VTB Bank Is Preparing to Close European Operations: Report
- The bank was hit with some tough sanctions by the western governments.
- Earlier, Sberbank pulled out of Europe.
VTB Bank, which is Russia’s second-largest lender, has decided to wind down its operations in Europe as the bank is struggling with the rampant sanctions of the Western governments, Financial Times reported. However, the bank has not officially confirmed the decision yet.
“VTB Bank Europe continues to operate but is looking at ways to simplify its activities,” the bank said in a statement.
Earlier, Russia’s largest lender Sberbank pulled out of Europe by liquidating its Austrian and other subsidiaries and selling some of the branches to local outfits. Sberbank and VTB bank together hold more than half of the Russian banking market.
VTB offers investment banking services in London and operates in the retail banking market in Germany where it serves more than 160,000 customers and holds over €4 billion in customer deposits. VTB Europe lured retail customers by not charging negative interest rates and serves local German governments, 600 companies and 150 financial institutions.
Facing Tough Sanctions
The bank was one of the primary targets of the Western governments when they were imposing sanctions. Most recently, the European Union decided to ban VTB and six other Russian banks from accessing SWIFT, which will be effective from March 12.
Additionally, the London operations of the bank were interrupted as its London Stock Exchange membership was suspended last month, making it unable to trade securities on the exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term. Moreover, VTB Capital was termed as a default as a member of the clearinghouse
Clearing House
A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e
A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e
Read this Term LCH.
Furthermore, the UK government froze VTB’s assets last month and granted a 30-day license until March 27 to close all transactions and pay its employees.
“There’s no attempt at continuing as normal,” an anonymous source told FT.
“We’re trying to do it as swiftly as we can — but operations in Europe are much more complicated than those in the UK. We’re doing everything we can to get customers’ money back to them. It’s critical we do this in an orderly manner.”
VTB Bank, which is Russia’s second-largest lender, has decided to wind down its operations in Europe as the bank is struggling with the rampant sanctions of the Western governments, Financial Times reported. However, the bank has not officially confirmed the decision yet.
“VTB Bank Europe continues to operate but is looking at ways to simplify its activities,” the bank said in a statement.
Earlier, Russia’s largest lender Sberbank pulled out of Europe by liquidating its Austrian and other subsidiaries and selling some of the branches to local outfits. Sberbank and VTB bank together hold more than half of the Russian banking market.
VTB offers investment banking services in London and operates in the retail banking market in Germany where it serves more than 160,000 customers and holds over €4 billion in customer deposits. VTB Europe lured retail customers by not charging negative interest rates and serves local German governments, 600 companies and 150 financial institutions.
Facing Tough Sanctions
The bank was one of the primary targets of the Western governments when they were imposing sanctions. Most recently, the European Union decided to ban VTB and six other Russian banks from accessing SWIFT, which will be effective from March 12.
Additionally, the London operations of the bank were interrupted as its London Stock Exchange membership was suspended last month, making it unable to trade securities on the exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv
Read this Term. Moreover, VTB Capital was termed as a default as a member of the clearinghouse
Clearing House
A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e
A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e
Read this Term LCH.
Furthermore, the UK government froze VTB’s assets last month and granted a 30-day license until March 27 to close all transactions and pay its employees.
“There’s no attempt at continuing as normal,” an anonymous source told FT.
“We’re trying to do it as swiftly as we can — but operations in Europe are much more complicated than those in the UK. We’re doing everything we can to get customers’ money back to them. It’s critical we do this in an orderly manner.”