Swiss financial regulator intervenes with Sberbank unit

Switzerland's financial regulator, Finma, laid out protective measures for Sberbank of Russia's unit in the country amid international sanctions against the Moscow-based parent.

Finma moved to defer Zurich-based Sberbank (Switzerland) AG's obligations from deposits by 60 days to May 2. The unit is also barred from making any payments or transactions not necessary for its operations as a bank without Finma's approval.

Sberbank (Switzerland) faces risks of liquidity constraints given the several sanctions against its parent for Russia's invasion of Ukraine, Finma said May 3.

Sberbank (Switzerland) is an indirect Sberbank unit and is not directly connected to now-collapsed Austria-based Sberbank Europe AG, according to the regulator. It deals in commodity trade finance and has no retail clients.

Finma said it will appoint an investigating agent to monitor the financial stability of Sberbank (Switzerland), which has stopped any new business until further notice and is largely restructuring. The regulator is also in contact with companies under its oversight that are exposed to Russia and Ukraine. Its focus is on prudential matters, as well as on legal risks.

"The aim is to identify any risks and possible potential for contagion at an early stage," it said.

Meanwhile, the Czech central bank revoked the license of Sberbank CZ a.s., a local lender owned by Sberbank of Russia via Sberbank Europe, with the decision becoming final on April 30. Following the license revocation, Ceska Narodni Banka will file a petition to the court to appoint a liquidator for the lender, it said May 2.

The central bank launched steps to revoke Sberbank CZ's license in early March due to the deterioration of the bank's liquidity amid an outflow of deposits. The lender was banned at the time from disposing of its assets and liabilities and from issuing new loans and accepting deposits.

Sberbank CZ said April 30 that it has decided not to appeal the central bank's decision to revoke its license as it believes it is the best solution in the current situation for all its creditors, clients and the stability of the Czech financial market.