MNB withdraws Sberbank Magyarország license

Banking

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The National Bank of Hungary (MNB) said it withdrew the lending license of Russian-owned Sberbank Magyarország because of its "serious liquidity and capital situation" amid international sanctions against Russia and ordered the credit institution to be wound up, according to a report by state news wire MTI.

The central bank and financial market watchdog noted that the European Union's Single Resolution Board (SRB) said late Tuesday that it had ordered Sberbank Magyarország's parent company, Austria-based Sberbank Europe, to be wound up.

Hungary's National Deposit Insurance Fund (OBA) will pay Sberbank Magyarország depositors compensation up to the EUR 100,000 coverage threshold within 10 days.

MNB said the measures "have no impact on the other members of Hungary's financial system...which continue to serve their clients steadfastly in the usual manner".

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