Hopeful signs for ship financing from EU banks

Posted by economia 05/07/2017 0 Comment(s) Business File,

Business File, June-July-August 2017, No. 111

 

Banks

 

The international and EU framework on capital requirements for ships has an impact on the cost of their nancing. In the a ermath of the 2008 nancial crisis ship lending from banks has become more costly and scarce at international and EU level. Bank lending is subject to the Basel III Accord on capital requirements, which is under review. However, if the current Basel IV proposals materialise, European banks may lose their shipping clients. Shipowners may turn to other sources of lending, including capital markets and private equity funds. Whilst the Basel III was manageable, the Basel IV could prove a major threat to ship nance in Europe. In the European Shipping Week 2017 there were hopeful signs that the EU institutions will support the position of the shipping industry in the nal version of Basel IV.

 

Out of 30 banks dealing with ship nancing on a world- wide basis, 20 are European, 10 mainly in Asia, and Citibank is the only ship lender in the US. The ten- dency is smaller lending volumes, in- creased regulation and less available capital for shipping. Since 2008 we have witnessed a massive exodus of banks from the shipping loans amount- ing to $70 billion...

 

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