The Financial and Capital Markets Commission (FKTK) said that it agreed with the bank's liquidators that a declaration of bankruptcy was in order, a year after it pulled Trasta's license and started liquidation proceedings.
Administrators had found that Trasta's assets of €73m were considerably smaller than its liabilities of €124.
During the bank's liquidation process funds worth €111.9 million had been recovered and depositors paid a otal of €54.5 million from the bank's own resooures without having to fall back on the Deposit Guarantee Fund.
Trasta's fall from grace came after it was named in a several major money-laundering scandals including the notorious Magnitsky case.
Its licence was withdrawn by FKTK and the European Central Bank on March 3, 2016 "in view of the fact that the Bank had been committing serious and sustained breaches of regulatory requirements in several areas for a long period."
"In particular, the Bank has been failing to comply with the regulatory capital requirements, while the Bank’s shareholders have not been able to address this non-compliance by increasing the Bank's capital, thereby violating provisions of the Regulation (EU) No 575/2013 and of the Latvian Credit Institutions Law. Moreover, the FKTK ascertained that the Bank has been operating with losses for a long period and has no viable business model or development strategy adequate to the situation. In addition, serious and sustained breaches of the anti-money laundering and counter-terrorist financing regulations were identified in the Bank's activities," a statement at the time said.
