WIREDGOV

The European Commission yesterday approved the resolution schemes for Sberbank d.d. in Croatia and Sberbank banca d.d. in Slovenia (both subsidiaries of Sberbank Europe AG), based on the schemes adopted by the Single Resolution Board (SRB). The resolution of these banks was approved under the EU's bank recovery and resolution framework – through the sale-of-business tool – to Hrvatska Poštanska Banka d.d. and Nova Ljubljanska Bank d.d, respectively.

Yesterday's decisions mean that these two banks will open on Wednesday, 2 March, as normal and their customers will continue to be served without disruption. This will ensure that financial stability in Croatia and Slovenia is safeguarded and depositors are protected. No aid from the Single Resolution Fund has been granted and the sale is subject to normal merger and regulatory review.

The Commission has endorsed the resolution schemes in line with the EU resolution framework, given that the conditions for resolution set out in this framework were met: the banks were failing, there were no private sector solutions outside of resolution, there were no supervisory actions that would have prevented its failure, and a resolution action was necessary in the public interest.

The Commission has also taken note that the SRB deemed that resolution is not necessary for Sberbank Europe AG in Austria and that this entity will be wound up under Austrian insolvency proceedings. Depositors will be compensated up to €100,000 through the Austrian Deposit Guarantee Schemes, in accordance with the EU Directive on Deposit Guarantee Schemes.

Furthermore, the Commission has also taken note of the decision by the Czech authorities to close and wind down the Czech subsidiary. Depositors will be compensated up to €100,000.

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