Austria's Nowotny assesses banks' health

Austrian banks have little exposure the American subprime market, but they have been indirectly affected by the credit crisis, Ewald Nowotny, the governor of the National Bank of Austria, has said.

Nowotny said that the banks had been indirectly affected to a significant extent as refinancing costs rose, income declined, loan loss provisions had to be raised and risk aversion increased among investors especially towards exposures in central, eastern and south-eastern Europe.

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