“Should investors still care about Bank Energy Exposure with oil at $50?” That’s the question posed by Morgan Stanley’s equity research team in a new research note sent to clients this week.
According to Morgan Stanley’s research, global bank exposure to the energy complex currently amounts to $870 billion, of which $550 billion is related to the oil and gas sector, with $360 billion tied to the commodity sector. Oil and gas exposure is around 2% to 5% of total loan books across the US, European and Asian banking complex with commodities amounting to a further 2% to 3% of the total loan book.
Oil Patch Bankruptcies Are Just Getting Started
While these figures don’t appear to be overly concerning at...
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