The importance of bank and syndicated loans in shipping industry, the approach of banks to the matter

Shipping, one of the world?s most costly sectors, having its ownproperties and is composed of ship building industry, ports industry, shipoperations, yatching, fisheries etc., is capital and labor intensive sector. As itcan not be affordable investing in shipping industry with enormous ownassets only, financing can be done with bank loans.This study with the title ?The Importance of Bankand Syndicated Loans in Shipping Industry, the Approach of Banks to theMatter? comprises four sections.Turkey?s place in the shipping trade, cabotage transport, internationaltransport and the developments of Turkish International Shipping Register Actand the main structure of both Turkish and European Union banking sectorsare the subject matters of the study.History and stage of European Union shipping policies, application ofIMO regulations, cabotage policies, competition policies, Union membercountries and Japan and South Korea that have influence in ship constructionindustry are also studied. Government support to the sector is appreaciated inthose countries.Some details are given about the loans used in shipping sector. Bankorigin loans and also Turkish Eximbank, World Bank, European InvestmentBank, Islamic Development Bank, Public and Syndicated loans and a samplesyndication strategies and yield calculations are outstanding in the matter.In the conclusion, the developments in the banking sector of Turkeythat has a wide potential for the shipping industry due to its geographiclocation and has strength to compete within international markets andTurkey?s share in the world maritime trade have been pointed out.Key Words : 1- Shipping Finance 2- Bank Loans3- Syndicated Loans 4- Underwriter Bank5- Basel II Criteria