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RBS most exposed bank to Irish debt

Royal Bank of Scotland has a net exposure of £4.3 billion to Irish government debt.

The facade of the Royal Bank of Scotland's London headquarters
The facade of the Royal Bank of Scotland's London headquarters
Image: AP Photo/Kirsty Wigglesworth

ROYAL BANK OF Scotland (RBS) is the most exposed bank to Irish debt- with a net exposure of almost £4.3 billion.

A high-profile ‘stress test’ of the bank  in July determined that RBS held £3.3 billion in its banking book and £958 million in its trading book at the end of March.

RBS has more Irish sovereign holdings that both Bank of Ireland and Allied Irish Bank- the second most exposed bank according to the Financial Times.

The stress test involved asking ninety-one international and regional banks to disclose their exposure to both central and local government date across all European Union member states.

RBS owes most of its exposure to its ownership of Ulster Bank. Ulster Bank posted an operating loss of €360 million in August, compared with a loss of €10 million in the same period last year.

Other banks with big exposures include Danske Bank, BNP Paribas, HSBC and Crédit Agricole. Danske Bank described its Irish loan losses as “scary” yesterday.

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