Danske Bank scenario
Western Europe banks may reach 37.2 billion dollar losses according to the “ugly” scenario, mainly driven by the credits provided in Romania, reveals a recent research of Danske Bank.
Only Russia and Poland outrank Romania in the hierarchy of markets in the region, where western banks have a broad exposure, with losses estimated at 44.5 bln dollars, and 57.5 bln dollars respectively.
The “ugly” scenario finds Austria the hardest hit by a possible decline of Romanian economy, with losses estimated at 14 bln dollars, followed by France that could face a 5.3 bln-dollar loss, and Italy with 3.9 bln dollars.
Danske Bank’s analysts have also painted a mild risk picture, in which the banks in euro area would face only 12.4 bln dollar loss.
As the “hard risk scenario” predicts, the hardest hit country will be Austria again, with losses expected at 7 bln dollars, followed by France with 2.6 bln dollars. The total loses of western bank’s subsidiaries in Romania will amount 18 bln dollar, research found.
Only Russia and Poland outrank Romania in the hierarchy of markets in the region, where western banks have a broad exposure, with losses estimated at 44.5 bln dollars, and 57.5 bln dollars respectively.
The “ugly” scenario finds Austria the hardest hit by a possible decline of Romanian economy, with losses estimated at 14 bln dollars, followed by France that could face a 5.3 bln-dollar loss, and Italy with 3.9 bln dollars.
Danske Bank’s analysts have also painted a mild risk picture, in which the banks in euro area would face only 12.4 bln dollar loss.
As the “hard risk scenario” predicts, the hardest hit country will be Austria again, with losses expected at 7 bln dollars, followed by France with 2.6 bln dollars. The total loses of western bank’s subsidiaries in Romania will amount 18 bln dollar, research found.