Raiffeisen's member banks will be a tough sell on adopting a new structure purely for the sake of making regulatory oversight simpler. One of five systemically relevant banks in Switzerland, Raiffeisen is more difficult to regulate due to its decentralized structure.
The order to examine incorporating is directed at Raiffeisen Switzerland only, a spokesman for Finma told finews.com, and not to the member-owner banks themselves. The regulator said it had given Raiffeisen a deadline for the evaluation.
For Raiffeisen's part, the bank is undergoing an extensive internal probe led by Swiss banking heavyweight Bruno Gehrig in parallel to the criminal one into its ex-CEO. In view of Gehrig's clean-up, Raiffeisen isn't likely to be able to seriously evaluate strategic questions about its legal structure until mid-next year.
«Not Serve Two Masters»
Until then, Raiffeisen's member-owners are expected to mount considerable resistance to Finma's efforts to overhaul the bank's structure. With Raiffeisen's reputation in tatters following allegations Vincenz enriched himself with millions in secret side deals, the bank is playing up the values of its founding fathers, Friedrich Wilhelm Raiffeisen in Germany and Johann Traber, a Swiss pastor.
Christian values, federalism, «one member, one vote», and client proximity are held up as Raiffeisen's lofty ideals – all the more because cooperatives are widespread and popular in Swiss retail, property, and other sectors.
«Ye cannot serve God and mammon», as one Raiffeisen banker summarizes the contrast between shareholder capitalism and cooperative ownership. «Hopefully, Finma will not force us to incorporate.»
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