September 21, 2016
Sir, James Shotter writes: “Before the financial crisis, lending to the shipping industry was big business for many German banks. [Now] however, those maritime exposures have assumed a nightmarish quality.” “Perfect storm looms over shipping lenders” September 21.
What a wonderful opportunity to do some real journalistic investigation. Why does not Shotter dig in and research what bank capital requirements the financing of the shipping industry generated for German banks? And then try to figure out whether German banks would have been so dangerously overexposed to it, had they been required to hold the same capital as when lending to German SMEs and entrepreneurs.