Le Italian banks are in second position in the ranking of most exposed institutes in Russia, Belarus and Ukraine. According to numbers from the Bank of International Settlements relating to September 2021 and reworked by Bank of Italy, primacy belongs to French banks, to which it refers almost 25% of total exposures of the member countries of the BRI. Following at a short distance, with shares exceeding 20%, are the institutes of Italy e Austria. Off the podium the gaps become greater: the Use are close to 15%, while the Japan it is below 10%; Germany e Britainhowever, they do not reach 5%.
Italian banks: the numbers of exposure in Russia, Belarus and Ukraine
In the Financial Stability Report published on 28 April, the Bank of Italy specifies that, at the end 2021, the exposures of Italian banks in Russia, Belarus and Ukraine “amount overall to 29,1 billion euros, equal to 0,7% of total financial assets, of which 20,6 billion in the form of cash financial assets and the rest in off-balance sheet assets (guarantees, derivatives and irrevocable commitments)”.
The situation of Intesa Sanpaolo and Unicredit
In detail, most of the exposures "were concentrated in the first two banking groups", namely Intesa Sanpaolo and Unicredit, "which have subsidiaries in these countries", continues the Report.
Last month Understanding he quantified at 5,1 billion euros its exposure to Russia and Ukraine. The CEO of Unicredit, Andrea Orcel, instead spoke of an exposure to Russia equal to 7,5 billion (200 basis points in terms of assets) and announced that the Bank is evaluating the possibility of leaving the country.
Sanctions and higher energy prices
But it's not just direct exposure that causes concern. Bankitalia explains that the war risks damaging bank assets also through other channels. In fact, Italian companies could encounter difficulties in repaying loans for at least two reasons:
- international sanctions against Moscow they affect companies that export to Russia;
- rising energy prices it has a heavy impact on the operating costs of all businesses.
For these reasons, it is virtually certain that in the coming months Npl flows will grow again. However, according to Via Nazionale analysts, the non-performing rate of loans will remain at manageable levels, very far from the 9% reached a decade ago, during the sovereign debt crisis. Compared to then, Bankitalia believes that Italian institutions have greatly improved in credit selection and risk management techniques.
The repercussions of the war on Italian insurance companies
For the insurance market, the Report underlines that the crisis generated by the war "has so far had limited consequences" in our country, even if "the high uncertainty about the duration and scope of Russian hostilities, sanctions and retaliation makes it difficult to assess the impacts on the sector in prospective way".
An IVASS survey last month revealed that the risks of solvency, profitability of investments and liquidity are "in general assessed as medium-low and considered stable", at least until the end of the second quarter.
In particular, “the strategies of investment diversification by geographical area and industrial sector have limited direct and indirect exposures of companies to Russian, Belarusian and Ukrainian issuers, which in December 2021 amounted to 1,2 billion (0,1% of total investments by Italian insurance companies) and in February had decreased by 39% due to divestments and turbulence in the financial markets – concludes Bankitalia -. Investments in energy-intensive sectors were also limited (15 billion in December 2021, equal to 1% of total investments). However, Italian companies remain subject to the risk of variations in private and public bond spreads, which could increase”.
