The impact of the Turkish lira crisis on the balance sheets of the most exposed European banks, including Italian UniCredit, represents a manageable risk, the rating agency DBRS announced on Tuesday.
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The agency states that the banks most exposed to the crisis in Turkey – through subsidiaries and investments in equity stakes – are Italian UniCredit, Spanish BBVA, French BNP Paribas, Dutch ING, and British HSBC, according to Nasdaq.
DBRS expects a negative impact on profitability and a slight deterioration in asset quality for some of these banks.
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“Despite this, DBRS believes that the overall impact (of the Turkish lira crisis) is manageable, given the diversified business models and strategies adopted by banks for exposure to emerging markets,” the statement said.
