EBA

The European Banking Authorities data show it is very much domestic, rather than foreign banks, that are exposed to sovereign risk in the troubled peripheral eurozone countries.
The EBA broke down Greek sovereign exposures by counterparty countries. Its figures show 67% of Greek sovereign exposure is for Greek banks and it is a similar picture in Ireland and Portugal.
The next largest share of Greek sovereign exposure is for German banks, with 9%, France 8% and then Cyprus at 6%. Other shares are tiny, with UK banks at 2% and Italian banks just 1%.
Greek institutional exposure splits 69% to Greek banks and 10% to Germany.
The data from 90 EU banks shows the aggregate exposure-at-default (EAD) Greek sovereign debt outstanding amounts to E98.2 billion.
The aggregate EAD exposure for Ireland is E52.7 billion, with 61% held domestically and for Portugal E43.2 billion with 63% held domestically.
The EBA sovereign exposure data are for end 2010 but it says - "the EBA is not aware that these figures have changed substantially since end 2010 and for a few banks their holdings of such debt has in fact decreased."
"The direct first-order impact, even under harsh scenarios, would primarily be on the home-banks of countries experiencing the most severe widening of credit spreads," the EBA said.
"In such cases the capital shortfall should be easily covered with credible back stop mechanisms such as the support packages already issued or being defined for Ireland, Portugal and Greece."