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Banks In Russia's Tatarstan Limit Client Services Over Tatfondbank Crisis

Tatarstan's Tatfondbank

Banks in Russia's Tatarstan region have limited cash services for their clients as one of the leading banks in Russia's Volga region, Tatfondbank, tries to avoid insolvency.

Altynbank announced on December 14 that it introduced limitations for its clients' financial activities via plastic payment cards. The announcement came a day after another local financial institution, Intekhbank, introduced a 50,000-ruble limit ($817) for cash withdrawals from its ATM machines.

Both banks said the limitations are linked to problems faced by Tatfondbank.

Tatarstan's second-largest bank, Tatfondbank, announced on December 14 that it has suspended cash services for its clients from December 14-17.

Bank officials there said they are in talks with Tatarstan's government on ways to revive the financial institution's stability.

On December 7, Tatarstan's government started talks with the Bank of Russia on the stabilization of Tatfondbank.

Earlier this week, Tatfondbank introduced limitations on daily cash withdrawals and shortened working days for its employees.

Established in 1994 in Kazan, the government-controlled Tatfondbank is one of three leading banks in Russia's Volga region.

Based on reporting by TASS, Kommersant, and Interfax