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German bank exposure to Russia is "manageable" - Bundesbank
December 17, 2014 / 3:37 PM / 3 years ago

German bank exposure to Russia is "manageable" - Bundesbank

FRANKFURT, Dec 17 (Reuters) - German banks hold a “manageable” amount of risk to crisis-hit Russia, the Bundesbank said on Wednesday, as the country’s top two lenders, Deutsche Bank and Commerzbank, each reported over 5 billion euros ($6 billion) exposure.

Commerzbank is Germany’s top lender to Russia with 5.4 billion euros in exposure at end-September, most of it in loans to large corporate borrowers, followed closely by Deutsche Bank with 5.2 billion euros exposure, the banks said.

German banks have a total of 16.3 billion euros exposure to the Russian Federation, or less than one percent of Germany’s foreign lending, bank lobby group BdB said separately. German banks have cut their exposure considerably from 20 billion euros in 2010, the lobby said.

“We’re watching the economic developments in Russia with great attention,” Andreas Dombret, head of regulation at the Bundesbank, told Reuters. “But German banks’ exposure to Russia is manageable.”

Commerzbank said its exposure was to long-term clients and that it was backed with good collateral. “This exposure has never caused any problems so far and we don’t expect a deterioration of the relationships,” the bank said in a statement.

Much of Commerzbank’s exposure is in the form of trade finance and is covered by export credit insurance, the bank said. ($1 = 0.8028 euros) (Reporting by Andreas Framke, Alex Huebner and Kathrin Jones, writing by Thomas Atkins; Editing by Elaine Hardcastle)

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