That Russia risk of European banks

Frankfurt, Paris, Milan The Ukraine crisis is not only a concern for international foreign policy, but increasingly also for European bank supervisors. The European Central Bank (ECB) is primarily concerned with the question of how well the financial institutions in the euro zone are prepared for economic retaliatory measures by the West against Russia.

“When the possibility of sanctions is circulated, it is an issue of concern. The banks have to prepare for this,” emphasized the ECB’s chief banking supervisor, Andrea Enria, on Thursday.

In addition, according to financial circles, the financial institutions must provide the ECB with precise figures on their activities in Russia and explain what effects the default of larger loans would have on them. “The exposure of banks from the euro zone in Russia is very different,” said an ECB spokeswoman. The central bank is monitoring the situation closely and is exchanging views with the banks it supervises about the potential risks that could arise if the conflict escalates.