“RPT-Fitch: Austrian Banks are Most Exposed to Russian Risk”
The recently published Fitch ratings highlight the exposure of European banks to events in Ukraine. According to the Bank of International Settlements, foreign banks are currently investing a total of USD242 billion in Russia; 76% of this investment is from European banks, with only 16% from American banks, and 7% from Asian banks.
One such example is Austria’s Raiffeisen Bank International which has a Russian exposure of around €20 billion. Reuters speculates that in light of the international response to Ukraine, “profitability from these operations is likely to be lower in 2014”.
A question for consideration – could recent events in Ukraine have greater economic implications on Europe than on Russia?