Shares of Raiffeisen Bank International (RBI) fell more than 8% in early trading on Thursday after a report by short-seller Grizzly Research alleged misconduct connected to the bank's Russian subsidiary.
The Vienna-based bank came under pressure following the publication of the critical report, which called on the Austrian Financial Market Authority (FMA), the European Central Bank and the US Treasury to launch a formal investigation into RBI's activities in Russia.
A short-seller profits from declining stock prices by borrowing and selling shares it later repurchases at a lower cost. Grizzly Research's authors urged regulators to scrutinize RBI's operations through its Russian affiliate.
In response, RBI told Reuters it maintains confidence in the strength of its multiple-verified compliance systems. "We also see a number of factually incorrect and misleading statements" after an initial review, the bank said in a statement.
The episode underscores ongoing scrutiny of Western banks that retained exposure to Russia following Moscow's invasion of Ukraine, a period that triggered widespread divestment and regulatory pressure across the financial sector.
