The closed branch of the Sberbank bank in Prague's Lazarská street in a picture taken on February 28, 2022.
Prague – The guarantee system of the financial market paid out deposit compensation over 12 months through the branches of Komerční banka more than 87,000 clients of the bankrupt Sberbank CZ. They obtained 25.362 billion crowns, which is 98 percent of the total claims. The largest payout of deposit compensation in the history of the Czech deposit insurance system continues even a year after the collapse of Sberbank CZ, ČTK Garanční systém reported today.
The Guarantee System began paying deposit compensation from the bankrupt Sberbank CZ on March 9, 2022, i.e. seven working days after the collapse of the bank.
The largest number of clients came for deposit refunds in the first days after the start of payments, said Renáta Kadlecová, executive director of the Guarantee System. “On Wednesday, March 9, there were 13,348 clients, the following day, 7,971, and on Friday, March 11, 6,301 clients. During March, roughly two-thirds of the bank's clients came to Komerční banka branches for deposit refunds. From the end of March, the numbers per day varied in the mid and low hundreds,” she said.
The guarantee system has a legal obligation to start the payment of compensation for deposits from a failed financial institution within seven working days from the day the Czech National Bank announces that the financial institution is unable to meet its obligations. This was also the case with Sberbank CZ, when the collapse of the bank occurred almost overnight. In terms of financial volume, it was also the largest deposit compensation payment.
“In terms of the amount of insured deposits, Sberbank's payout is the largest. In terms of the number of clients paid out, the largest payout in history was the payout to clients of the bankrupt Union Bank in 2003. At that time, there were 130,000 clients. However, with more than 121,000 clients, Sberbank is right at the second place,” said Kadlecová.
By law, Sberbank CZ clients have three years to collect deposit refunds. Another approximately 34,000 clients have until March 10, 2025. “Among clients of failed financial institutions who are entitled to payment of deposit compensation, there are often a large number of those who had small balances in their accounts. It is not an exception that such clients do not even come for compensation. It is simply not worth it for them to go to the branch of the paying bank because of the units of crowns,” said Kadlecová. Unclaimed money remains in guarantee system and are intended for further deposit compensation payments.
The Prague Municipal Court declared bankruptcy on Sberbank CZ at the end of August last year. The CNB took legal action from the bank at the beginning of May license and the Prague Municipal Court then sent the bank into liquidation. Steps to revoke the license were initiated by the CNB on February 28, 2022. The reason was the deterioration of the situation of Sberbank CZ due to the outflow of deposits after the start of the Russian invasion of Ukraine.