Off The Wire
ECB growing concerned over euro zone bank exposure to Turkey -FT
The ECB, which declined to comment on the FT report, is said to be chiefly concerned about BBVA , UniCredit and BNP Paribas . They have among the largest operations in Turkey, although their local subsidiaries' contribution to the overall balance sheet is relatively modest.
The Turkish lira has resumed its prolonged slide as a rift between Turkey and the United States widens and concerns grow about President Tayyip Erdogan's grip on monetary policy under a powerful new executive presidency. A supervisory review by the ECB does not yet see the issue as critical but it is concerned that borrowers may not be hedged against the lira's weakness, a worry since foreign currency loans make up about 40 percent of the Turkish banking sector’s assets, the FT said.
(Reporting by Balazs Koranyi; Editing by Catherine Evans)Messaging: firstname.lastname@example.org))