Raiffeisen Creates Regional Custody Hub, Links to CSDs in CEE

Raiffeisen Bank International (RBI) has set up a regional custody hub in Vienna to service Central and Eastern Europe (CEE) with direct settlement links to the different central securities depositories (CSDs).

Previously, RBI serves the region through local subsidiaries but has now restructured its business across 15 countries in CEE by implementing a new custody system in Vienna. In Poland and Slovenia, the bank is looking to sell its local subsidiaries, but because of the direct links to the CSDs in those markets, RBI’s custody coverage will still extend to those countries.

With its direct link to KDPW, Poland’s CSD, RBI became the CSD’s first foreign participant and first direct participant with whom KDPW exchanges instructions using SWIFT-based messaging.

Editor’s Note: Global Custodian will have a more in-depth article in the Spring magazine on RBI’s custody realignment in CEE.