Moody's Investors identified environmental risk on $218 billion in loans. Around 29% of loans were granted to sectors exposed to considerable environmental risks

The latest study by Moody's Investors Service on the African banking sector published on Tuesday 23 March notes that African banks could see their level of risk reach significant proportions and their revenues plummet.
The 49 banks evaluated in 14 countries have provided nearly $218 billion in credit to sectors exposed to environmental factors. This represents about 29% of their total credits.

“We expect that environmental factors will lead to a deterioration in the credit quality and profitability of banks over the long term if they do not take steps to prudently manage climate and environmental risks,” Moody's analysts say.

The sectors concerned are oil, gas, transport and mining. Loans released by banks for companies operating in these areas are considered to be very risky. The sectors of industry, agriculture and commerce are in second place.