The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Regulation: Stepic warns against over-reacting

Raiffeisen International has continued to post healthy profits despite difficult economic in the central and eastern European countries in which it operates. Chief executive Herbert Stepic accepts that the financial world has changed but tells Euromoney he believes there is no need for draconian regulation.

erste-q.gif
What is the biggest issue facing your bank today?

Herbert Stepic, Raiffeisen International

The biggest single issue we face on an operational level is no doubt the impact the weakened macroeconomic situation is having on all sectors of the ‘real economy’. Like all banks active in emerging markets such as the central and eastern Europe region, we feel this impact in the form of rising non-performing loan rates, sharply higher provisioning rates, and declining credit volumes, to name just a few developments. As such, the current crisis is about prudent banking: all banks committed to staying in business in the long term must be able to manage their risks effectively and to earn sufficient capital remuneration for further growth.

Regulatory developments are no doubt also of great relevance for us, as they are likely to have a direct impact on capital requirements and other elements essential to the proper functioning of a bank. However, what we should avoid is a situation in which too many regulators with similar but different tasks burden banks with excessive stipulations. For example, while stress tests are undoubtedly a good idea, I don’t think it’s a good idea for five different regulatory entities to implement five stress tests with five different methodologies – the tests’ findings will not provide five times the value of one single test.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree