European banks’ energy exposure of over $306b is “manageable” and made up of less risky assets than those held by US rivals, according to a new report by rating agency Moody’s, The Financial Times reported.

Moody’s analysed the potential impact of low energy prices on the 19 large European banks which disclosed their energy exposures, a group that includes lenders such as BNP Paribas, Rabobank, HSBC, Barclays, and Deutsche Bank. The rating agency found that the banks collectively had energy exposure equal to a third of their common equity tier one capital. Two banks, ING and Société Générale, had exposure of more than 50% of capital.

EconoTimes wrote that most of the European banks’ energy exposure is concentrated in the large integrated oil companies, which Moody’s views as being of a lower risk than oil companies in the upstream – exploration and production – and midstream – transport and storage. This is in contrast to the US and Canadian banks, which have larger exposure to lower-rated sectors.