Risk Radar Highlights: Reputational and sector exposure - Risks
Risk Radar Highlights: Reputational and sector exposure - Risks
Latin American Banks are exposed to reputational risks from a broad range of areas, including corruption, bribery and sanctions, as well as financial risks related to exposure to primary sector of the regional economy, specifically to activities related to the deforestation of the Amazon.
Risk Radar Highlights: Technological change and diversity - Opportunities
Risk Radar Highlights: Technological change and diversity - Opportunities
Latin American Banks have medium-term ESG-related opportunities from improving and expanding the use of technology to placing more focus on workforce diversity within the sector itself.
Sector Catalysts: Change in credit allocation and creation of carbon markets
Sector Catalysts: Change in credit allocation and creation of carbon markets
Local and global focus on environmental risks related to the Amazon will likely impact the sectors and companies to which the banking sector provides credit. This could have short-term impacts on the profitability of the sector. The longer term impact will depend on whether deforestation can be stopped or reversed.
Sector Name: ESG Risk Group Two – Sector going through a transition
Sector Name: ESG Risk Group Two – Sector going through a transition
We place the Latin American Banking sector as a Group Two ESG Risk category. This sector is going through a sustainability transition, with growing focus on ESG issues in bank strategy, credit allocation and diversity of staff. The sector is still heavily exposed to ESG risks though.
