Raiffeisen may close some arms

Austrian bank Raiffeisen could cut assets and reshuffle its capital structure to meet regulatory targets without curbing growth in its core emerging Europe markets, the region's third-biggest lender said yesterday. The bank also said it might withdraw from some activities in central and eastern Europe due to tough new regulations and poor profitability. New rules proposed by regulators, which would link lending in central, eastern and southeastern Europe to the amount of refinancing that CEE units of Austrian banks can arrange locally, have stoked fears of a regional credit crunch.