ZAO Raiffeisenbank, the Russian subsidiary of Austria's Raiffeisen International Bank-Holding AG (a member of RZB Group), has signed a special agreement with the Central Bank of Russia, whereby the Central Bank will underwrite inter-bank loans issued by Raiffeisenbank by providing partial compensation for any losses incurred by the bank in Russia's inter-bank loan market. Raiffeisenbank was one of the first three major banks in Russia to sign such an agreement with the Central Bank.
The Central Bank's initiative is directed at supporting and strengthening the Russian Federation's financial system by providing guarantees to large banks that are fundamental to the system to cover their activity on the inter-bank loans market. The agreement entails the placement of a compensatory deposit by the Central Bank with Raiffeisenbank, in case borrowing banks are unable to meet their commitments on time or at all. Raiffeisenbank is entitled to claim funds from the deposit should a borrowing bank's license be revoked.
«We firmly believe in the huge potential of the Russian market and welcome the swift and efficient measures which the Central Bank of Russia and the Russian Government have taken to support the country's financial system», said Herbert Stepic, CEO of Raiffeisen International. «The agreement with the Central Bank of Russia marks yet another important step towards ensuring the stability of the inter-bank market. We feel very much honoured that Raiffeisenbank was selected for a key role in this strategically important process», he added.
ZAO Raiffeisenbank is a subsidiary of Raiffeisen International. Raiffeisenbank is the largest foreign-owned bank in Russia, ranking 8th in terms of assets among top Russian banks based on 3Q 2008 results (Interfax-CEA). According to Interfax-CEA, Raiffeisenbank ranked 4th in Russia in terms of private deposits and 6th in consumer lending in Russia based on 3Q 2008 results.
On 24th September, Raiffeisenbank completed the placing of its additional share issue with a total nominal value of 14.8 billion rubles. The registered capital of the bank increased by 68% and is now at 36.7 billion rubles. The net profit of Raiffeisenbank according to the results of the third quarter of 2008 was 8.5 billion rubles (according to the RAS).
Raiffeisen International operates one of the largest banking networks in CEE. 17 markets in Europe’s growth region are covered by subsidiary banks, leasing companies and a range of other financial service providers. 14.6 million customers are serviced in more than 3,100 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Osterreich AG (RZB), which owns more than two-thirds of the common stock. The remainder is in free float, the shares are listed on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country’s largest banking group.