...February 16, 2023 FRANKFURT (S&P Global Ratings) Feb. 16, 2023--S&P Global Ratings today said that it sees increased economic risk for the German banking sector. This stems from secondary effects from geopolitical factors, including the Russia-Ukraine conflict, continued disruptions in global supply chains, and longer-term risks to Germany's export-oriented manufacturing sector. Recent events have highlighted Germany's reliance on Russian gas and the related vulnerabilities of its export-oriented industrial sector, particularly its energy-intensive heavy industry. At the same time, we note the banking sector and economy as a whole have been spared from more severe scenarios due to a relatively mild winter curbing energy demand. Additionally, the government's efforts to reduce energy dependence on Russia and replace missing gas with increased liquified natural gas imports have prevented a more severe spike in prices and economic fallout. The economic impact of global supply chain bottlenecks...
