Privatbank, the Ukraine’s largest retail bank by assets, has announced it is suspending credit cards along with all other credit lines issued to private and corporate customers.

It has also stopped accepting debit cards from other banks in the Crimean region.

These measures have come with the announcement that Privatbank has placed temporary limits on cash withdrawals for account holders and will not be issuing any new loans.

The new withdrawal limits are UAH1,000 ($103) a day.

In a statement the bank said this move was in order to stop political activists "destabilising" the situation in the country. It is unclear which political group the lender was referring to.

"A temporary limit on withdrawals is needed to stop the forces that are working to destabilise the situation and are using the cash for their sabotage," the bank said.

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"Amid geopolitical instability and numerous provocations in some regions of Ukraine, organized by foreign forces, the introduced measures will ensure that all customers regardless of their financial standing will get access to their money," said Privatbank’s deputy chairman Oleg Gotohovsky.

Privatbank is the first major Ukrainian bank to limit domestic withdrawals in response to the continuing political tension in the country.

The National Bank of Ukraine has already introduces a $1,500 limit on foreign currency withdrawal but hasn’t limited withdrawals of local currency. It has promised to meet customer needs for liquidity.

Privatbank insists that the move is a "rational" response to the current situation, having designed them to help customers and protect the national currency.