Bundesbank eyes shipping risks at German lenders

The Bundesbank sees risks for German lenders ahead of a European Central Bank audit, citing banks' shipping exposures and commercial properties, according to magazine Wirtschaftswoche.

A prolonged shipping downturn continues to weigh on those German banks lending to the industry, the weekly magazine reported on Saturday, citing Bundesbank board member Andreas Dombret.

"The large banks have reduced their portfolio of shipping credits by 10 percent since the middle of last year, but I expect there will be further value adjustments," Dombret was quoted as saying.

"A recovery of the shipping industry before 2015 is not realistic," he added.

Germany's BaFin financial regulator and banks are gearing up for the ECB's audit that will affect over 100 lenders across Europe's single-currency area. The Frankfurt-based ECB is due to assume oversight of euro zone lenders in November 2014.
Source: Reuters (Reporting by Andreas Cremer; Editing by Robin Pomeroy)