VIENNA, June 8 Raiffeisen Bank International
will tighten up its compliance rules after its chief
executive resigned over offshore property deals, the bank's
Herbert Stepic quit suddenly last month after it was
revealed he had used mailbox firms in the British Virgin Islands
and Hong Kong to buy apartments in Singapore. His departure
exposed divisions at the banking group.
RBI Chairman Walter Rothensteiner said Stepic's conduct was
not in accordance with current thinking in the banking sector,
but said Raiffeisen had not had clear rules about how executives
should conduct their private business.
"It was neither necessary nor usual to give instructions in
such matters to colleagues with whom one had worked closely for
30 years. That will now change," Rothensteiner told Profil
magazine in an interview published online on Saturday.
Rothensteiner said the supervisory board had not known of
the scale of Stepic's foreign property investments until News
magazine revealed them. He reiterated that Stepic had resigned
of his own free will.
Stepic, 66, has denied any wrongdoing and says he decided to
quit to spare the bank a damaging debate about his personal
(Reporting by Georgina Prodhan, editing by Gareth Jones)