Central Bank adopts tough stance toward shipping banks

According to news agency Reuters, the European Central Bank is taking a tough stance toward the major shipping-exposed banks, not least in Germany.

Photo: Rederiforeningen

The European Central Bank (ECB) plans to take a tough stance toward the banks in the Eurozone with major loans to shipping, several sources tell news agency Reuters, and the valuation of ships is crucial for several of the major German shipping banks, which have allegedly placed far too high values on their ships compared to actual market values.

Shipping was quickly deemed one of the problem areas in relation to the ECS's coming stress test of 100-150 major banks in the Eurozone, starting November 4th 2014. The purpose of the new central bank supervision is to prevent the kind of financial collapse that triggered the global financial crisis back in 2008. And the German - especially the state-owned - banks have supported the shipping industry.

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