Andrea Enria, chairperson of the European Banking Authority, speaks at Reuters Summit interview in London, Britain, Sept. 25, 2017. REUTERS/Afolabi Sotunde/File photo
The European Central Bank is calling on lenders to expedite their withdrawal from Russia due to the increased reputational, legal, and financial risks associated with conducting business in the country, announced supervisory chief Andrea Enria on Tuesday.
While Europe’s top supervisor has persistently expressed its hope that European financial institutions would sever ties with their Russian assets, the issue has become more significant after the recent 24-hour uprising by the Wagner militia, highlighting the political instability of the country.
In a letter to members of the European Parliament, Enria stated that his unit has “urged these banks to speed up their downsizing and exit strategies by adopting clear roadmaps and by regularly reporting to their management bodies and to ECB Banking Supervision on the execution of these plans”.
Austria’s Raiffeisen Bank International, one of the euro zone banks with significant relationships in Russia, has been intensifying efforts to transfer its Russian division to shareholders amid mounting pressure to do so, as reported by Reuters last month. CEO Johann Strobl has assured that he is working vigorously towards a resolution.
In a recent report on the European banks most exposed to Russia in light of the weekend’s events, JPMorgan also identified Hungary’s OTP Group and Italy’s UniCredit as having relatively large Russian operations among European banks.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
