PPERY - $11B In Palm Oil Industry Loans May Create Indirect Risks For Bank Investors
Banks have $11.4 billion in outstanding loans to the palm oil sector. Chain Reaction Research ((CRR)) selected the companies from a broader selection of “forest-risk” companies provided by Forests & Finance. Southeast Asian (Indonesia, Malaysia, Singapore) banks are leading the list of palm oil sector financiers, providing 66 percent of the outstanding loans. East Asian (Japan, China, and Taiwan) and European banks follow, with 13 and 12 percent respectively. Banks hold virtually no bonds, which are controlled by institutional and private investors.
The banks with the highest relative exposure to the palm oil sector