Latvian Bank Trasta Komercbanka Ceases Operations Following License Revocation
Trasta Komercbanka, a Latvian bank established in 1989, underwent a formal insolvency process beginning in March 2017 after losing its operating license in March 2016. The bank, previously known as Riga Bank, faced challenges related to sustained losses and an unsustainable business model, according to reports from the European Central Bank and the Latvian Financial and Capital Market Commission (FKTK).
The bank’s largest shareholders include Igors Buimisters, holding between 33% and 50% of the shares, and Ivans Fursins, with an indirect stake of 20% to 33%, according to Wikipedia. The decision to revoke the license and initiate bankruptcy proceedings reflects increased scrutiny of financial institutions within the region.
Originally founded as Riga Bank in 1989, the institution was reorganized as a joint-stock company and registered with the Enterprise Register on September 27, 1991, receiving its license from the Bank of Latvia on December 12 of the same year. Throughout the 1990s and early 2000s, Trasta Komercbanka expanded its operations, becoming a member of the Commercial Banks Association in 1992 and the Riga Stock Exchange in 1997.
The bank established representative offices in Belarus (2002), Ukraine and Russia (2003), Kazakhstan and Canada (2004), and Bulgaria (2007), and opened its first branch in Cyprus in 2006. Subsidiaries TKB Real Estate and TKB Leasing were created in 2005. Trasta Komercbanka also became a member of the Latvian Chamber of Commerce and Industry in 2013.
Recent updates from the bank’s website indicate changes to the legal and actual addresses of both Trasta Komercbanka and its subsidiary, TKB Leasing, as of June 19, 2020. The bank announced the closure of its electronic systems and server following a ruling by the Vidzeme District Court of Riga on March 10, 2017. The administrator of Trasta Komercbanka has also been conducting price surveys for the sale of movable and immovable property as part of the insolvency process.
The bank’s internet banking platform, Trast.Net, was also discontinued following the court ruling. Bank profile information details the bank’s specialization in universal banking.
