CEO of Austrian bank RBI offers resignation over property revelations

By bne IntelliNews May 24, 2013

bne -

Herbert Stepic, the chief executive of Austria's Raiffeisen Bank International (RBI), offered his resignation on May 24, according to a statement issued by the bank. The move follows reports earlier this week that Stepic used letterbox firms in offshore centres for property deals that he did not report to his employer.

"Herbert Stepic has informed the Chairman of the RBI Supervisory Board, Walter Rothensteiner, that he is offering to resign his position as CEO of Raiffeisen Bank International AG due to personal reasons. The responsible committees at RBI will promptly consider this proposal," the statement said.

A separate announcement read that "in light of recent events," a press conference would be held at the bank's Vienna headquarters at 10:00am on Friday, May 24.

The move from Stepic - who was a pioneer of banking in the new markets of Emerging Europe following the end of communism, and helped make RBI's unlisted parent Raiffeisen Zentralbank into one of the top three players in the region - follows a report by Austria's News on May 22. The magazine reported that Stepic's name had come up in the "Offshore Leaks" project - a campaign by the International Consortium of Investigative Journalists to expose the owners of secretive trusts in offshore centres.

News, a partner in the project that began with a leak of documents unmasking the details of 130,000 offshore accounts in April, reported Stepic owned mailbox firms Yatsenko International Ltd. in the British Virgin Islands, and Takego Holdings Ltd. in Hong Kong. The magazine quoted Stepic as confirming the information, although he stressed the firms named were "not offshore constructions" but "project companies" used to buy three flats in Singapore, with their income taxed in Austria.

Asked why he did not make the firms public, he said the arrangement was offered as standard by Swiss bank UBS to preserve the privacy of customers. Asked if he had paid tax in Austria on the income from selling one of the Singapore flats, Stepic said he had "always acted in line with tax regulations".

Related Articles

Drum rolls in the great disappearing act of Russia's banks

Jason Corcoran in Moscow - Russian banks are disappearing at the fastest rate ever as the country's deepening recession makes it easier for the central bank to expose money laundering, dodgy lending ... more

Kremlin: No evidence in Olympic doping allegations against Russia

bne IntelliNews - The Kremlin supported by national sports authorities has brushed aside "groundless" allegations of a mass doping scam involving Russian athletes after the World Anti-Doping Agency ... more

PROFILE: Day of reckoning comes for eccentric owner of Russian bank Uralsib

Jason Corcoran in Moscow - Revelations and mysticism may have been the stock-in-trade of Nikolai Tsvetkov’s management style, but ultimately they didn’t help him to hold on to his ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss