French Banks Have EU’s Top Middle East Exposure, EBA Says

French banks had about €60.8 billion ($69.9 billion) in direct exposures to counterparties located in the Middle East at the end of last year, according to the EU banking regulator. This is a factual disclosure of counterparty concentration and warrants monitoring for credit and geopolitical risk to Middle East exposures, but it does not by itself signal immediate systemic stress.

Analysis

French banks had about €60.8 billion ($69.9 billion) in direct exposures to counterparties located in the Middle East at the end of last year, according to the EU banking regulator. This is a factual disclosure of counterparty concentration and warrants monitoring for credit and geopolitical risk to Middle East exposures, but it does not by itself signal immediate systemic stress.