Raiffeisen Bank has announced the closure of 10 branches and the dismissal of around 200 employees in Hungary. Raiffeisen had 141 branches and has taken the decision to reorganize and rationalize its activities.
Reasons for the restructuring according to the bank's announcement were the consequences of the economic and financial crises, narrowing incomes, a new system of redemption with relapsing lending and the new taxation system (see here).
Given that the bank will continue with its rationalization process throughout 2012, further job cuts might be implemented, as the bank has booked EUR 300 million losses in 2011.
However, Raiffeisen has confirmed that it will not exit the Hungarian market.