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ECB says Russia bank subsidiary likely to fail

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."

February 28, 2022 / 07:24 AM IST
Image: Reuters

Image: Reuters

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 said 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 said 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. Europe's bank resolution board separately said it has imposed a payments ban on money owed by the bank and a limit on how much depositors can withdraw.

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



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Reuters
first published: Feb 28, 2022 07:24 am
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