MW: European banks may face exposure to Dubai losses
By Simon Kennedy
LONDON (MarketWatch) -- Analysts at Credit Suisse estimated Thursday that European banks they cover could have exposure of around 13 billion euros ($19.6 billion) to Dubai. The broker said a 50% loss on the exposure would be equivalent to around a 5% increase in provisions in 2010 or a hit of around 5 billion euros after tax for the European banking sector as a whole. Analysts cautioned that the numbers are difficult to quantify and exposures will differ from one bank to another. It said that European bank that have worked as bookrunners for bond or loan deals in Dubai in recent years include Barclays (UK:BARC 304.00, -10.30, -3.26%) , Deutsche Bank (DB 75.22, +0.54, +0.72%) , Royal Bank of Scotland (UK:RBS 34.26, -1.51, -4.21%) , ING (NL:INGA 9.10, -0.52, -5.37%) , UBS (UBS 16.09, -0.01, -0.06%) and others.
