Risk Aversion. Banks In Ship Financing

Vessel as finance security can lessen risks finance institute faces, and it also can provide capital needed in shipping purchasing and constructing, so shipping finance as a finance method is widely used.The chapter one in this thesis discusses the concept, nature, category of finance security and the application in shipping financing. Registry is needed to make ship finance, but only those who are qualified can make hypothec, and these qualification are usually prescribed by law. Undoubtedly, risks will be exit in whole process of ship finance, but can be eliminated or even can be avoided. How to avoid these risks is the point banks must think over, it will be discussed in chapter 3,4and 5 of this thesis.As mentioned above, for banks, shipping finance may be dramatically profitable, but maybe be highly risky, thus banks should aware its own rights and duties and fully protect its own interests. During the course of prospect of China shipping industry and financing industry, by discussing bank's interest protection in shipping finance, this essay aims to do some benefit to the development and perfect of shipping finance in China.