Former Russian clients of Raiffeisen Bank turn to OTP Bank for foreign currency transfers
After the Russian division of Austria's Raiffeisen Bank International halted foreign currency transfers for most clients, many began transferring to the Russian subsidiary of Hungary's OTP Group, known as OTP Bank, as was reported by Vedomosti, citing bank clients in the import sector.
The report notes that due to a surge in corporate clients, OTP's main bank has been unable to process transactions promptly. As a result, some payments in euros are being returned to Russia.
According to bank clients, OTP Bank has been unable to handle the increased volume of transactions within its standard ten-day processing window, leading to funds being returned after the deadline.
Raiffeisen Bank stopped processing foreign currency transfers for individuals on September 2. This decision was part of the bank's compliance with the European Central Bank's directive to reduce its business in Russia.
In June, the ECB ordered Austria's Raiffeisen Bank International to reduce its loan portfolio in Russia by 65% by 2026. Following this, Raiffeisen Bank ceased accruing interest on savings accounts and suspended the opening of brokerage accounts for retail investors.
Experts predict that the role of the Hungarian financial institution in handling transactions with Europe will grow. However, as the volume of transactions increases, so does scrutiny from European regulators, which could lead to additional inspections.
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