Hungary's central bank and financial market watchdog said the EU's Single Resolution Board (SRB) announced that Sberbank Europe, based in Austria, "is probably unable to meet its debts or other obligations as they fall due in the near future, and as a result it is failing or likely to fail".
MNB ordered the two-day bank holiday, from February 28 until March 1, at the request of Sberbank Magyarország.
During the period, MNB "will review the operation and condition of the Hungarian subsidiary in the current situation and make the most appropriate decision in terms of the stability of the financial markets and customer interests as soon as possible".
Sberbank Magyarország clients will be able to initiate bank card transactions and may receive account transfers, but they may not initiate account transactions.
MNB noted that Sberbank Magyarország's deposits are covered by the Hungarian National Deposit Insurance Fund (OBA).
"The current events have no effect on other members of the domestic financial system, which serve their customers safely and in the usual order," MNB said.
Sberbank Magyarország had total assets of HUF 511 billion at the end of 2020, public records show. Client deposits stood close to HUF 355 bln.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
