Summary
EUROPEAN banks' exposure to commercial property will be a problem next year and become an acute concern in 2011 and 2012 when a high volume of loans are due, the Fitch ratings agency has warned.
The risk is most intense in countries such as Britain, Ireland and Spain where banks have high exposure relative to tier 1 capital and whose domestic property markets have seen steep declines in values, Fitch said in a report. It added that the problem could lead to further rating cuts.See the full content of this document
Extract
Uk Leads Exposure to Commercial Loan Risk
Gordon Scott, managing director in Fitch's financial institutions team, said: "Many b...
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