July 8, 2016
Deutsche Bank has announced its intention to sell at least $1 billion of shipping loans. The move comes as the bank works to reduce its exposure to shipping, which is facing closer scrutiny from the European Central Bank.
A glut of ships, combined with an anemic global economy and consumer demand, are negatively impacting the container and dry bulk shipping industries. As such, Germany’s largest lender is reportedly trying to offload at least $1 billion of the toxic debt.
The institution is not, however, exiting the shipping business. One source indicated that the goal is to lighten its portfolio. Deutsche Bank has $5 billion-$6 billion worth of total exposure to the shipping sector.