SRB faces tough choices over Sberbank Europe failure
Both resolution or liquidation could lead to losses for public purse, depending on client base
The unique circumstances surrounding the European Union’s subsidiary of Russian state-owned bank Sberbank create a serious dilemma for the European Single Resolution Board (SRB), according to bank resolution experts, with risks to the public purse whatever course of action is taken against the failing entity.
Amid a growing tide of sanctions against Sberbank and the Russian government, the European Central Bank on February 27 declared Sberbank Europe as failing or likely to fail. Normally, the
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