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ECB fines Russia's Sberbank over risk exposure

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"The European Central Bank has imposed an administrative penalty... in respect of breaches of the large exposure requirement," the Frankfurt institution said in a statement published shortly after markets closed on the continent.

[FRANKFURT AM MAIN] The EU's top banking supervisor said Monday it had fined Russian lender Sperbank's European arm 630,000 euros (S$966,000) for breaching limits on risk exposure.

"The European Central Bank has imposed an administrative penalty... in respect of breaches of the large exposure requirement," the Frankfurt institution said in a statement published shortly after markets closed on the continent.

Sberbank Europe AG, an Austrian subsidiary of Russia's largest consumer bank, had breached a rule limiting maximum risk linked to one client or group of clients to 25 per cent of a lender's capital, the ECB said.

The Russian bank has two months to appeal the decision, the supervisor added.

sentifi.com

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The ECB has only recently begun to swing the stick of fines against the major financial institutions it has supervised since 2014 and a post-crisis overhaul of EU banking rules, beginning with an 11.2 million euro punishment for Italy's Banco Popolare di Vicenza in 2017.

AFP