Bank resolution – systemic arrangements and key challenges

Sberbank banka, which had been part of the Sberbank Europe banking group, underwent resolution proceedings in February. Following the outbreak of the Russian military aggression, banks under Russian ownership, including the aforementioned banking group, very quickly faced a loss of confidence and liquidity difficulties.

After it had been declared that the banking group was failing or was likely to fail, a decision to apply a resolution measure (and not a liquidation measure) was taken for Sberbank banka in Slovenia, which was successfully implemented through its sale to Nova Ljubljanska banka.

The aforementioned solution maintained financial stability in Slovenia without burdening other banks or taxpayers. Here we should provide a detailed explanation of how the systemic arrangements for bank resolution at EU level work, and what the key challenges that we face in this area are.

Publication in Slovene only.