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Wiedner, Heinz --- "Banking in South-East Europe: the case of the Raiffeisen Group" [2005] ELECD 399; in Liebscher, Klaus; Christl, Josef; Mooslechner, Peter; Ritzberger-Grünwald, Doris (eds), "European Economic Integration and South-East Europe" (Edward Elgar Publishing, 2005)

Book Title: European Economic Integration and South-East Europe

Editor(s): Liebscher, Klaus; Christl, Josef; Mooslechner, Peter; Ritzberger-Grünwald, Doris

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845425173

Section: Chapter 24

Section Title: Banking in South-East Europe: the case of the Raiffeisen Group

Author(s): Wiedner, Heinz

Number of pages: 4

Extract:

24. Banking in South-East Europe:
the case of the Raiffeisen Group
Heinz Wiedner

This chapter describes, first, where the Raiffeisen group operates in the
region of South-East Europe, what businesses we run, and what overall
approach we have pursued in opening up these markets. Then some general
economic and financial indicators for the region are provided. Finally the
chapter focuses on banking concentration and market shares in the
regional banking sectors.
Throughout the region, the Raiffeisen Group has basically adhered to
the principle of entering the markets at an early stage. We have typically set
up greenfield operations and, in some countries, have later moved on
to acquisitions when wanting to expand our portfolio, or when the oppor-
tunity came up. Our most recent acquisition in South-East Europe was the
Savings Bank of Albania, which we bought at the beginning of 2004.
With regard to the question of either using local management and know-
how or bringing in foreign expertise, we do in principle rely on local man-
agement. We obviously provide external support, help, coaching and
certain tools and instruments that we have available, but it is one of our
governing principles to have local management there to run the bank as
much as possible. This is because it is still more important to know the envi-
ronment, to know your local customers than it is to only know Western
practices. Obviously, that has to be complemented by group know-how and
knowledge of best practice. ...