ICC’s Olivier Paul urges the trade finance industry to work together in advocating for fair regulatory treatment in TXF article

Writing in TXF, Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), explains how the need to comply with mounting regulation and compliance requirements has led to unintended consequences for trade finance.

In turn, it is up to the industry, led by organisations such as ICC, to advocate for appropriate and fair treatment of trade finance within banking regulation.

Read the ICC’s latest report on the topic, Banking regulation and the campaign to mitigate the unintended consequences for trade finance: a milestone report.

Read the full article on TXF here.

What can be done to close the global trade finance gap? BNY Mellon and GTR ask industry experts their views

Following the recent launch of its global survey, Overcoming the Trade Finance Gap: Root Causes and Remedies, BNY Mellon, in partnership with GTR, invited industry experts to take part in a virtual roundtable to examine and build upon the findings. The participants were Joon Kim – Global Head of Trade Finance Product and Portfolio Management, BNY Mellon Treasury Services; Maurice Iskandar – Assistant General Manager, Head of International Division, Banque Libano-Française; Olivier Paul – Head of Policy, ICC Banking Commission; Fernando Pierri – Global Head of Trade Services, Banco Santander Brasil; and Michael Lim – Head of Financial Institutions, Transaction Banking, ANZ.

To read the full article, please click here

 

Why Southeast Asia’s global trade moment has arrived: BNY Mellon in Asia Outlook

Southeast Asia is not only thriving as a manufacturing centre, it is likely to  benefit hugely from China-U.S. trade tensions. In an article for Asia Outlook, Arnon Goldstein, Regional Head of Relationship Management APAC, and Joon Kim, Global Head of Trade Finance Product and Portfolio Management, BNY Mellon Treasury Services discuss how its banking sector will need to keep pace – and may need external help to leverage the potential opportunities.

To read the full article, please click here

BNY Mellon discuss the results of their global survey into the trade finance gap in GTR

The global trade finance gap stands at a staggering US$1.5tn, according to latest figures. And to compound matters further, for many institutions, trade finance rejections are in fact increasing. Indeed, a new global report from BNY Mellon, “Overcoming the Trade Finance Gap: Root Causes and Remedies”, has found that trade finance rejection rates are rising in a third of the institutions surveyed.

In an article for GTR, Joon Kim, Global Head of Trade Finance Product and Portfolio Management at BNY Mellon Treasury Services, provides an outline of the results of the bank’s recent global survey on the trade finance gap – including what participants believe to be the most effective ways of narrowing the gap.

To read the full article, please click here

Deutsche Bank releases the second edition of its payables finance whitepaper

With the market for payables finance – and the understanding of it – evolving all the time, Deutsche Bank has released a revised and updated guide that seeks not only to factor in the latest developments, but also to re-evaluate the key questions that define the industry. What is payables finance and where does it fit into the wider universe of supply chain finance techniques? What is driving demand for these solutions? How do the physical and financial supply chains interact? And how do you go about setting up a successful programme?

“Payables Finance A guide to working capital optimisation” can be read here.

The news was covered by: Business Money, Trade Finance Global International Trade Magazine, TRF news, TXF, The global treasurer

BRI is a lesson in patience for financial institutions, says Commerzbank in The Asset

Writing for The Asset, Commerzbank’s Agnes Vargas and Hans Krohn assess the opportunities that the Belt and Road Initiative (BRI) may bring for Europe’s small- and medium-sized enterprises, and how they can engage with the project.

While the “first phase” of the BRI – the construction of large-scale infrastructure – largely excludes SMEs across Central Europe, it is the “second phase” – financing and trade opportunities along these revived trading corridors – for which international financial institutions should be preparing.

Given the enormity and volume of the infrastructure projects defining the first phase, it is likely to be some years until these projects will link to enable the second phase’s transcontinental trade flow. So for the time being, European SMEs should treat the BRI as a lesson in patience. In the meantime, advise Vargas and Krohn, financial institutions should take advantage of the time they have to prepare.

To read the full article, please click here (requires subscription).

 

Global Supply Chain Finance Forum’s Christian Hausherr and David Trecker discuss payables finance in Documentary Credit World article

Writing in Documentary Credit World, Christian Hausherr, European Product Head of Payables Finance at Deutsche Bank and Chair of the Global
Supply Chain Finance Forum, and David Trecker, Global Head of Supply Chain Finance at Bank of America, discuss the industry-led initiatives advancing clarity and consistency for payables finance.

The article is a part of a series aiming to increase understanding of the techniques outlined in the Standard Definitions for Techniques of Supply Chain Finance, first published in 2016.

Read the article in the July/August edition of Documentary Credit World. (subscription required)

BNY Mellon’s Arnon Goldstein and Joon Kim delve into Asia’s trade potential for The Asian Banker

Despite global trade facing a multitude of challenges, including U.S.-China trade tensions and increasing protectionist policies, Asian trade remains robust. Writing for The Asian Banker, BNY Mellon’s Arnon Goldstein and Joon Kim discuss the resilience of Asian trade and Asia’s position as not only an anchor, but an engine, for global trade.

According to Goldstein and Kim, as Asia’s import and export markets strengthen and countries such as Vietnam pick up the baton from China as key low-end manufacturers, while China moves to a more consumer-driven economy, Asian trade is well positioned to continue flourishing.

 

 

To read the full article, please click here.

Global Supply Chain Finance Forum release receivables discounting paper, covered by the specialist press

The Global Supply Chain Finance Forum (GSCFF), comprised of BAFT (Bankers Association for Finance & Trade), Euro Banking Association (EBA), Factors Chain International (FCI), International Chamber of Commerce (ICC), and International Trade and Forfaiting Association (ITFA), has released its new guidance document, Market Practices in Supply Chain Finance: Receivables Discounting Technique.

The paper is the first in a series intended to provide clarity and consistency to the world of supply chain finance, based on the GSCFF’s 2016 Standard Definitions for Techniques of Supply Chain Finance.

To read the paper, please click here

The news was covered by ABA Banking Journal, Business Money, TRF News, Trade Finance Global, TXF .

International Chamber of Commerce releases 2018 Trade Register report, covered by the specialist press

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