Raiffeisen's Russian unit pauses brokerage account openings under ECB pressure
MOSCOW, Aug 5 (Reuters) -The Russian subsidiary of Austria's Raiffeisen Bank International RBIV.VI said on Monday it had temporarily suspended the opening of new brokerage accounts as European regulators demand the group reduce its Russia exposure.
The European Central Bank has told euro zone banks still operating in Russia to cut their ties. ECB Banking Supervision has asked all banks with significant exposure to Russia to speed up their de-risking efforts by setting a clear roadmap for downsizing and exiting the Russian market.
"Due to the ECB's directive to RBI Group, Raiffeisen Bank is forced to reduce the volume of operations on the Russian market," Raiffeisen Bank in Russia said.
"At this stage, we decided to temporarily suspend the opening of new brokerage accounts from July 26, 2024, for retail investors."
The bank said existing accounts would be serviced as usual.
RBI said in April that it would be required by the ECB to further decrease its business in Russia by cutting back on loans to customers and paring back international payments from Russia by 2026.
Euro zone banks have more than halved their exposure to Russia since Moscow sent its troops into Ukraine in 2022. Raiffeisen has faced particular criticism as its Russian profits have soared, with Washington even warning RBI that access to the U.S. financial system could be curbed because of its Russia dealings.
Reporting by Reuters; Writing by Alexander Marrow
Editing by Gareth Jones
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
