Under the newly authorized restructuring plan, the Austrian bank must dispose of its holdings in Raiffeisen Zentralbank, Volksbank Romania, Volksbank Leasing International, Volksbank Malta and Investkredit International Bank.
Volksbank Leasing International owns 80% in Volksbank Leasing Romania, while Volksbank Romania holds the reminder 20%.
Additionally, Volksbank AG must gradually reduce its assets to EUR18.39 billion by 2017, from EUR30.49 billion in June this year, the lender said in a statement.
Risk-weighted assets will also be scaled down to EUR10.08 billion, from EUR15.54 billion presently, while dividend payments will be suspended for the duration of the restructuring process.
Founded in 2000, Volksbank Romania was originally part of Volksbank’s eastern European arm Volksbank International. The latter was sold to Russia’s Sberbank in 2011, in a deal which left out the Romanian lender.
Volksbank Romania was later transferred to Volksbank’s non-core division pending sale.
The Romanian bank reported losses of EUR7 million in the first three months of 2012, narrower than expected, according to data from the mother bank.