Moody's Investors identifies an environmental risk on $218 billion in loans. About 29% of the loans were granted to sectors exposed to considerable environmental risks.

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

"We expect environmental factors to lead to a deterioration in banks' long-term credit quality and profitability if they do not take steps to prudently manage climate and environmental risks," Moody's analysts point out.

The sectors concerned are oil, gas, transport and mining. Loans released by banks for companies operating in these areas are considered to be very high risk. The industrial, agricultural and trade sectors come in second place.