The Austrian Financial Market Authority (FMA) on the instructions of the European Central Bank (ECB) issued a decision prohibiting the licensed credit institution Sberbank Europe AG. The regulator has appointed a Government Commissioner to supervise the liquidation of the bank. Sberbank Europe AG, s subsidiary of the Russian state-owned Sberbank in Moscow, is a significant institution in the European Single Supervisory Mechanism (SSM) and is directly supervised by the ECB.
The prohibition of business operations legally triggers the deposit guarantee case, which is why the Austrian deposit guarantee system has to pay out secured deposits within ten banking days. These measures are taken to protect the financial interests of creditors and to safeguard the assets entrusted to the supervised entity.
The closure is Sberbank is a direct result of the Russian invasion of Ukraine and the imposed sanctions. It is a question of what will happen to the subsidiaries of Western banks in Russia. Rumors suggest that closures are also on the agenda.
