CNB revokes licence of Sberbank CZ

The Czech National Bank has revoked the licence of Sberbank CZ. This decision became final and conclusive on 30 April 2022. The reason for revoking the licence was that Sberbank CZ has been unable to meet its obligations to clients since 25 February 2022. Further to the revocation of the licence, the CNB will file a petition to the court to appoint a liquidator of Sberbank CZ.

As Sberbank CZ failed to file an appeal against the CNB’s decision to revoke its licence within the statutory time limit of 15 days of delivery, the decision became final and conclusive. As of 30 April 2022, Sberbank CZ is therefore not allowed to accept deposits, provide loans and carry on any other activities except those necessary to settle its claims and liabilities.

The court must rule on the CNB’s petition to appoint a liquidator within 24 hours. The appointed liquidator will assess the solvency of Sberbank CZ and the assessment will be followed – depending on its outcome – by liquidation or insolvency.

The liquidator or insolvency trustee will start to sell off the assets of Sberbank CZ and gradually satisfy the creditors from the proceeds of the asset sales. In the case of liquidation, creditors are satisfied proportionately, whereas in insolvency proceedings they are satisfied in the order stipulated by law. The process of liquidating a bank is described in the Act on Banks (Act No. 21/1992 Coll., as amended).

The CNB opened administrative proceedings to revoke the licence of Sberbank CZ on 28 February 2022, as the bank was unable to meet its obligations to clients following a deterioration in its liquidity situation. This was caused by a significant outflow of client deposits in reaction to Russia’s invasion of Ukraine. At the same time as intitating the administrative proceedings, the CNB issued a preliminary measure preventing the bank from providing new loans and accepting deposits. This measure also restricted Sberbank CZ in disposing of its assets and liabilities.

On the same day, the CNB informed the Financial Market Guarantee System that Sberbank CZ was unable to meet its obligations to the entitled entities. The Financial Market Guarantee System commenced the payout of compensation for insured deposits on 9 March 2022. As of today, 90% of deposits has been paid out.

Markéta Fišerová
Director of the Communications Division and CNB Spokesperson