Banks around Europe are tallying up what they stand to lose in the face of uncertainty about Greece’s future in the eurozone.
It is calculated that German banks have around 23.5 billion euros in credit exposure to Greece.
However the risk is limited as the biggest commercial lenders – Deutsche Bank and Commerzbank – reportedly hold only a tiny fraction of that.
The German state-owned development bank KfW, has 15 billion euros of loans to the Greek government according to banking industry group BdB.
“The credit exposure of German banks in Greece is low,” BdB head Thomas Kemmer said in a statement. “That’s why, should it come to insolvency for Greece, the direct effects on German banks could be overcome.
“Even the contagion effects that would accompany an exit could be endured better than two or three years ago.”
One study found France’s Credit Agricole is the most exposed of Europe’s commercial banks.
Greek politics has weighed on financial markets, and pulled down the value of the euro, as speculation intensified that Greece could be forced to leave the eurozone after a snap election on Jan. 25.