The Co-operative Bank's Eurozone debt exposure

July 21, 2011

The Co-operative Bank was not asked to participate in the European Banking Association (EBA) Stress Test exercise that was published on 15th July 2011. In line with the Financial Policy Committee recommendation for disclosure this release provides figures for The Co-operative Bank as at 31 December 2010. The disclosures are broadly based on principles outlined by the EBA.

As part of the Co-operative Group, which is owned and run for the benefit of its members, The Co-operative Bank remains a low-risk UK-based operation with strong mutual principles.

The Co-operative Bank had no sovereign exposure to ‘peripheral’ euro area countries (Portugal, Ireland, Italy, Greece and Spain).

The Co-operative Bank had a €3m exposure to the Kingdom of Sweden but held no other Euro area sovereign debt.

The Co-operative Bank exposure to Financial Institutions was:

Austria €46m
Belgium €217m, €114m of which had a maturity within 30 days and €50m within 1 year
Denmark €6m which had a maturity within 1 year
Finland €29m which had a maturity within 1 year
France €943m, of which €425m had a maturity within 30 days and €331m within 1 year
Greece zero exposure
Germany €460m of which €277m had a maturity within 30 days
Iceland zero exposure
Ireland €153m, of which €103m had a maturity within 1 year
Italy €478m, of which €303m had a maturity within 30 days and €175m within 1 year
Luxembourg zero exposure
Netherlands €12m which had a maturity within 30 days
Norway zero exposure
Portugal €40m
Spain €562m, €263m of which had a maturity within 30 days and €106m within 1 year
Sweden zero exposure

Eurozone counterparty and country limits have been managed down over the last 24 months. The majority of the underlying exposure to higher risk Eurozone counterparties comprised money market lending and short dated bonds that were in run-off.

Overseas EEA Corporate customer exposure (as defined by the EBA) totalled €208m. There are no exposures to Retail customers based outside of the UK.