Austrian Banks Have Biggest Exposure in Hungary - Top Bankers Meet in Vienna

Tuesday, June 08, 2010

Austrian banks appear at the top of a list in terms of exposure to Hungary according to a table compiled by JPMorgan (h/t FT Alphaville.)
TABLE: JPMorgan had this comment: All in all, the situation should be broadly contained after the initial concerns and some of the banks that have exposure to Hungary and that suffered last week should reasonably see some relief, although we believe it is fair to say that investors will remain very wary, given last week’s seriously alarming messages. Indeed CEE region may attract further scrutiny by the market having been so far less touched by the events and concerns that have affected the Euro area. Click to enlarge.
It did not take long and BNP Paribas came up with these figures detailing who stands to lose how much in Hungary. (h/t FT Alphaville)

TABLE: BNP Paribas commented, "We have used the BIS tables as well as annual reports of Hungary’s top 10 banks to get a better view about the level of the exposures... It is no surprise Austria is leading the table given Austrian banks strong presence in the Hungarian market (further detailed by the banks specific table). Germany, Italy and Belgium can also more or less be accounted for through the Hungarian subsidiaries of their respective banks as well as direct lending. We are however surprised by the exposure of France and can only guess that this is likely through French Banks’ subsidiaries in the region (e.g. Komercni Banka, 60% owned by SocGen), although this is just a speculation. As we cautioned in the past, there are a number of accuracy issues associated with the BIS figures such as (1) no difference between sovereign and non-sovereign exposure; (2) the figures do not take into account netting of exposures; (3) no detail on the concentration of the exposures and finally (4) no detail on how the information has been aggregated . . .
Check share prices of Erste Group here and Raiffeisen International here.

World's Top Bankers Meet in Vienna
Austria hosts this year's annual conference of the Institute of International Finance, a club for bank CEOs.
European Central Bank (ECB) President Jean-Claude Trichet, Austrian central bank governor Ewald Nowotny and billionaire financier George Soros are all scheduled to hold keynote speeches during the regular spring meeting of the IIF. The meeting will be chaired by IIF chief Josef Ackermann, head of Germany's largest bank Deutsche Bank, with Greek Prime Minister George Papandreou and his Hungarian counterpart Viktor Orban, Austrian President Heinz Fischer and Austrian Finance Minister Josef Pröll on the guest list. The list of top bankers expected to attend include the head of British bank HSBC, Stephen King; Jiang Jianqing of China's ICB; Jes Staley of JP Morgan; and Oswald Grübel of Swiss banking giant UBS.
On the agenda are the financial crisis and possible global responses, as well as financial market reforms.


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