A banking crisis is quietly brewing in Russia. Starting with second-tier institutions banks have been hit by liquidity problems.

Tough regulatory oversight by the Russian central bank has put the squeeze on larger banks lending to their smaller brethren.

Larger banks however are beginning to feel the squeeze. Guta Bank, one of Russia's largest has shut its Moscow and St. Petersburg branches. ATM machines have been temporarily taken off line.

Guta is seen as a high profile bank with solid industrial clients. Any failure could have severe ramifications for the systemic health of the banking system.