European Banking Authority: indirect risks for European banks, despite low exposure

The European Banking Authority (EBA) has announced that European banks have a limited direct exposure to the Middle East, representing less than 0.5% of their total assets, with estimates of 132 billion euros by the end of 2025.

Although the volume is considered small, the EBA warns that escalating tensions in the region could generate indirect effects, such as rising energy prices, inflation, and disruptions in supply chains, affecting sectors such as transportation and construction.

French banks are the most exposed, with 60.825 billion euros invested, followed by German and Spanish banks.

The main activity of banks in the Middle East consists of lending to other financial institutions, with a significant concentration in the United Arab Emirates, Qatar, and Saudi Arabia.