Banks, Financial Services, Latvia, Russia

FCMC spokeswoman Laima Auza explained that Russia's M2M Private Bank, which belongs to ATB (Aziatsko-Tihookeanskiy Bank), has run into financial trouble. Although one of the shareholders in the Latvian-based bank with a similar name, Bank M2M Europe, indirectly owns shares also in M2M Private Bank, the FCMC notes that Bank M2M Europe is a legally autonomous entity, which operates in Latvia and meets Latvia's regulatory requirements. The FCMC therefore does not expect the situation with the Russian bank to seriously affect the operations of the bank in Latvia.

According to the data of the Association of Latvian Commercial Banks, Bank M2M Europe was the 17th biggest bank in Latvia by assets at the end of June.

Russia's ATB bank, the sole owner of M2M Private Bank, which caters to wealthy clients, has said that it has been working with the Russian central bank on a plan to stabilize M2M Private Bank, which on November 10 suspended all payments and earlier failed to carry out repo transactions.

ATB described M2M Private Bank's issues as temporary, blaming them of brief liquidity shortages. The bank also said in the statement that M2M Private Bank's operations might be back to normal by the end of this week.