28 February 2022

From Monday the MNB ordered two bank holidays at the Hungarian Sberbank at the request of the credit institution. During this period customers will be able to make bank card transactions and can receive incoming items on their accounts but will not be able to perform account transactions. The MNB is reviewing the state of the credit institution following the failing or likely to fail situation of the European parent bank announced by the EU resolution authority. The situation has no effect on the other members of the Hungarian financial institution system, which serve their customers stably and in the usual order.

The Single Resolution Board (SRB), the resolution organisation of the European Union has announced that Sberbank Europe AG, Austria, has experienced serious liquidity problems as a result of the Russo-Ukrainian war, the credit institution is probably unable to meet its debts or other obligations as they fall due in the near future, and as a result it is failing or likely to fail. The Austrian bank is the owner of Sberbank Magyarország Zrt. in Hungary and several other Central European subsidiaries.

Following this, the Central Bank of Hungary (MNB) ordered two bank holidays from 28 February to 1 March 2022 at the request of the domestic subsidiary. During this period, the MNB will review the operation and condition of the Hungarian subsidiary in the current situation and make the most appropriate decision in terms of the stability of the financial markets and customer interests as soon as possible. During bank holidays, customers are still able to initiate bank card transactions, and can receive incoming items on their accounts, so they have the resources they need for everyday life. However, they cannot initiate account transactions.

The MNB will provide ongoing information to customers and all interested parties on its website. Besides Sberbank Magyarország Zrt., consumers can get their answers to this question in writing, by phone or in person at the MNB's customer service in Budapest and at the Financial Navigator advisory offices available at county offices. As is well known, the security of the depositors of Sberbank Magyarország Zrt. - in addition to its reliable operation - is also guaranteed by the Hungarian National Deposit Insurance Fund (OBA).

In compliance with its legal obligations, the MNB continuously supervises the business integrity (prudential), cash flow and consumer protection of the domestic financial system. Based on this, it can be stated that the current events have no effect on other members of the domestic financial system, which serve their customers safely and in the usual order.

Magyar Nemzeti Bank