EuropeFinance and Insurance
ECB looking into shipping loan loss provisions
Reuters is reporting that the European Central Bank (ECB) has contacted banks across the continent to assess the risk of their shipping exposure.
The ECB’s banking supervisor sent an email at the end of last week asking a number of European banks for details of their shipping loans and the status of their loan loss provisions as a first step in a broader review of lending in the sector, a source told Reuters.
The ECB has declined to comment on the matter.
This will be an interesting story to follow. We’ve always wondered what happened to all those loans from way back in 2006-08 that are ‘out the money’ now. The banks must be sitting on some heavy paper losses which haven’t come out in the wash yet!