Austrian banks unaffected by banking turmoil

Austrian banks unaffected by banking turmoil - finance minister tells NZZ
© Reuters. FILE PHOTO: The cost of Raiffeisen Bank Global (RBI) is seen on their headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard Foeger

ZURICH (Reuters) – Austria’s executive is monitoring the worldwide banking turmoil despite the proven truth that there are to this level no signs of it spreading to the country’s monetary sector, Finance Minister Magnus Brunner mentioned in an interview published on Saturday.

“Our banks did their homework thoroughly after the monetary crisis. They’re thoroughly prepared,” Brunner advised Swiss newspaper Neue Zuercher Zeitung.

He furthermore defended Raiffeisen Bank Global (RBI) which has come under fire for continuing to operate in Russia no matter the war in Ukraine.

The Austrian lender is now the most attention-grabbing Western monetary institution in Russia, offering a lifeline to other individuals and corporations there trying for to accumulate world funds, but it surely is under growing stress from Western officials and investors to quit.

In February the monetary institution mentioned it had obtained a ask for files from the US’ sanctions authority about its alternate connected to Russia.

Last month RBI mentioned it changed into once focused on a sale or that you just might perchance well imagine droop off of the Russian alternate.

“As for RBI, the monetary institution complies with all world sanctions,” Brunner advised NZZ. “It is furthermore no longer arena to sanctions itself,” he added.

“Incidentally, there are other European banks that proceed to operate legally in Russia. It’ll be essential for us that all sanctions are noticed,” he mentioned.

The minister furthermore mentioned Austrian inflation, which fell to an estimated 9.2% in March, changed into once tranquil too excessive and called on the European Central Bank to attain more to comprise mark will increase.

“The European Central Bank (ECB) in explicit can attain something about this, as a member of the euro zone we’re reckoning on the ECB,” Brunner mentioned.

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