Sector · Sustainability

Climate risks have ‘sizeable’ impact on bank profits

Climate risks have ‘sizeable’ impact on bank profits

Banks are vulnerable to damage from climate change, which could particularly affect their balance sheets and asset holdings. Banks in southern Europe are more vulnerable than average: they face increased physical risks for more than 60 per cent of their corporate loans. Transition risks mainly involve loans to carbon-intensive sectors, which are included in the portfolios of a limited number of banks.

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