Raiffeisen Scales Down More Than 20% to Avoid Cash Call - Bloomberg Business

Raiffeisen Scales Down More Than 20% to Avoid Cash Call - Bloomberg Business:



"Raiffeisen Bank International AG, eastern Europe’s second-biggest bank, will shrink by at least 20 percent to boost capital ratios and avoid a cash call that could dilute the cooperative banks that own it.



Raiffeisen, the foreign bank with the most at risk in Russia, will cut its risk-weighted assets from 79.4 billion euros ($89.6 billion) as of the end of September, the Vienna-based company said yesterday in a statement. The asset reduction will raise its core equity Tier 1 ratio, which stood at about 10 percent at the end of last year, it said.



“RBI will actively embark on a course which concentrates on strategically relevant and sustainably profitable business areas,” the bank said in the statement. “RBI comfortably fulfills all regulatory capital requirements. The Management Board of RBI emphasizes that no capital increase is planned.”"



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