FRANKFURT, Feb 24 ― The European Central Bank (ECB) is reaching out to banks in the eurozone to assess their exposure to risk from Russia, it said Wednesday as the West threatened further sanctions over the Ukraine crisis.

"The ECB is closely monitoring the situation, and is in close contact with supervised banks and national competent authorities,” the bank told AFP.

The ECB was looking at what consequences further sanctions or the fallout from a wider invasion of Ukraine could have on banks' liquidity, loan books and their ability to keep operations running, according to Bloomberg, which first reported the news.

Risks to banks were "in the area of potential sanctions and the role that banks might have in ensuring that these sanctions are properly enforced”, the ECB's supervisory chief Andrea Enria said earlier this month as tensions were rising.

"The possible broader turbulence in financial markets” could also potentially endanger banks, Enria said, while adding that direct exposure was "relatively contained”.

Western countries have responded to Putin's recognition of two breakaway regions in eastern Ukraine with economic sanctions targeting individuals, banks and business ventures such as the Nord Stream 2 gas pipeline.

Leaders have warned there will be more sanctions against Moscow if it seeks to aggravate the situation further.

Shutting Russia out of the SWIFT, the international bank transaction payments system, which would make most financial transactions with the country impossible, has been touted as a possible severe measure. ― AFP