SB Bank, a midsize bank in Russia, has declared on its website that its clients would not be able to withdraw cash without giving reasons.
This is believed to be the result of the mounting pressure on the country’s banking system following the Western sanctions over the Ukraine issue.
Russian banks have been facing challenges as a result of the drop in value of rubble by 50% against the US dollar. Its economy is on the brink of recession, reports The Wall Street Journal.
Although the government has been making efforts to boost the banking sector, including bailing out a few lenders, its measures do not seem to be enough.
Since December, Russian banks have seen an increase of withdrawals as the value of rubble has fallen to a record low.
Established in 1994, SB Bank had assets worth $1.03bn as of 30 June 2014 and has branches across major cities in the country including St. Petersburg, Samara, etc.
In terms of assets, it is the 80th largest bank in Russia.