The Bank of Russia has officially revoked the license of PromTransBank, the only bank operating in Bashkortostan, effective April 15, 2025. This decision, announced by the Central Bank, comes as a response to the bank's chronic unprofitability and numerous violations of banking regulations.
PromTransBank, which ranked 177th among Russian banks in terms of assets, was found to have engaged in suspicious activities that facilitated the withdrawal of funds into the shadow economy. The Central Bank highlighted that the institution had been serving clients involved in significant volumes of questionable transactions.
In a statement released by the Central Bank, it was noted that the decision was made due to violations of federal banking laws, regulatory acts, and requirements concerning anti-money laundering and the financing of terrorism. The bank's license for securities management was also annulled.
Depositors at PromTransBank will be relieved to know that their funds are insured. According to the Deposit Insurance Agency (DIA), which will oversee the payouts, all deposits will be reimbursed at a rate of 100% of the remaining balance, up to a limit of 1.4 million rubles per individual, including accrued interest. The agency is expected to commence payments no later than April 29, 2025.
PromTransBank had been under scrutiny for a considerable period, with the Central Bank applying various measures to address its ongoing violations. Despite these interventions, the bank continued to engage in practices that raised red flags. The Central Bank's press service indicated that the financial condition of PromTransBank had deteriorated to a point where further support from its owners was deemed impossible.
According to the press release, "The bank had been making large long-term investments, but the returns were insufficient to cover the expenses associated with attracting funds, leading to a persistent negative impact on its equity." This chronic loss-making situation ultimately prompted the Central Bank to take decisive action.
PromTransBank was registered in Ufa in 2001. The last known manager of the bank was Regina Efimova, and the largest shareholders included the Moscow-based LLC Promfintrans, which held 61.65% of the bank, and Ildar Mukhametdinov, who owned 35.37%.
In light of the recent developments, the Central Bank has indicated a commitment to maintaining the integrity of the banking system by enforcing compliance with regulatory standards. The revocation of PromTransBank's license serves as a reminder of the ongoing efforts to combat financial malpractice within the sector.
As the banking landscape continues to evolve, the Central Bank remains vigilant in its oversight, ensuring that institutions adhere to the laws designed to protect the economy and consumers alike. The actions taken against PromTransBank are part of a broader strategy to reinforce the stability of the financial system and restore public confidence.
In conclusion, the revocation of PromTransBank's license underscores the importance of regulatory compliance in the banking sector. As the Deposit Insurance Agency prepares to facilitate the return of funds to depositors, the focus will now shift to ensuring that such violations do not recur in the future.
