Nature-related risks and banks

According to a report titled An exploration of nature-related financial risks in Malaysia, it was found that 54% of the commercial loans portfolio that was analysed is exposed to sectors that depend to a high extent on ecosystem services. The report was published by Bank Negara and the World Bank yesterday.

KUALA LUMPUR: Malaysian banks are exposed to a broad range of nature-related physical and transition risks given the types of loans provided to the various economic sectors, a report shows.

According to a report titled An exploration of nature-related financial risks in Malaysia, it was found that 54% of the commercial loans portfolio that was analysed is exposed to sectors that depend to a high extent on ecosystem services.