SA banks face nearly R1-trillion exposure to energy transition risks
Exposure of SA banks could trigger proposals to cushion financial sector
A study has found that SA banks have an exposure of almost a trillion rand to sectors vulnerable to the global energy transition, and this could trigger policy proposals to cushion the blow to the financial system and heap pressure on fossil fuel-tied industries to adapt.
Titled Transition and Systemic Risk in the SA Banking Sector (https://www.resbank.co.za/en/home/publications/publication-detail-pages/working-papers/2024/transition-and-systemic-risk-in-the-south-african-banking-sector), and published on the Reserve Bank website, the research shows that the sector is sitting atop a R2.8-trillion corporate credit loan book, 35% of which is tied to industries at risk of being left behind in the global shift towards a low-carbon economy. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.