The International Chamber of Commerce (ICC) Banking Commission, part of the ICC’s Finance for Development Hub, has released its 2018 Trade Register report – again highlighting the low risk nature of trade finance in comparison to other asset classes.
Results indicate that default rates from 2008-2018 are low across all products and regions, averaging 0.37% for Import Letters of Credit (L/Cs), 0.05% for Export L/Cs, 0.76% for Loans for Import/Export, and 0.47% for Performance Guarantees (when weighted by obligors).
This year’s data set also includes non-OECD Export Credit Agency-backed export finance and, given its growing and now longstanding significance across all markets, supply chain finance (SCF).
To access the report, please click here.
The news was covered by GTR, TXF, The Paypers, Trade Finance Global, Trade Finance Analytics, Fintech Finance, TRF News, Business Money, Hellenic Shipping News
Commerzbank and Bangkok Bank have jointly run an international trade transaction based on Distributed Ledger Technology (DLT), the first Europe-to-Asia trade transaction completed on the Marco Polo network.
The transaction comprised the supply of glass tubes from German specialty glass manufacturer Schott to Thai packaging manufacturer A.P.A. Industries, with the entire flow of information mapped via R3’s Corda DLT platform. All parties involved were able to communicate and view trading data simultaneously via specially set up digital nodes.
Enno-Burghard Weitzel, head of product management trade services at Commerzbank AG, says, “We are happy to be one of the drivers to develop this digital solution for trade finance and to support clients with our expertise.”
Following outreach by Moorgate, the news was covered by: Finextra, Fintech Finance, TRF News (behind paywall), TXF News (behind paywall), IJGlobal (behind paywall), Global Trade Review, Der Treasurer, The Paypers, Tokenpost, Block Tribune, and Fintech Insight.
Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), features in Trade Finance Global’s latest Trade Finance Talks podcast, to discuss the unintended consequences of regulation on trade finance.
Following the release of an ICC report on the topic, the podcast elaborated on the key steps to ensuring that regulation does not hinder the provision of trade finance, including the growing importance of digitalisation.
To listen to the podcast, please click here.
The International Chamber of Commerce (ICC) Banking Commission has released a whitepaper urging the trade finance industry to work together to ensure that regulation does not hinder the availability of trade finance and remains relevant in a digital landscape.
The milestone report, titled Banking regulation and the campaign to mitigate the unintended consequences for trade finance, takes a close look at the regulation and compliance requirements that have come into force since the 2007 financial crisis and the industry’s subsequent efforts in promoting their fair treatment of trade finance instruments.
To read the report, please click here.
The news was covered in GTR, TXF, Business Money, PYMNTS, Trade Finance Analytics, Trade Finance Global, Fintech Finance, Finextra, International Trade Magazine, TRF News, Financial IT and Trade Arabia.
Writing for International Trade Magazine, Christoph Gugelmann and Nils Behling, co-founders of Tradeteq, discuss the financing problems facing SMEs – especially in emerging markets – and how trade receivables’ potential as an investable asset class can help provide a solution.
Indeed, while trade finance has been a sound investment option for decades, only now has technology reached the right level to make these assets easily investable.
Read the full article in the latest print edition of International Trade Magazine.
BNY Mellon, with support from the ICC, has launched its new global report and survey: “Overcoming the Trade Finance Gap: Root Causes and Remedies”.
The findings reveal that trade finance rejection rates are increasing in a third of institutions. These numbers are significant, and highlight the challenge many businesses are facing when it comes to accessing funding for trade not only persists, but could be getting worse.
With the trade finance gap remaining a significant threat to the health of global trade, the survey examines its causes and, importantly, moves the conversation towards resolution – exploring participants’ views on what they think could most effectively help to close the gap.
Read the survey to find out what the industry had to say about the factors driving the gap, and what they believe the focus should be to address it.
In an article for Gulf Business, Olivier Paul, Head of Policy at the International Chamber of Commerce Banking Commission, explains how the move towards paperless trade could help bridge the US$1.5 trillion gap between the demand and supply of trade finance.
Digitalisation will help decrease costs, increase efficiency and allow the introduction of non-banks and fintechs to the sector. These factors combined should help increase market capacity, in turn allowing for a progressive reduction in the trade finance gap.
To read the full article, please click here
The Trade Finance Distribution Initiative, an industry-led initiative to make trade finance an investable asset class – has released a whitepaper discussing the potential for the originate-and-distribute model to transform the trade finance sector and reduce the US$1.5 trillion gap between the demand and supply of trade finance.
The whitepaper, produced in collaboration with online trade finance distribution platform Tradeteq, the International Trade and Forfaiting Association (ITFA) and the International Chamber of Commerce (ICC) United Kingdom, explores the impact of post-2008 banking regulation on the trade finance industry – arguing that the introduction of non-bank capital is key to helping resolve the sector’s financing gap.
To read the whitepaper, please click here.
The news was covered by TXF, Trade Finance Global, TRF, The Paypers, Business Money, Fintech Finance, The Asset.
Tradeteq, the leading online trade finance distribution platform, has been featured in an article by TXF’s Head of Trade, Treasury and Risk, Katharine Morton.
Discussing the potential for trade finance as an investable asset class, Morton notes that there is increasing interest in attracting institutional investors who
might like to invest in such assets.
In turn, she highlights Tradeteq as an example of a digital endeavour which is in the process of developing platforms to put banks and investors together.
To read the article, please click here.
Speaking with Finyear, Tradeteq’s Christoph Gugelmann and Nils Behling discuss how the company has evolved, the role of technology in alleviating the trade finance gap and the state of the French and European trade finance markets.
To read the full article, please click here