RBI’s structural FX charges climb on unhedgeable ruble
Trading-book RWAs under the standardised approach have soared 234% since Ukraine invasion
The lack of hedging options for the Russian ruble has further increased costs for Raiffeisen Bank International (RBI) to maintain its subsidiary in Moscow, with the currency’s vagaries resulting in €693 million ($743 million) of new risk-weighted assets (RWAs) for the first quarter.
Standardised market RWAs rose 9.5% to €8 billion during the period, marking a 234% increase since end-2021. This surge came as a result of the bank’s entanglement between Western-imposed sanctions over the invasion
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