The European Central Bank (ECB) evaluated this Monday the possible bankruptcy of the Russian-owned bank Sberbank Europe AG and its subsidiaries in Croatia and Slovenia, as a result of the outflow of deposits as a result of geopolitical tensions, due to the invasion of Russia in Ukraine .
“Sberbank Europe AG and its two subsidiaries in the banking union, Sberbank dd in Croatia and Sberbank banka dd in Slovenia, are either bankrupt or likely to do so due to their deteriorating liquidity situation,” reported the European Monetary Authority on its website.
Austrian parent bank Sberbank Europe AG is wholly owned by public joint-stock company Sberbank of Russia, whose majority shareholder is the Russian Federation, the bank said.
The ECB made the decision after determining that, in the near future, the bank is likely to be unable to pay its debts or other liabilities when they fall due.
Sberbank Europe AG and its subsidiaries “experienced significant deposit outflows as a result of the reputational impact of geopolitical tensions. This led to a deterioration of their liquidity position.”
According to the ECB, “there are no measures available with a realistic chance of restoring this position at the group level and in each of its subsidiaries within the banking union.”
Retail depositors are protected up to €100,000 per depositor per bank in the European Union, protection afforded by deposit guarantee schemes in place in Austria, including the German branch of the bank, Croatia and Slovenia.
Sberbank Europe AG also has subsidiaries in Bosnia and Herzegovina (both in the Federation of Bosnia and Herzegovina and the Republika Srpska), the Czech Republic, Hungary and Serbia.
