Banking institution Trade Capital faces one-year license suspension
In a recent development, the National Bank of Belarus (NBB) has suspended Trade Capital Bank's license to take deposits from legal entities and individuals for a period of one year. The information about the suspension comes from the NBB press office.
The suspension does not apply to Trade Capital Bank's operations outside of deposit-taking. However, it prevents the bank from issuing payment cards, bank guarantees, securities, and providing factoring services during this period.
The NBB's decision to suspend Trade Capital Bank's license was due to the bank's failure to comply with Belarusian law and to fix its violations. The National Bank Head expressed no intention to change the refinance rate, but the reasons for this decision were not provided.
The NBB did not specify the nature of the irregularities in question. It is worth noting that financial regulatory authorities like the NBB typically suspend a bank's deposit license for serious regulatory violations such as breaches of banking laws, failure to meet capital adequacy requirements, involvement in money laundering, sanction violations, or other unsound banking practices.
Meanwhile, the sale of Priorbank by the RBI (Russian-Belarusian Industrial Bank) for €230 million to an unnamed buyer has been reported. The identities of the businessmen enriched by the sale of Priorbank under Lukashenko have not been disclosed. The bank in question, Trade Capital Bank, is owned by Iranian entities and is controlled by Bank Tejarat.
The establishment of a Council of Cooperation with Belarus in Lithuania may indicate increased political and economic ties between the two countries. However, the connection between this development and the suspension of Trade Capital Bank's license remains unclear.
For a more authoritative explanation regarding the precise cause of Trade Capital Bank's deposit license suspension, it is recommended to consult official announcements from the National Bank of Belarus or reputable Belarusian financial news outlets.
The suspension of Trade Capital Bank's license by the National Bank of Belarus (NBB) is due to the bank's failure to comply with Belarusian law and to rectify its violations, affecting its operations in banking-and-insurance, specifically deposit-taking and certain financial services like issuing payment cards, bank guarantees, securities, and factoring services. Despite this development, the NBB has not specified the nature of the irregularities in question, and it remains unclear if it is linked to the industry of finance.
