The National Bank of Hungary (NBH) on Tuesday said it withdrew the lending licence of Russian-owned Sberbank Magyarorszag because of its „serious liquidity and capital situation” amid international sanctions against Russia and ordered the credit institution to be wound up.

The central bank and financial market watchdog noted that the European Union’s Single Resolution Board (SRB) said late Tuesday that it had ordered Sberbank Magyarorszag’s parent company, Austria-based Sberbank Europe, to be wound up.

Hungary’s National Deposit Insurance Fund (OBA) will pay Sberbank Magyarorszag depositors compensation up to the EUR 100,000 coverage threshold within ten days.

The NBH said the measures „have no impact on the other members of Hungary’s financial system…which continue to serve their clients steadfastly in the usual manner”.