FRANKFURT: Euro zone banks’ direct exposure to Russia is relatively minor but sanctions could still reverberate through the financial system through volatility in energy and commodity prices, European Central Bank supervisor Andrea Enria said on Thursday.
“They (indirect effects) could run through concentrated exposures towards sectors or individual customers indirectly hit by the sanctions, through the spike and volatility in energy and commodity markets, through heightened volatility in financial markets, and through the general deterioration of the macroeconomic outlook in the European Union,” Enria said.
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“We stand ready to implement swift supervisory actions should the risk situation of individual banks deteriorate,” Enria added.
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