Sberbank Europe is in trouble. Regulators prohibit their business activities

Austrian financial regulators announced on Tuesday that they have banned Sberbank Europe from all trading activity, with immediate effect. He did so at the behest of the European Central Bank (ECB), Reuters wrote. The external auditor will take over the supervision of the bank. The measures of the ECB are explained by the serious financial problems that the bank is experiencing in connection with the aggression against Ukraine and sanctions against Russia.

IN statement Austrian regulator FMA said it had banned Sberbank Europe from “resume all business activities” with immediate effect. The suspension of activities under the FMA will trigger a guarantee system that guarantees deposits of up to 100,000 euros (2.5 million crowns). This must be paid within ten working days.

On Monday, the ECB warned of the bankruptcy of banks with ties to Russia. According to him, Sberbank Europe is now facing much worse liquidity due to the effects of sanctions as a result of Russia’s invasion of Ukraine. The actual condition of the bank will be checked by an external auditor appointed by the FMA.

Sberbank Europe also has subsidiaries in the Czech Republic, Hungary, Serbia and Bosnia, which are not under the jurisdiction of the ECB. The Czech National Bank said on Monday that it had initiated steps to revoke Sberbank CZ’s banking license.

Roderick Glisson

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