The Central Bank of the Russian Federation revoked the license of Russia's Sakha Republic-based JSC Taatta Bank and placed the lender into provisional administration until the appointment of a receiver or a liquidator.

The regulator pointed to Taatta's risky business model, which resulted in the buildup of low quality assets on the lender's balance sheet. Taatta Bank was also involved in transactions and deals intended to artificially sustain its capital levels to create the impression that it formally complies with prudential regulations, the central bank said July 5, adding that it already notified local enforcement authorities twice about these operations.

In addition, shortly before the license revocation the lender's owners and management engaged into activities aimed at withdrawing assets from the lender, causing damage to creditors and deposit holders. The regulator will also notify law enforcement agencies about these transactions.

Ranked 220th by assets in the Russian banking system, Taatta was not a significant banking sector player in the Sakha Republic, the central bank said. Vedomosti noted that the lender was under U.S. sanctions for its involvement in Russia-annexed Crimea and sanctions-hit projects.