If you have any obligation at Sberbank, you are still obliged to repay your loans to the bank. When the Czech National Bank issues a bank insolvency notice, a bank liquidator will be appointed, who will then issue instructions to you on how to proceed. You can find out about insolvency from the website of the Czech National Bank, from the website of the Guarantee System and also here at Měšec.
What’s going on now?
The current situation of the bank is such that Sberbank already does not have liquidity available (she ran out of cash, clients chose it). Therefore, you cannot withdraw from another bank’s ATM and the money in your accounts can no longer be used in any way.
Commitments last
The obligation to repay its loans to the bank still persists. If the Czech National Bank issues a bank insolvency notice, a liquidator will be appointed, who will then issue instructions on how to proceed.
Payment system with Sberbank stopped for incoming payments and outgoing payments. However, loan repayment accounts do work.
At present, therefore, it is necessary to wait for further instructions from the CNB’s banking supervision.
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What about payment orders
As of February 28, 2022, no payment orders will leave the Sberbank, ie permanent payments, collections, etc. If you have regular payments set up from your Sberbank account (lunches, schools, kindergartens, insurance, investments, etc.), you need to send money from other banks.
If you repay liabilities from Sberbank to another creditor (eg a loan from another company), it is necessary to contact your creditor immediately and agree, for example, on the deferral of repayments until the compensation of deposits in Sberbank is paid. Or a commitment to pay from your bank account.
Deposit compensation in 7 days
You will receive your money no earlier than 7 working days after the CNB receives a notification from the GSFT about the bank’s inability to meet its obligations. It’s already happened the first payouts begin from 9 March 2022 at selected branches of Komerční banka.
Questions and Answers
Official announcement of the CNB.
What does the CNB’s measures against Sberbank CZ mean?
On 28 February 2022, the Czech National Bank ordered Sberbank CZ to refrain from:
– any conduct consisting in the granting of loans, including the possibility of drawing down part or all of the loans and extending the maturity of the loans already granted;
– any conduct consisting in accepting deposits;
– any conduct leading to the acquisition (purchase) of assets with an assigned risk weight of more than 0% pursuant to Articles 114-134 of the Regulation, with the exception of assets necessary to ensure day-to-day operations and depositing with banks licensed for their activities pursuant to § 1 paragraph 1 of the Act on Banks or Banks domiciled in the Member States of the European Union, with the exception of banks in the Sberbank Group;
– the transfer of assets or their encumbrance on the rights of third parties.
When do clients get their deposits?
After the Czech National Bank declares the bank incapable of meeting its obligations and delivers its decision to it. Following this announcement, the Financial Market Guarantee System takes over.
What deposits are insured in the Czech Republic? Up to what amount?
In the Czech Republic, all non-anonymous deposits of natural and legal persons held in Czech crowns and in foreign currency are insured up to a maximum equivalent of EUR 100,000 (approx. CZK 2.5 million) per depositor at one bank or credit union. Within this limit, refunds are provided up to 100% of the deposit amount.
Municipal and regional deposits are insured only if they are entitled to tax revenues, and their tax revenues do not exceed EUR 500,000 and if other legal conditions are met.
The Deposit Insurance Fund protects deposits with all banks and credit unions in the Czech Republic, and if a foreign bank from a country outside the European Economic Area (“EEA”) operates in the Czech Republic, so do deposits with it. These are mainly credit balances on accounts (current accounts, term deposits, etc.) or passbooks or confirmed by a certificate of deposit, deposit slip or other similar document.
When will the Financial Market Guarantee Scheme start paying out deposit refunds, how will the payout take place?
Compensation for receivables from insured deposits is always made by the Financial Market Guarantee System (the “Guarantee System”), which also manages the Deposit Insurance Fund. As a rule, he entrusts the payment to a bank with an extensive branch network.
The guarantee system is obliged to start payment within 7 working days from the decisive day when:
– the guarantee system has received a written notification from the Czech National Bank on the inability of the bank or credit union to meet its obligations to the entitled persons under the legal and contractual conditions,
– The court or foreign court has issued a bankruptcy decision or other decision for reasons directly related to the financial situation of the bank or credit union, which has the effect of suspending the right of depositors to dispose of deposits covered by the insurance.
How much money does GSFT have in the deposit insurance fund?
According to the Czech National Bank, the Financial Market Guarantee System now has CZK 35 billion at its disposal, which it can use to pay out deposits subject to insurance under the Banking Act. This amount should conveniently cover all deposits in Sberbank CZ that are subject to statutory insurance.
Will payment cards or other means of payment (eg checks) issued by Sberbank work?
The preliminary measure does not prohibit the execution of clients’ payment transactions, however, the limited possibility of their implementation depends on the current liquidity situation of the bank, while the specific conditions of the restriction should be continuously updated by the bank (web, call center).
Will scheduled outgoing payments be made in the future – standing orders and direct debits?
The interim measure does not prohibit the execution of clients’ payment transactions by standing orders and direct debits in favor of accounts with another bank, resp. other persons.
Will payments, such as payouts, continue to be able to come to Sberbank CZ?
Incoming payments after the effective date of the interim measure will not be accepted and will be returned to the accounts of the sending banks. It is necessary to contact the payer and agree on other ways of performing the transaction, eg inform him about another account with another institution to which the payment is to be made.
I entered a payment order that Sberbank CZ did not execute. What will happen to this payment?
Outstanding payments are returned to the Sberbank account. The interim measure does not prohibit the execution of clients’ payment transactions, but the amount of transactions may be limited due to the bank’s limited liquidity situation.
Do clients also have to repay the mortgages provided by Sberbank CZ?
The obligation to Sberbank CZ does not expire and the client is obliged to repay it further.
If the client has set up a loan repayment from a current account with Sberbank CZ, on which there are not enough funds, it is necessary to look for another solution, because accepting additional funds to accounts with Sberbank CZ is prohibited. If the contract does not allow for a form of repayment other than direct debit, Sberbank CZ should propose another solution. The debtor is not liable for the delay if he is unable to perform due to the delay on the part of Sberbank CZ.
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What about operating corporate loans? Will they have to be repaid immediately, or will they be able to repay further?
It depends on the terms of the contract, but in general the obligations do not expire and the borrowers should continue to repay the loan according to the terms of the contract.
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