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Consolidation causes concentration-risk issues for banks: DVB

Consolidation is credited with helping to establish a healthier airline industry in the USA over the past decade – but has its drawbacks, in the view of DVB Bank's global head of aviation Eelco van de Stadt.

"Consolidation is one of the big risks as a banker," says van de Stadt. "You're limited in what you can do."

Speaking at the ISTAT EMEA conference on 25 September, van de Stadt observed that consolidation had narrowed the range of clients to which banks could lend, making concentration limits more of an issue.

"It's the same for leasing," he notes. Avolon and DAE Capital acquired CIT's leasing business and AWAS, respectively, earlier this year.

DVB Bank resolves concentration risk by selling down loans to newcomers, says van de Stadt.

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