Shipping Market Financing: Special Features and the Impact of Basel III

Sambracos, Evangelos and Maniati, Marina (2013): Shipping Market Financing: Special Features and the Impact of Basel III.

Abstract

Shipping sector constitutes a sector with special characteristics that considerably differentiate it from the other sub-sectors of international transport. The maximisation of benefits for each one of the special market characteristics form a highly dynamic environment, with high risk of loss of invested capital. Within this framework, commercial banks, being the main source of financing shipping market, which is characterised by high capital and operating costs, have to take into account various variables in order to minimise the risk and maximise the return. The last is of particular importance considering the recent regulatory framework for banks applied by the Basel III, which has been elaborated on the grounds of inappropriateness of Basel II.

• Item Type: MPRA Paper
• Language: English
• Keywords: Finance, Shipping Market, Basel, Risks
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R40 - General

References

Aggelopoulos Chr. P. (2008), "The Banks and the Financial System, Markets - Products - Risks", Athens, 2nd ed., "Stamoulis" Editions.

Antoniou H. (2010) “The New Normal in Shipping Finance”, Capital Link Greek Shipping Forum 2010, 23 February 2010

Bijwaard G.E, Knapp S. (2009) “Analysis of ship life cycles—The impact of economic cycles and ship inspections”, Marine Policy, 33, pp. 350–369

Faust P. (1976), “The influence of Exogenous Factors on freight rate development”, Institute of Shipping Economics, Bremen, pp. 4-5

Grammenos C.Th. (2002) “Credit Risks, Analysis and Policy in Bank Shipping Finance”, The Handbook of Maritime Economics and Business, LLP, Chapter 32, pp. 734.

Kalfaoglou F. (2001) General Banks Overview, Bank of Greece, 2001.

Kavussanos M.G. & Alizadeh A.H. (2002) “Efficient pricing of ships in the dry bulk sector of the shipping industry”, Maritime Policy and Management, Vol. 29, No 3, p.312.

Laos N. (2003) “Financial Engineering”, Diavlos Editions, p. 23. Metaxas B.N. (1971) “The economics of tramp shipping”, Athlone Press (London), pp. 37 & 189-190

Ping L. (2008) “Basel II overview and its implications for emerging markets”, APEC seminar, Shanghia, Dec 8

Stopford M. (1997) “Maritime Economics, 2nd Edition”, Sterling/ Routledge, p.78.

Stopford M. (2009) “Maritime Economics", 3rd edition, London, Routledge, p.140.

Zuellig S. (1942) “Die Seefrachten, 1920-1938”, H. Girsberger ; Zürich, pp.140.