Moody's: Asean banks making progress, but facing challenges to decarbonise finance

Net interest margin seen to flatten this year

KUALA LUMPUR: The Association of Southeast Asian Nations (ASEAN) banks have to navigate a challenging path amid pressure from investors, regulators and social forces to decarbonise their loan books and meet country-level net-zero emission targets that go beyond 2050, Moody's Investors Service said.

Senior vice-president Alka Anbarasu said disclosures related to climate risks by companies differ, making it difficult for banks to assess climate risks for their corporate clients.