Impacts of the recent financial crisis on ship financing in Hong Kong: a research note

Abstract

This note presents an initial assessment of the impacts of the recent financial crisis which peaked in late 2008 on banks’ ship financing practices. A survey of banks with a shipping division in Hong Kong suggests that banks reduced their lending to shipping after the financial crisis. Banks also tend to emphasise loan quality and security over market share. Overall, the evidence indicates a lower appetite for risk-taking and more stringent requirements for collaterals and guarantees on the part of banks. Based on the findings, several future research issues in ship financing are highlighted.