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By NINA KOEPPEN
FRANKFURT—Banks' total exposure to Ireland and the southern rim of the euro zone in the second quarter was greater than previously thought, according to data from the Bank for International Settlements published Sunday.
The data confirm that German and French banks are among the world's largest creditors to the region.
France's total exposure to Greece stood at $83.1 billion at the end of the second quarter, comprising $57.3 billion in foreign claims and $25.7 billion in "other exposure," or the positive market value of derivative contracts, guarantees extended and credit commitments.
The BIS data on banks' "other exposure" hadn't been previously published, resulting in a greater exposure than estimated.
German banks' total exposure to Greece stood at $65.4 billion, mirroring $36.8 billion in foreign claims and $28.6 billion in other exposure.
With an exposure of $186.4 billion, German banks had the second-largest exposure to Ireland, after the U.K., where banks' exposure amounted to $187.5 billion at the end of the second quarter.
The BIS's data illustrate how costly it would be if struggling Greece or Ireland were forced to restructure their debts as part of a bailout, as some commentators had argued. Both countries required a bailout because of a crippling debt crisis.
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