The European subsidiary of the second largest Russian bank was on the brink at the beginning of the Ukraine war, but has since stabilized.
(Photo: Reuters)
Frankfurt The German financial regulator Bafin has appointed a special representative at VTB Europe. The Bafin announced this on Tuesday. The measure is intended to ensure that the legal requirements for the minimum number of managers at a bank are again met. Accordingly, at least two directors are required.
At the end of March, however, four out of five board members left the money house, as the Handelsblatt had exclusively reported. The only remaining board member at VTB Europe was CFO Miro Zadro.
According to the Bafin announcement, the special representative will continue to work with Zadro to reduce the business activities of VTB Europe. He also has managerial powers.
The European subsidiary of the second largest Russian bank VTB has been in a state of emergency since the Russian attack on Ukraine. A week ago, the Bafin had already prohibited the parent company VTB from exercising its voting rights in the European subsidiary, thereby withdrawing control of VTB Europe from the parent company from Saint Petersburg.
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The measure was the consequence of the EU’s fifth package of sanctions against Russia, Bafin said at the time. The EU had previously passed its new sanctions. This also includes a complete ban on transactions at the expense of four important Russian banks, including VTB.
The operational business situation of VTB Bank Europe is basically unchanged, the asset and liquidity situation is still orderly, according to the Bafin in the previous week. “Depositors can continue to dispose of their money freely, and borrowers can service their loans with interest and principal. Other creditors of the bank may also be served accordingly and accept payments from the bank – unless they have been sanctioned themselves.” Other banks, service providers and employees may continue to work for VTB Bank Europe.
VTB Europe has collected a lot of money, especially from German private investors. At the end of September, customer deposits amounted to 4.4 billion euros. In the meantime, however, this sum is likely to have fallen significantly.
More: VTB Europe in a state of emergency – four board members resign, lettering is covered