for security reasons. It closed them on Friday at 14:00. Internet banking, which has not worked since noon on Friday, has already been partially restored, the bank said.

Sberbank CZ, which has ties to Russia, said on Friday that the reason for closing the branches was security problems at the branches. On Thursdays and Fridays, queues of people formed in front of some of the bank's branches, who wanted to cancel services or asked for information about the bank's operation. Its internet banking also didn't work on Friday.

Some Czech companies are announcing a boycott of Sberbank CZ's services due to the Russian invasion of Ukraine.

Deposits of bank clients, including Sberbank, are legally insured up to 100,000 euros (approximately 2.5 million crowns) for one depositor at one bank or credit union. The Czech National Bank has announced that it is monitoring and resolving the situation around Sberbank.

The main shareholder of Sberbank CZ is Vienna-based Sberbank Europe, a subsidiary of the largest Russian banking house Sberbank Russia. In addition, its 50% owner with one voting right is the Ministry of Finance of the Russian Federation. The rest are owned by investors, the bank is traded on the stock exchange. Sberbank CZ is regulated and supervised by the Czech National Bank. It has been operating in the Czech Republic since 1993, and until 2013 it operated under the name Volksbank. It has 25 branches and about 120,000 clients.

Source: CTK