Raiffeisen
Encyclopedia
Raiffeisen Zentralbank is a co-operative bank
based and founded in Austria
and operating throughout central and eastern Europe
. The bank has been led by Walter Rothensteiner since 2003.
" is a reference to Friedrich Wilhelm Raiffeisen
, the founder of the co-operative movement of credit union
s.
In the year 2006, the RZB Group posted the following results:
Raiffeisen had the equivalent of 55,400 full-time employees distributed in ca. 2,850 outlets, serving over 11.7 million clients.
cross, a protection symbol that was attached to a house's roof to protect its inhabitants from all kinds of dangers. The logo was chosen to represent the bank because the members guard themselves against economical risks through the co-operative.
), which in turn are owned by some 550 local Raiffeisenbanks. It is one of the largest banking groups in the country.
There are interlinks between the Raiffeisen financial group and the Raiffeisen rural cooperatives (cooperatives of farmers for agricultural and related products). Raiffeisen members have considerable interests in the Austrian economy (construction, media, insurance etc.)
There are no significant ownership interlinks to Raiffeisen organisations in countries such as Germany
or Switzerland
, only to those in the east (see Raiffeisen International below).
RZB has subsidiaries in many Central and Eastern European countries, namely Albania
, Belarus
, Bosnia and Herzegovina
, Bulgaria
, Croatia
, Czech Republic
, Hungary
, Kosovo
, Moldova
, Poland
, Romania
, Russia
, Serbia
, Slovakia
, Slovenia
and Ukraine
. The shares of these so-called network banks are held by RZB's subsidiary Raiffeisen International Bank-Holding AG which is listed on the Vienna Stock Exchange.
Raiffeisen bank has been more successful in Balkan countries mostly, such as in Serbia
, Albania
, etc. Raiffeisen
bank is one of the biggest banks operating.
For more information on particular Raiffeisen branches, see:
There are many independent Raiffeisen co-operative organizations in other countries, most of these specialising in agribusiness
or banking.
.
When Moldovan journalist Natalia Morar
investigated money flows involving Raiffeisen Zentralbank, she says she received a death threat from the FSB and she was banned from Russia.
Gazprom spokesman has said that Raiffeisen Investment AG is a Gazprom partner in RosUkrEnergo
, an opaque Ukrainian company. On 6 August 2004 Interfax reported "100 percent subsidiaries of Russia's Gazprombank and Austria's Raiffeisen Bank created the RosUkrEnergoprom company for the supply of Turkmen gas to the Ukrainian market. The company, shared by the parties 50-50, will be registered in Switzerland."
However, Raiffeisen Investment has said that it only manages RosUkrEnergo for unknown "Ukrainian businessmen".
According to documents uncovered during the United States diplomatic cables leak
US-diplomats suspected Raiffeisen Investment was "a front to provide legitimacy to the gas company that we suspect he [U.S.-indicted Russian crime boss Semyon Mogilevich] controls".
One of the cases involved Russian bank called "Diskont". To illustrate the scale of money laundering, $1.6 billion was transferred from Diskont Bank's accounts to Raiffeisen on August 29, 2006. According to New York Times, Diskont received a 10% commission from the money transfers. In September 2006, the deputy chairman of the Central bank of Russia, Andrey Kozlov, revoked Diskont's license. Just days later Kozlov was murdered.
The bank has been also suspected of laundering money for the Italian mafia.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
based and founded in Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
and operating throughout central and eastern Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. The bank has been led by Walter Rothensteiner since 2003.
Overview
The term "RaiffeisenRaiffeisen
Raiffeisen Zentralbank is a co-operative bank based and founded in Austria and operating throughout central and eastern Europe. The bank has been led by Walter Rothensteiner since 2003.-Overview:...
" is a reference to Friedrich Wilhelm Raiffeisen
Friedrich Wilhelm Raiffeisen
Friedrich Wilhelm Raiffeisen was a German mayor and cooperative pioneer. Several credit union systems and cooperative banks have been named after Raiffeisen, who pioneered rural credit unions.- Life :...
, the founder of the co-operative movement of credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
s.
In the year 2006, the RZB Group posted the following results:
- total assets at ca. €EuroThe euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
110 billion (up 17% from 2005) - before-tax profit ca. €EuroThe euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
1,8 billion, and after tax at 1,6 billion (up 90% and 130% resp.) - consolidated profit €EuroThe euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
1,15 billion (up 55%), return on equityReturn on equityReturn on equity measures the rate of return on the ownership interest of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity . ROE shows how well a company uses investment funds to generate earnings growth...
before taxation 38% (up >1 PP)
Raiffeisen had the equivalent of 55,400 full-time employees distributed in ca. 2,850 outlets, serving over 11.7 million clients.
Logo
The Raiffeisen Bank logo represents a traditional Germanic gableGable
A gable is the generally triangular portion of a wall between the edges of a sloping roof. The shape of the gable and how it is detailed depends on the structural system being used and aesthetic concerns. Thus the type of roof enclosing the volume dictates the shape of the gable...
cross, a protection symbol that was attached to a house's roof to protect its inhabitants from all kinds of dangers. The logo was chosen to represent the bank because the members guard themselves against economical risks through the co-operative.
Austria
Raiffeisen Zentralbank Österreich AG (RZB), established in 1927, is the central institution of the cooperative banking group. The owners of the Zentralbank are 8 regional banks (named RaiffeisenlandesbankRaiffeisenlandesbank
Raiffeisenlandesbank is the umbrella term for a number of Austrian Landesbanken. Each state has their own Raiffeisenlandesbank, with only Vienna and Lower Austria sharing one. In Carinthia exists a second Landesbank, the "Zveka Bank", serving the Slovene minority. The Raiffeisenlandesbanks are...
), which in turn are owned by some 550 local Raiffeisenbanks. It is one of the largest banking groups in the country.
There are interlinks between the Raiffeisen financial group and the Raiffeisen rural cooperatives (cooperatives of farmers for agricultural and related products). Raiffeisen members have considerable interests in the Austrian economy (construction, media, insurance etc.)
There are no significant ownership interlinks to Raiffeisen organisations in countries such as Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
or Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, only to those in the east (see Raiffeisen International below).
International
Raiffeisen Bank International AG , mostly owned by RZB (whose share is 70%), is the company which operates banking subsidiaries in 15 countries of central and eastern Europe.Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
, Belarus
Belarus
Belarus , officially the Republic of Belarus, is a landlocked country in Eastern Europe, bordered clockwise by Russia to the northeast, Ukraine to the south, Poland to the west, and Lithuania and Latvia to the northwest. Its capital is Minsk; other major cities include Brest, Grodno , Gomel ,...
, Bosnia and Herzegovina
Bosnia and Herzegovina
Bosnia and Herzegovina , sometimes called Bosnia-Herzegovina or simply Bosnia, is a country in Southern Europe, on the Balkan Peninsula. Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the southeast, Bosnia and Herzegovina is almost landlocked, except for the...
, Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
, Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, Kosovo
Kosovo
Kosovo is a region in southeastern Europe. Part of the Ottoman Empire for more than five centuries, later the Autonomous Province of Kosovo and Metohija within Serbia...
, Moldova
Moldova
Moldova , officially the Republic of Moldova is a landlocked state in Eastern Europe, located between Romania to the West and Ukraine to the North, East and South. It declared itself an independent state with the same boundaries as the preceding Moldavian Soviet Socialist Republic in 1991, as part...
, Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
, Slovakia
Slovakia
The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...
, Slovenia
Slovenia
Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...
and Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
. The shares of these so-called network banks are held by RZB's subsidiary Raiffeisen International Bank-Holding AG which is listed on the Vienna Stock Exchange.
Raiffeisen bank has been more successful in Balkan countries mostly, such as in Serbia
Serbia
Serbia , officially the Republic of Serbia , is a landlocked country located at the crossroads of Central and Southeast Europe, covering the southern part of the Carpathian basin and the central part of the Balkans...
, Albania
Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...
, etc. Raiffeisen
Raiffeisen
Raiffeisen Zentralbank is a co-operative bank based and founded in Austria and operating throughout central and eastern Europe. The bank has been led by Walter Rothensteiner since 2003.-Overview:...
bank is one of the biggest banks operating.
For more information on particular Raiffeisen branches, see:
- in Albania, see Raiffeisen AlbaniaRaiffeisen AlbaniaThe Raiffeisen Bank is currently the largest bank in Albania, with more than 60% of all retail deposits and the largest branch network.-Background:...
- in Bulgaria, see Raiffeisen BulgariaRaiffeisen BulgariaRaiffeisenbank EAD was established in June 1994 under the Bulgarian Law on Banking and Credit Activities and has a full banking licence for domestic and international banking activities. Raiffeisen Zentralbank Oesterreich AG , Vienna through Raiffeisen International Bank-Holding AG , owns 100 % of...
- in Croatia, see Raiffeisenbank Austria
- in the Czech Republic, see Raiffeisenbank, a.s.
- in Romania, see Raiffeisen RomaniaRaiffeisen RomaniaRaiffeisen Bank is a top universal bank on the Romanian market, providing a complete range of products and services to private individuals, SMEs and large corporations via multiple distribution channels: banking outlets , ATM and EPOS networks, phone-banking and mobile-banking .Raiffeisen Bank...
- in Russia, see ZAO RaiffeisenbankRaiffeisenbank (Russia)ZAO Raiffeisenbank is a bank in Russia. It is a subsidiary of Raiffeisen Bank International, which in turn is a fully controlled subsidiary of Raiffeisen Zentralbank...
- in Serbia, see Raiffeisenbank BeogradRaiffeisenbank BeogradRaiffeisenbank Beograd is the Serbian arm of Austria-based Raiffeisen Zentralbank Österreich AG , member of Raiffeisen Banking Group....
- in Slovakia, see Tatra bankaTatra bankaTatra banka is a commercial bank in Slovakia. It was founded in 1990 as the first private bank in Slovakia. It took the name of the former bank, established in 1885, but not its assets. It started financial operations in December 1991....
- in Kosovo, see Raiffeisen Bank Kosovo http://www.raiffeisen-kosovo.com/
- in Ukraine, see Raiffeisen Bank Aval http://www.aval.ua/
There are many independent Raiffeisen co-operative organizations in other countries, most of these specialising in agribusiness
Agribusiness
In agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales....
or banking.
RZB/RI Merger
In February 2010 the management of RZB and its exchange-listed subsidiary Raiffeisen International (RI) announced that they are considering a merger of the two companies as a strategic option. This would grant RZB access to equity markets and bring RZB's business with Austrian and international corporate customers together with those of RI in Central and Eastern Europe. According to the heads of both banks, a merger would strengthen operations and was not being considered out of financial necessity. The new bank shall be called Raiffeisen Bank International AG, operate under an Austrian banking license and continue to be listed on the Vienna Stock ExchangeWiener Börse
The Wiener Börse AG is the only stock exchange in Vienna, Austria, and one of the most established exchanges in Eastern- and Southeastern Europe.-History:...
.
Russian money laundering
A number of investigators have suggested that Raiffeisen Zentralbank is involved in laundering Russian money.When Moldovan journalist Natalia Morar
Natalia Morar
Natalia Morari is a Moldovan investigative journalist for the Russian magazine New Times. She was a permanent resident of Russia until she was expelled in December 2007, presumably for exposing corruption in Russia. Born in Moldova, she moved to Russia in 2002 to study sociology at the Moscow...
investigated money flows involving Raiffeisen Zentralbank, she says she received a death threat from the FSB and she was banned from Russia.
Gazprom spokesman has said that Raiffeisen Investment AG is a Gazprom partner in RosUkrEnergo
RosUkrEnergo
RosUkrEnergo is a Swiss-registered venture company that transports natural gas from Turkmenistan to East European countries. 50% of the company is owned by Gazprom, through its daughter Swiss-registered Rosgas Holding A.G., and another 50% by Swiss-registered private company Centragas Holding A.G.,...
, an opaque Ukrainian company. On 6 August 2004 Interfax reported "100 percent subsidiaries of Russia's Gazprombank and Austria's Raiffeisen Bank created the RosUkrEnergoprom company for the supply of Turkmen gas to the Ukrainian market. The company, shared by the parties 50-50, will be registered in Switzerland."
However, Raiffeisen Investment has said that it only manages RosUkrEnergo for unknown "Ukrainian businessmen".
According to documents uncovered during the United States diplomatic cables leak
United States diplomatic cables leak
The United States diplomatic cables leak, widely known as Cablegate, began in February 2010 when WikiLeaks—a non-profit organization that publishes submissions from anonymous whistleblowers—began releasing classified cables that had been sent to the U.S. State Department by 274 of its consulates,...
US-diplomats suspected Raiffeisen Investment was "a front to provide legitimacy to the gas company that we suspect he [U.S.-indicted Russian crime boss Semyon Mogilevich] controls".
One of the cases involved Russian bank called "Diskont". To illustrate the scale of money laundering, $1.6 billion was transferred from Diskont Bank's accounts to Raiffeisen on August 29, 2006. According to New York Times, Diskont received a 10% commission from the money transfers. In September 2006, the deputy chairman of the Central bank of Russia, Andrey Kozlov, revoked Diskont's license. Just days later Kozlov was murdered.
The bank has been also suspected of laundering money for the Italian mafia.
External links
- Raiffeisen Official website
- Raiffeisen Zentralbank Österreich AG Official website
- Raiffeisen Bank International AG http://www.rbinternational.com/eBusiness/rzb_template2/677226413664515143-NA-NA-NA-10-EN.html
- RZB Outlook For Commonwealth Of Independent States