From Reserve Bank of Australia:
The European Debt Situation
The Effect on European Banks
- first, these banks have experienced valuation losses on their sovereign debt holdings; and
- second, these losses have raised concerns about the financial soundness of banks, particularly in an environment where some governments are seen as having less capacity to support banks financially. This has caused investors and other banks to become reluctant to lend to them, and has pushed up banks' funding costs.
Australia's Exposure to European Developments
(a) Financial linkages
|Banks||Public sector||Private sector||Total|
|$billion||$billion||$billion||$billion||Per cent of assets|
(a) Australian-owned banks and subsidiaries and branches of foreign-owned banks; exposures include those to foreign-owned banks booked in Australia.
|Greece, Ireland, Italy, Portugal and Spain||2.2||0.7||3.3||6.1||0.2|
|France, Germany and the Netherlands||59.2||3.0||12.4||74.6||2.3|
(b) Trade links
Excluding re-exports from Hong Kong and
Singapore and oil exports from Singapore
Source: ABS; CEIC; Eurostat; IMF; ONS; RBA; Thomson Reuters