© Reuters. FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, December 8, 2016. REUTERS/Ralph Orlowski
FRANKFURT (Reuters) – All euro zone banks can withstand a full write-off of their Russian exposure and still respect their capital requirements, the European Central Bank’s top supervisor Andrea Enria said in a letter published on Wednesday.
“All banks involved would maintain sufficient headroom over the minimum and buffer requirements,” Enria said in the letter to members of the European Parliament.
He added that the nine banks with the largest exposure to Russia would see their capital reduced by 70-95 basis points on average in the event of a wipe-out and for none of them the hit would be bigger than 200 basis points.
All large euro zone banks can withstand Russian write-off, ECB says