Concerns about bias among offshore carriers' banks

Partiality problems cannot be ruled out when a shipping bank serves as a creditor while also consulting carriers in financial turmoil through its brokerage department. This debate is intensifying up in Norway.

Photo: Farstad Shipping

There could be a bias issue related to the fact that a bank can provide a loan to a carrier while also serve as a consulting brokerage company for the same carrier when its asset values face upgrades or impairments, or seeing as the negotiations regarding loan provisions take place with the same bank.

This issue is brought up by Norwegian business daily Dagens Næringsliv, which has reviewed a number of Norwegian offshore carriers and their financial reports, and on this basis the newspaper has determined whether the financial consultants for the carrier hail from the same company from which the carrier's loans stem.

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