Wednesday, August 17, 2022

Russian Sberbank subsidiary likely to fail, European Central Bank says

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FRANKFURT, Germany – An Austria-based subsidiary of Russia’s state-owned Sberbank has been ruled likely to fail after depositors fled due to the impact of Russia’s invasion of Ukraine.

The European Central Bank said early Monday that the bank had 13.6 billion euros in assets at the end of last year, but has experienced “significant deposit outflows” due to “geopolitical tensions.”

The ECB says Vienna-headquartered Sberbank Europe AG “is likely to be unable to pay its debts or other liabilities as they fall due.” The bank is a fully owned subsidiary of Russia’s Sberbank, whose majority shareholder is the Russian government.

Europe’s bank resolution board separately says it has imposed a payments ban on money owed by the bank and a limit on how much depositors can withdraw. The board will decide on further steps, which could include restructuring, selling or liquidating the bank.

Sberbank Europe operates 185 branches and has more than 3,933 employees.

Copyright © 2022 The Washington Times, LLC.



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