27.06.2023, 20:58
In Europe, banks urged to accelerate the withdrawal from Russia
Source: OREANDA-NEWS
OREANDA-NEWS European banks reduced their presence on the Russian market by 37 percent in 2022, but this is not enough, according to the European Central Bank (ECB). The regulator calls on credit institutions to accelerate the withdrawal from the country. This is reported in a letter by the head of the Supervisory Board of the ECB Andrea Enria, writes Bloomberg.
Enria said that the regulator requires banks to prepare a clear action plan for exiting the Russian business and regularly report on the work done. "I have repeatedly and publicly expressed concern about the disappointingly little progress made by banks in reducing the risks arising from ongoing operations in the Russian market," he complained.
In the first quarter of 2023, the capital of European banks in the amount of 45 billion euros was at risk in Russia. The main share in this amount belongs to the Austrian Raiffeisen Bank International (RBI) — more than 20 billion euros.
According to the Financial Times, the Russian economy is seriously dependent on the RBI in the payment sector. The organization's subsidiary, Raiffeisenbank, handles 40-50 percent of the country's payments with other countries.
Against the background of sanctions against Russia, the exit of Western banks from the Russian market is difficult due to a number of factors. According to the current Russian legislation, bank owners from "unfriendly" countries cannot make transactions for the sale of assets in the country without the approval of the president.
Enria said that the regulator requires banks to prepare a clear action plan for exiting the Russian business and regularly report on the work done. "I have repeatedly and publicly expressed concern about the disappointingly little progress made by banks in reducing the risks arising from ongoing operations in the Russian market," he complained.
In the first quarter of 2023, the capital of European banks in the amount of 45 billion euros was at risk in Russia. The main share in this amount belongs to the Austrian Raiffeisen Bank International (RBI) — more than 20 billion euros.
According to the Financial Times, the Russian economy is seriously dependent on the RBI in the payment sector. The organization's subsidiary, Raiffeisenbank, handles 40-50 percent of the country's payments with other countries.
Against the background of sanctions against Russia, the exit of Western banks from the Russian market is difficult due to a number of factors. According to the current Russian legislation, bank owners from "unfriendly" countries cannot make transactions for the sale of assets in the country without the approval of the president.
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