The European Central Bank has suspended the operation of Latvia’s 6th largest bank PNB Banka with EUR €550million in assets. The news merely days after the ECB carried out surpruse on-site visits to the lender’s Frankfurt branch.
The ECB assessed that PNB Banka was largely failing or likely to fail the Single Resolution Mechanism Regulation standard, as well as discovering that the lenders assets were less than its liabilities in a statement released online.
The ECB took over direct supervision of the bank a few months earlier in April, at the appeal of the Latvian Financial Capital and Markets Commission after in light of the ongoing controversy between PNB Bank as well as the central bank.
The bank’s former key shareholder Grigoriy Guselnikov, who has dual Russian and UK nationality, attempted to avert the blame onto Central Bank Governor Ilmārs Rimšēvičs, by accusing him of trying to extract funds from him in return for opening and maintaining a bank account in Latvia.