By Andreas Kröner

FRANKFURT, June 21 (Reuters) – The European Central Bank is taking a tough take a look at lenders’ ship financing portfolios amid a broad deterioration within the transport market, protecting banks on edge in regards to the potential want for extra capital and better loss provisions, 5 individuals accustomed to the state of affairs mentioned.

The ECB’s banking supervisor despatched an e-mail on the finish of final week asking a raft of European banks for particulars of their transport loans and the standing of their mortgage loss provisions as an “initial step” in a broader evaluate of lending within the sector, one of many sources quoted the e-mail as saying.

“It is a very extensive request,” the supply advised Reuters.

The ECB declined remark. (Additional reporting by Frank Siebelt in Frankfurt and Jonathan Saul in London, Writing by Jonathan Gould; Editing by Edward Taylor)

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