Hungary's central bank withdraws licence of Sberbank's unit

BUDAPEST: The National Bank of Hungary (NBH) said on Wednesday it has withdrawn the licence of Sberbank's unit after the European Central Bank ordered the closure of its parent.

On Monday, the NBH ordered two bank holidays at the Hungarian Sberbank unit over concerns about its parent's finances, then capped fund withdrawals at 7 million forints ($20,691) per client.

However, on Wednesday it said in a statement those measures were insufficient to shore up the bank's finances and the unit would have to be wound down. Client deposits worth up to 100,000 euros will be refunded by the National Deposit Insurance Fund, it said.