Raiffeisenbank-Ukraine - The Largest Subsidiary of Western Bank In Ukraine Raiffeisenbank-Ukraine was established in March 1998 as a 100% subsidiary of Raiffeisenbank-Austria. According to statistics there are 203 registered banks in Ukraine, including 30 backed by foreign capital, and 9 with 100% foreign capital. Running a bank business in Ukraine is quite risky. Though Raiffeisenbank-Ukraine was founded at a time of relative economic stability, it faced the problematic August 1999 crisis in Russia, which also had a profound impact on the Ukrainian market. Since that time Ukraine experienced additional and extensive outflow of foreign capital. Many foreign companies frustrated by both the economic volatility of the region and unfriendly investment climate in Ukraine decided to pack their bags and terminate their activities in the country for good. However, Raiffeisenbank-Ukraine met the challenge with dignity despite the financial loses it underwent. It remained in the Ukrainian market. Moreover, it accepted a new strategy that enabled it not only recover from the crisis but also become the largest subsidiary of the western bank in Ukraine as of fall 2000. The bank's slogan is "Western Standard combined with local market knowledge". In fact Raiffeisenbank appeared in Ukraine in 1994 establishing its Representative Office that coordinated some of its operations in Ukraine, Moldova, and Belarus. The bank closely familiarized itself with banking environment in Ukraine and obtained expertise in dealing with the major bank related issues here. Today, RBU is a fully licensed commercial bank with the right to offer to its resident and non-resident clients a full range of banking products for domestic and cross-border operations in both Ukraininian Hryvnas and foreign currencies. Its services are quick, efficient and highly professional. According to the Association of Ukrainian Banks, as of November 1 Raiffeisenbank-Ukraine had UAH 435.5 million in net assets. In 1999, Raiffeisenbank-Ukraine's net assets grew by 390% from UAH 46.8 million to UAH 230.5 million. During 10 months of this year, its net assets grew by additional 89% and its profits amounted to UAH 1.78 million during this period. Ihor Frantskevych, president of Raiffeisenbank-Ukraine, indicates that one of the key factors that contributed to the bank's substantial growth was its orientation toward local clients. Most of the foreign banks operating in Ukraine tend to provide services primarily to foreign companies based in the country. Raiffeisenbank-Ukraine provides services to both foreigners and Ukrainian entities. Raiffeisenbank-Ukraine has also obtained the confidence from the Ukrainian Government. Earlier this year, the State Property Fund granted it the status of a main consultant in the tender for 68% shares in Zaporizha Aluminum Plant At the beginning of this year, Raiffeisenbank-Ukraine was the first subsidiary of Western bank to receive an additional EUR 5 million in investments from its head office. © Ukraine-Today.com