According to Raiffeisen Bank International chairman, it would be tightening its compliance rules after its chief executive officer resigned as a result of botched offshore property deals.
In a sudden move, Herbert Stepic quit last month after it was discovered that he used mailbox firms in the British Virgin Islands and Hong Kong to purchase apartments in Singapore. With his departure, deep divisions were exposed within the banking group.
RBI Chairman Walter Rothensteiner commented that the actions of Stepic was not aligned with the current mindset in the banking sector but said that there were not clear rules given to Stepic as to the proper manner that executives should conduct themselves in their private affairs.
During an interview with Profil magazine, Rothensteiner said, "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."
He added that the supervisory board did not know the breadth of Stepic's property investments overseas until an investigative report by News magazine exposed them.
Stepic for his part, said he denied any wrongdoing but resigned to 'spare the bank a damaging debate about his personal investments,'
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