Banks to review El Niño exposure in client loans
The concerns follow warnings from money managers that this year’s extraordinarily powerful El Niño will leave investors with nowhere to hide. Banks are reviewing loans to clients exposed to El Niño, the latest sign of the growing impact the warm-weather pattern is having across the globe. Spain’s BBVA — which has a large presence in Latin America, a region vulnerable to crop-damaging drought and floods — has asked local risk teams to review loans, Bloomberg reported. The concerns follow warnings from money managers that this year’s extraordinarily powerful El Niño will leave investors with nowhere to hide, as it disrupts commodity supplies and drives up inflation. In some regions, however, the warmer weather may be welcome: A milder winter could help European and East Asian nations weather the worst of the energy price spikes caused by the Iran war, analysts said.
The concerns follow warnings from money managers that this year’s extraordinarily powerful El Niño will leave investors with nowhere to hide. Banks are reviewing loans to clients exposed to El Niño, the latest sign of the growing impact the warm-weather pattern is having across the globe. Spain’s BBVA — which has a large presence in Latin America, a region vulnerable to crop-damaging drought and floods — has asked local risk teams to review loans, Bloomberg reported. The concerns follow warnings from money managers that this year’s extraordinarily powerful El Niño will leave investors with nowhere to hide, as it disrupts commodity supplies and drives up inflation.
In some regions, however, the warmer weather may be welcome: A milder winter could help European and East Asian nations weather the worst of the energy price spikes caused by the Iran war, analysts said.