Credit rating company Fitch said Monday it is likely that German
banks will continue to experience high losses from shipping
portfolios next year.
German banks active in ship lending, such as Commerzbank
(CBK.XE), HSH Nordbank and NordLB could be more affected in the
European Central Bank's planned bank stress tests in 2014, Fitch
said.
"While we do not consider there to be any material
underestimation of shipping risks at German banks, the assessments
are likely to include a focus on shipping," the rating firm
said.
Fitch expects the shipping crisis to last until at least the end
of 2014. While noting that the third quarter showed some
improvements, the agency added that market imbalances still persist
due to the oversupply of vessels in dry cargo, container and crude
tanker markets.
The ECB is planning to conduct stress tests on the euro zone's
largest banks in conjunction with the European Banking Authority in
2014, to determine how much banks' assets would lose in value under
another economic shock.
Write to Nicky Redl at nicky.redl@dowjones.com
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