Impact of declining oil prices on banks

A file picture shows a pedestrian passing by a Barclays branch in London. The lender could be sitting on losses of US1bil. – EPA

US and Canadian banks that have lent heavily to the sector on the back of the US shale boom could be nursing their wounds

OIL’S sharp decline since June has left many banks looking at heavy losses and the estimated £2bil (RM11bil) losses for British lenders may be just the tip of the iceberg.