ECB looking into shipping loan loss provisions

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Avatar
    sdlf
    June 22, 2016 at 11:05 am

    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!