German Banks Offload “Toxic” Shipping Debt

by Jonathan Saul, Arno Schuetze (Reuters) Top national lenders Deutsche Bank and Commerzbank are stepping up efforts to offload distressed shipping loans, finance sources said, as the German banking system grapples with $100 billion in toxic debt from the sector.   While the shipping sector is showing signs of recovery after a near-decade long downturn, it is … [Read more...]

Germany Bails Out Bad Shipping Loans

German state-controlled lender NordLB has agreed to take full control of its loss-making Bremer Landesbank (BLB) unit, which is suffering from a weak shipping market that is chipping away at its capital. The owners of BLB said in a joint statement late on Wednesday that the city of Bremen would receive 180 million euros ($201 million) for its 41 percent stake in the … [Read more...]

German Ship Lenders Brace For ECB Health Check

By Arno Schuetze and Andreas Kröner FRANKFURT, Jan 30 (Reuters) - As the European Central Bank prepares to test the resilience of the region's lenders, few look as exposed as Germany's shipping banks. Before the financial crisis, many German banks pushed into the business of lending to the companies transporting the world's burgeoning trade in goods and raw materials, … [Read more...]

Moody’s Sees Bad Shipping Loans Increasing at German Banks

Dec. 10 (Bloomberg) -- Germany’s top shipping lenders, including Commerzbank AG and HSH Nordbank AG, face rising credit default risks next year as banks come under increasing scrutiny from regulators, according to Moody’s Investors Service. The eight banks under review, which had 105 billion euros ($144 billion) in loans to the crisis-hit industry in 2012, are … [Read more...]

Shipping Lenders Toughen Oversight After Worst Rout in 23 Years

Sept. 23 (Bloomberg) -- Shipping lenders are tightening rules on who their clients can trade with after the industry’s worst rout in at least 23 years. Banks are threatening to cancel loans if ship owners do business with customers they perceive to be at risk of failing to honor contracts, according to the Baltic and International Maritime Council, whose members … [Read more...]