The Russian Central Bank on Sunday told banks not to publish their financial statements any more because of Western sanctions following the invasion of Ukraine, which threaten to decimate the banking sector and people’s savings.
Some of Russia’s largest banks have been cut off from the Swift international interbank system, limiting their overseas transaction capabilities. The Russian currency collapsed and restrictions on the purchase of currencies were imposed to support the ruble.
“The Bank of Russia has taken the decision to temporarily limit the volume of publication of balance sheets by credit organizations on their sites and that of the Bank of Russia“, said the latter. “This is to limit the risks for credit organizations due to sanctions from Western countries“, she added.
These institutions will still have to send their balance sheets to the central bank, but they will no longer be made public.
The Russian authorities are stepping up all-out measures to curb capital flight and prevent a panic that might seize the population if the banks were to run out of liquidity.
Russians have withdrawn their savings from their bank accounts in large numbers, as evidenced by the queues at the beginning of the week in banks and at ATMs, in this country accustomed to economic and financial crises.
