...July 19, 2022 FRANKFURT (S&P Global Ratings) July 19, 2022--S&P Global Ratings today said that it sees higher risks to the economic risk profile of the German banking sector because of risks from secondary effects of the Russia-Ukraine conflict as well as continued disruptions in the global supply chain. We believe that economic risks for the German economy are increasing due to the country's substantial exposure to energy sourcing from Russia, which makes it vulnerable to a potential gas shutdown. Should this adverse scenario occur, the resulting economic shock and implications for the country's growth potential over the medium term could impair asset quality for corporate and consumer loans made by German banks, given the country's export dependence and the longer-than-expected disruptions in global supply chains. Neither risk is factored into our base-case expectations. We believe the German economy has a demonstrated ability to absorb large economic and financial shocks based on its...
