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PRAGUE, Feb 25 (Reuters) – The Czech central bank said on Friday it was “using its supervisory tools” in regards to Russian Sberbank’s Czech operations in the wake of Russia’s invasion of Ukraine and as the bank temporarily closed branches in the Czech Republic.
The Czech unit of Sberbank (SBER.MM) said on Friday it had shut its Czech branches due to security concerns for its staff. It also reported higher demand for withdrawals.
Lines outside branches could be seen in Prague on Friday.
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“The Czech National Bank is not only monitoring the situation regarding Sberbank as a result of Russia’s attack on Ukraine, but above all it is addressing it using its supervisory tools,” the CNB said in a statement.
“Standard procedures are established for such situations both on the part of the supervised entity and on the part of the Czech National Bank in order to minimise the impacts on clients.”
The central bank did not comment further.
Sberbank’s Czech unit, which has 25 branches in the Czech Republic and is part of Sberbank Europe, said that it has been in contact with the central bank.
“Sberbank has been cooperating with the central bank in regards to solving the potential impact of the current situation on the bank and its clients,” spokesperson Radka Cerna said.
“That means how to minimise the impact on clients which has been dealt with since the heightened risks emerged.”
The bank held 85.6 billion crowns ($3.90 billion) in total assets at the end of the third quarter last year, less than 1% of the total in the Czech banking sector.
With the escalating crisis in Ukraine after Russia’s invasion – which the Czech government has condemned with western allies – Sberbank said earlier on Friday security problems had appeared at its Czech branches.
“Our employees are mostly citizens of the Czech Republic and we have to provide them increased security protection, because they face physical attacks,” Cerna said, without elaborating.
“The bank is expecting that already tomorrow branches will be open again as normal,” she said.
($1=21.9350 Czech crowns)
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Reporting by Robert Muller, Jan Lopatka and Jason Hovet; Editing by Kirsten Donovan
Our Standards: The Thomson Reuters Trust Principles.
Register now for FREE unlimited access to Reuters.comPRAGUE, Feb 25 (Reuters) – The Czech central bank said on Friday it was “using its supervisory tools” in regards to Russian Sberbank’s Czech operations in the wake of Russia’s invasion of Ukraine and as the bank temporarily closed branches in the Czech Republic.The Czech unit of Sberbank (SBER.MM) said on Friday it had shut its Czech branches due to security concerns for its staff. It also reported higher demand for withdrawals. Lines outside branches could be seen in Prague on Friday.Register now for FREE unlimited access to Reuters.com”The Czech National Bank is not only monitoring the situation regarding Sberbank as a result of Russia’s attack on Ukraine, but above all it is addressing it using its supervisory tools,” the CNB said in a statement.”Standard procedures are established for such situations both on the part of the supervised entity and on the part of the Czech National Bank in order to minimise the impacts on clients.”The central bank did not comment further.Sberbank’s Czech unit, which has 25 branches in the Czech Republic and is part of Sberbank Europe, said that it has been in contact with the central bank.”Sberbank has been cooperating with the central bank in regards to solving the potential impact of the current situation on the bank and its clients,” spokesperson Radka Cerna said.”That means how to minimise the impact on clients which has been dealt with since the heightened risks emerged.”The bank held 85.6 billion crowns ($3.90 billion) in total assets at the end of the third quarter last year, less than 1% of the total in the Czech banking sector.With the escalating crisis in Ukraine after Russia’s invasion – which the Czech government has condemned with western allies – Sberbank said earlier on Friday security problems had appeared at its Czech branches.”Our employees are mostly citizens of the Czech Republic and we have to provide them increased security protection, because they face physical attacks,” Cerna said, without elaborating.”The bank is expecting that already tomorrow branches will be open again as normal,” she said.($1=21.9350 Czech crowns)Register now for FREE unlimited access to Reuters.comReporting by Robert Muller, Jan Lopatka and Jason Hovet; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.