MILAN (Reuters) – The impact on capital for the European banks most exposed to the Turkish lira crisis is manageable, rating agency DBRS said on Tuesday.
The agency said the banks most exposed to Turkey, through subsidiaries or equity investments, were BBVA <BBVA.MC>, UniCredit <CRDI.MI> BNP Paribas <BNPP.PA>, ING <INGA.AS> and HSBC <HSBA.L>.
It said it expected negative impact on profitability and some deterioration in asset quality for some of the banks.
“Nevertheless, DBRS considers the overall impact to be manageable given the banks’ diversified business models and strategies in place for their emerging markets exposures,” it said in a statement.
(Reporting by Stephen Jewkes, editing by Giulia Segreti)