European banks account for approximately three-quarters of the global ship financing market of approximately USD 475 billion, with German banks having by far the highest exposure compared to their European competitors. Banks in Scandinavia and the United Kingdom follow. As a result, German banks are particularly exposed to any negative market developments in the shipping industry. Although, there are signs of recovery in shipping markets, this only applies to certain sectors.
For lending banks the question arises whether there are other methods of portfolio management besides the traditional methods, such as refinancing of an expiring shipping loan or enforcing collateral. From a strategic and risk management point of view as well as with respect to liquidity and equity management, it may be an interesting option to sell shipping loan portfolios as a whole to investors.
