The European arm of Sberbank, Russia's biggest lender, has been closed by order of the European Central Bank (ECB), which had warned it faced failure due to a run on deposits after Russia invaded Ukraine.
The European Central Bank (ECB) concluded on Monday (28 February) that Sberbank Europe is failing or likely to fail, following considerable withdrawals from the accounts of Sberbank’s European subsidiary over the past week.
Despite the volatility that would trigger the UK’s departure from the EU, Brexit does not represent an “imminent risk” to financial stability, according to Single Resolution Board President Elke König.
Banks should invest more in IT infrastructure because providing quality data immediately makes all the difference when a bank needs to be resolved in an orderly fashion, the EU's Single Resolution Board has said.
The new Single Resolution Board intervened for the first time early this morning (7 June) to save Banco Popular, a troubled Spanish bank whose deposits were protected without using taxpayers’ money after Banco Santander decided to acquire its assets.