In an article for TXF, Deutsche Bank explores how payables finance can help shield supply chains

 In a global supply chain, each supplier, regardless of size, can form a critical link. But as trade tensions escalate and macroeconomic conditions worsen, global supply chains – and the suppliers that underly them – are looking increasingly vulnerable. If a link in the supply chain breaks, production lines can grind to a halt – a particular worry for the large buyers that sit atop this global process.

To foster stability across supply chains, and to help suppliers optimise their working capital, companies are increasingly turning to payables finance, a supply chain finance technique. Through payables finance, large corporate buyers can extend or maintain existing supply payment terms and suppliers can access financing at a rate that reflects the risk of its highly creditworthy buyer.

But as demand for payables finance grows, how is the industry adapting to meet it? Christian Hausherr, Chair, Global Supply Chain Finance Forum and Head of Product Management, Trade Finance and Supply Chain Finance, Deutsche Bank, explores in an article for TXF

The article can be read here (behind paywall)

ICC’s Olivier Paul discusses how to ensure a successful and accessible trade finance market in Banker Middle East article

Writing for Banker Middle East, Olivier Paul, Director, Finance for Development, ICC, outlines how industry-led advocacy is necessary for the fair regulatory treatment of trade finance, both in the Middle East and globally.

Paul explains that, “achieving fair treatment of  trade finance across regulatory frameworks will, in turn, allow for increased access to trade finance for MSMEs”.

Read the full article here, in the November 2019 issue of Banker Middle East, on p60-63.

How is payables finance evolving? Deutsche Bank’s Christian Hausherr explores in an article for TRF News

Demand for payables finance programmes has continued to grow in recent years, fuelled not only by working capital concerns, but also by the need for greater stability, as supply chains navigate an increasingly volatile economic environment. As an expanded base of anchor buyers, including non-investment-grade companies, move into the market for payables finance, however, the creation and implementation of robust industry standards will be important to ensuring the solution develops sustainably. In an article for TRF News, Deutsche Bank’s Christian Hausherr explores how payables finance is adapting to meet these ever-evolving demands.

To read the full article, please click here 

BPL Global’s George Bellord and Sam Evans discuss trade credit insurance with Into Africa

In an exclusive interview with Into Africa, BPL Global Directors George Bellord and Sam Evans explore the impact that the global political and economic climate is having on demand for trade credit insurance to cover African risk, as well as the challenges and opportunities for the wider credit and political risk insurance (CPRI) market.

“Africa is one of the regions with the largest exposure for our clients. The high growth rates of many countries across Africa, such as Ethiopia and Cote D’Ivoire, have meant increased levels of trade, as well as infrastructure projects, ranging from energy to roadway construction,” said Evans.

To read the full interview, please click here (page 49).

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).