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Abstract

This dissertation consists of three essays on shipping finance, focusing on the regulatory impacts of environmental changes in banking and maritime sectors. Under Basel IV, the Loss Given Default (LGD) input floor requires higher capital reserves for loans with substantial collateral. The analysis, using ANOVA, OLS regression, and T-tests, suggests that the LGD floor is not overly restrictive but may impose excessive capital demands on low-leverage portfolios. To optimize capital allocation, banks should explore alternatives like export credit agency financing, collateral insurance, and loan portfolio securitization.

In addition to banking regulations, the environmental regulations in shipping have stricter, which have impacted on shipping finance. Therefore, the research also examines the potential “green premium” for environmentally-friendly vessels, particularly those with LNG or methanol dual-fuel engines. However, findings indicate insufficient evidence for a green premium or notable asset volatility differences between green and conventional vessels. Despite this, environmental regulations like the EU Emissions Trading System (ETS) could enhance the value of green vessels in the future. Furthermore, the study assesses the financial effects of greenhouse gas (GHG) regulations by bodies such as the International Maritime Organization (IMO) and the EU, which are reshaping ship financing. The research promotes financial strategies, including retrofitting investments and CO2 pricing evaluation under the EU ETS, to advance sustainable shipping initiatives.

This research underscores the necessity for adaptable financial strategies that balance regulatory adherence, capital efficiency, and environmental sustainability in the maritime sector.

Publication Type:	Thesis (Doctoral)
Subjects:	H Social Sciences > HE Transportation and Communications H Social Sciences > HF Commerce H Social Sciences > HG Finance
Departments:	Bayes Business School > Bayes Business School Doctoral Theses Bayes Business School > Finance Doctoral Theses

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