No material loss from Dubai: CBA

Commonwealth Bank of Australia Ltd (CBA) has confirmed it does not expect to incur a material loss from its financial exposure to Dubai World.

CBA's announcement on Monday came after its big three rival banks confirmed on Friday that their financial exposures to debt-laden Dubai World would not generate material losses.

Dubai World is the the holding company of the Dubai government, which is seeking a six-month moratorium on debt repayments.

The Dubai government announced on Thursday that it would restructure its investment vehicle, Dubai World, and request a moratorium on Dubai World's debt obligations, including subsidiary property unit Nakheel PJSC.

The announcement sent European equity markets plunging over three percent on Thursday.

Dubai World is seeking a standstill agreement on a $US3.5 billion bond due for repayment on December 14.

ANZ Banking Group (ANZ), Westpac Banking Corporation and National Australia Bank (NAB) confirmed on Friday that they were exposed financially to Dubai World but that they expected no material losses.

"We work with a number of well-established relationships throughout the Middle East, but we do not believe there will be any material adverse impacts on these relationships as a result of the moratorium announced by Dubai World," an ANZ spokesman said on Friday.

Shares in ANZ, Westpac, NAB and CBA dropped over 3.4 percent on Friday amid a market-wide sell-off of over 2.7 percent.

Commonwealth Bank released a one sentence statement on Monday.

"Commonwealth Bank of Australia confirms that it does have a financial exposure to Dubai World but it does not expect to incur a material loss as a result of the recently announced debt moratorium," the bank said.

- AAP