Belgium’s KBC Bank has said it will examine the files of its private banking clients who purchased Collateralised Debt Obligations, and will assume responsibility if the investigation reveals any shortcomings on the part of the bank.

KBC has previously confirmed that a number of its private banking clients had asked “critical questions” about their CDO investments; over the coming months the files of all KBC private banking clients with exposure to CDOs will be examined on a “case-by-case basis”, the bank said in a statement.

KBC said it gave the clients concerned as much information as possible on CDOs, through prospectuses, information sheets, and regular discussions about their portfolios. Clients were sold primarily investment grade CDOs (with ratings above Baa3), the statement continued.

Earlier this month, KBC announced it suffered a net loss of €2.484 billion ($3.2 billion) for the 2008 financial year, contrasting with a profit of €3.281 billion for the previous year, while its European private banking division made a profit of €161 million, a fall of 24 per cent from 2007.

The bank said that when exceptional items are taken into account, however, its group underlying net profit was €2.270 billion for 2008.

KBC’s banking group owns the UK private bank, Brown Shipley.