Reuters - BNP Paribas exits U.S. energy loan market

Oil Barrels

BNP Paribas is pulling out of a niche U.S. energy lending business for the second time in four years after plunging oil prices dragged what was once seen as some of the safest energy loans into losses.

'Given the current environment in the oil and gas markets and the short to medium term outlook, BNP Paribas has decided to halt the redevelopment of its reserve-based lending business', BNP said in a statement.

Reuters reports that BNP shut its reserve-based lending business in Houston after 13-year-low oil prices stoked concerns of rising loan defaults among borrowers, according to two sources.

BNP declined to comment on the size of the business.

To access the complete Reuters article hit the link below:

BNP Paribas exits niche U.S. energy loan market on oil price rout

Global shares, bond yields plunge on fears for banks and global growth

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts