VTB Direktbank: Wind-down of business relations

Direktbank proceeds with wind-down of contracts with savers and repayment of deposits.


In the coming weeks and months, VTB Direktbank in Frankfurt will successively and in several tranches terminate existing contracts with savers and repay their deposits, including all interest accruing until payment. The background to this measure is the special situation of the bank and the liquidation resolution therefore adopted by the Annual General Meeting of VTB Bank (Europe) SE i.L. on March 24, 2023.

VTB Direktbank is a branch of VTB Bank (Europe) SE i.L. and therefore directly affected by its liquidation process. The special situation of the bank also leads in certain cases to extraordinary terminations for contracts still in force for good cause. Already since February 2022, since the invasion of the Russian army in Ukraine, VTB Direktbank has not been allowed to accept any new deposits. Similarly VTB Bank (Europe) SE i.L. can no longer grant any loans due to a ban by the German financial supervisory authority. It has effectively been in liquidation since then and formally since April 1.

“We very much regret that we have to resort to such a measure,” says Hans-Georg Herrmann, Chief Operating Officer at VTB Bank (Europe) SE i.L., “but we hope for the understanding of our customers for the special situation the bank is in as a result of the sanctions against Russia and against the parent company of our bank. Continuation of normal banking and deposit operations is impossible for VTB Direktbank under these conditions. Through our actions, we ensure that our customers receive their deposits promptly and safely and can use them for reinvestment with other institutions.”

In the current market situation, the savings balances that are released can generally be reinvested at better conditions. VTB Direktbank has not increased interest rates since February 2022. It will also not increase interest rates because of the restrictions imposed on it and because of the wind-down process.

For affected customers there is – until they receive a termination letter within the next weeks and months – no need for action. They are asked however at the latest at this point of time to check whether the data of the reference account indicated with VTB direct bank with the respective house bank are still current. VTB Direktbank will transfer the credit balance and interest due to this account after the termination and thus terminate the business relationship.