Shift in maritime lending power in International Shipping News 14/02/2026 Ship finance is undergoing a structural transformation that extends far beyond the typical market cycle, according to legal experts. In a Holland & Knight Insights article, authors Sophia Agathis, a partner at the firm, and Nicholas Kaasik, senior counsel, note that as 2026 unfolds, the ship finance industry is expected to reach a crossroad where traditional banking caution meets a surging tide of alternative credit and aggressive direct lending. Going forward, European banks are likely to prioritize top-tier shipowners with better credit ratings For decades, European banks have served as the bedrock of maritime capital. However, the implementation of Basel IV at the beginning of 2025 introduced a layer of complexity that is fundamentally altering the traditional lending scope. Agathis and Kaasik note that one of the “seemingly evergreen narratives” in ship finance is the still-unclear impact of Basel IV on lending by European banks. While the regulations were designed to strengthen supervision and risk management, the practical result has been a shift toward extreme conservatism. The authors observe that this regulatory shift has led to a “more selective approach” to new ship finance deals. Rather than a broad retreat from the sector, European banks are refining their focus to a narrow band of the market. “Going forward, European banks are likely to prioritize top-tier shipowners with better credit ratings,” they said. This leaves a significant gap in the market, as for smaller owners or those with “less-predictable earnings”, access to traditional bank finance remains challenging. However, this vacuum will not stay empty for long, as the uncertain environment is prompting both lenders and borrowers to explore alternative structures and partners. Strategic rise of revolving credit As traditional term loans become harder to secure for all but the largest players, the nature of the debt being issued is also changing. There is a trend towards the increasing use of revolving credit facilities (RCFs) by shipowners. Once the domain of general corporate finance, RCFs are now a preferred tool for shipping companies with strong earnings and credit profiles. The appeal lies in the operational agility these facilities provide. “The flexibility of an RCF allows shipowners to draw, repay and redraw funds as business needs evolve, positioning them to capitalize on market opportunities or weather unexpected downturns.” Agathis and Kaasik point out that several high-profile shipowners have secured substantial RCFs recently, often with tenors of five to seven years. “These facilities are typically provided by syndicates of international banks, demonstrating that where risk is deemed acceptable, traditional lenders remain competitive,” they said. “The preference for RCFs reflects both the stronger financial position of many shipowners and a broader industry focus on the future – shipowners recognise the cyclical nature of shipping and want to ensure liquidity for fleet renewal, expansion or opportunistic acquisitions.” Private credit funds and institutional investors are no longer merely “lenders of last resort” for distressed deals or unconventional assets Perhaps the most dramatic shift in the last year has been the maturation of the direct lending market. Private credit funds and institutional investors are no longer merely “lenders of last resort” for distressed deals or uncon