Communicating the insolvency of Sberbank CZ

At the beginning of the war in Ukraine in 2022, Sberbank CZ clients lost confidence in the bank and began to withdraw their deposits en masse. This led to the bank’s compulsory liquidation and consequently its entry into insolvency proceedings.

 

The speed of these proceedings was critical: prolongation could have led to reduced yields, a deterioration in the quality of loans, or Sberbank CZ’s exemption from the OFAC sanctions list may not have been extended. In order to minimize impact on creditors, the most appropriate solution was therefore a quick sale to another bank. Active, transparent, and substantive communication towards creditors was an important part of this process. This was done either directly or through the media. We used regular meetings with journalists, who we educated on the issue, and we conducted individual interviews in the media with the insolvency administrator.

 

Approximately 57 billion crowns were paid to creditors in the spring of 2024, which represented 95% of their claims. These insolvency proceedings have become the most successful in the Czech Republic, both in terms of satisfaction and speed. Correct and timely communication played its part.

 

Source of cover photo: Sberbank CZ