American and European regulators are demanding that parent Raiffeisen Bank International (RBI) divest its Russian business, which accounts for nearly half of the group’s total business.
Raiffeisenbank, one of the largest Western banks operating in Russia, continues to reduce its business under pressure from European regulators. In particular, the bank is likely to withdraw its brokerage business from the country. The Moscow Times writes about it on Thursday, August 8.
Since July 26, he stopped opening new brokerage accounts, and now warns clients that from August 9 he will sharply increase the commission for the purchase of securities – up to 1.9% of the transaction value. The special conditions previously in force have been cancelled.
For most Russian brokers, the commission is usually calculated in hundreds of percent, more often in tenths. A similar commission of 1.9% is valid at Raiffeisenbank for the purchase of “toxic” currencies, but at that time it was the main bank making cross-border transfers: the bank estimated its share in the market at 40-50%.
There is no such dominance regarding trading in Russian securities. But there is pressure from European and American regulators demanding that parent Raiffeisen Bank International (RBI) divest its Russian business, which accounts for about half of the group’s total business. This could not be done: the sale required Putin’s permission, so the bank gradually liquidated the business. He stopped opening accounts for new clients, accepting deposits, and now, apparently, it has reached the brokerage business.
As we wrote earlier, Austrian Raiffeisen Bank International will continue to reduce its large and profitable business in Russia under an agreement with the European Central Bank.
As is known, Raiffeisen has already said that it plans to start exiting the Russian market in the summer.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.