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EU banks could absorb default
FITCH has said that most of Europe’s banks do not have a large amount of direct exposure to Greece, holding only €37bn in the sovereign’s bonds.
“Banks should be able to absorb the immediate credit, market and liquidity risks with only minor, if any, negative rating actions,” the agency said of the situation in Greece. But this could change due to “the risk of a disorderly contagion spiral”, it added.
“Most at risk would be wholesale‐funded banks with direct exposure to peripheral Eurozone risk and banks still in rehabilitation mode,” Fitch said.