Czech National Bank decided to revoke the banking license of Sberbank CZ

24/03/2022

At the end of last month, due to the deterioration of Sberbank's CZ liquidity situation, the Czech National Bank decided to revoke its banking license. According to official statements, the situation was caused by a significant deposit withdrawal after the escalation of the Russian-Ukrainian conflict. The decision to revoke the banking license was made on 28 February 2022.

Since the deposits are insured, Sberbank clients will not lose their money; the Financial Market Guarantee System will take care of the compensation. The maximum amount of compensation per depositor is EUR 100,000, i.e. CZK 2,499,500. In specific cases, the client can request the payment of increased compensation, up to a maximum of EUR 200,000. It is possible to apply for the payment of basic deposit compensation for a period of three years. Komerční banka was entrusted with the payout of insured deposits. Detailed information can be found on the websites of Komerční banka and the Guarantee System.

If you have a mortgage loan arranged in Sberbank, it is necessary to continue repaying in full monthly installment. What can be done with such a mortgage? Currently, the following options are offered in particular:

  • Refinance the mortgage to another bank under current market conditions.
  • Sberbank's receivables will be taken over by another bank and the loan will be repaid to the accepting bank under the conditions specified in the loan agreement. In this case, the interest rate could be maintained during the original fixation period.
  • Repayment of the loan if the loan participant has funds for early repayment of the remaining loan amount.
  • Mandatory repayment of loans would be an extreme option if the bank's receivables were not taken over and there was no refinancing or the entire mortgage repayment.

If you are considering refinancing a mortgage loan and you would like to get an experienced mortgage specialist who will help you with the whole process, then do not hesitate to contact us.

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