ECB Stress-Tests Banks’ Russia Exposure as Putin Pushes Ukraine
- Supervisors looking at liquidity, loan books, trading and FX
- Lenders still analyzing effect of enacted Western sanctions
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The European Central Bank is telling lenders active in Russia to report on the risks they face from a range of diplomatic and military scenarios related to Moscow’s tensions with the West over Ukraine, according to people familiar with the matter.
The Frankfurt-based ECB is working with banks to assess risks to their liquidity, loan books, trading and currency positions as well as their ability to keep operations running, said the people, who asked to remain anonymous as the discussions are private. The regulator, in touch on a daily basis in some cases, wants lenders to assess scenarios including severe economic sanctions as well as the real-world consequences of an invasion, they said.